The ministry of commerce and industry would soon announce relaxed land-related norms for Special Economic Zones (SEZs) to arrest the slackening pace of growth in these tax-free zones by making certain changes in the SEZ policy.
In a major amendment to the policy, enacted in 2006, for the first time the government will change the minimum land requirement across all sectors. It will reduce the threshold limit for each sectorspecific SEZ, in the wake of severe constraints faced by the developers in acquiring huge tracts of contiguous land. At present, the minimum land required for multi-product, multi-service, information technology and gem and jewellery SEZs is 1,000 hectares (ha), 100 ha and 10 ha each, respectively. This is also referred to as the ’10-100-1,000′ model.
The problem faced by most developers is with acquiring land for multi-product SEZs of 1,000 ha that is ‘vacant’ as well as ‘contiguous’.The government has now planned to reduce the minimum land requirement significantly.
Source: The Economic Times, Delhi/NCR