In a Notification dated 17th December 2019 the Ministry of Commerce and Industry (“Ministry”) has brought in the Special Economic Zones (3rd Amendment) Rules, 2019 (“Amended Rules”) which are entirely altering the requirements of minimum land area for setting up a class or classes of Special Economic Zone previously provided under the Special Economic Zones Rules, 2006 (“Principal Rules”).
The Amended Rules have come into force on the date of their publication in the Official Gazette i.e. on 20th December 2019.
Key takeaways from the Amended Rules:
- The Amended Rules have omitted the following definitions:
- Special Economic Zone for multi-product : means a Special Economic Zone for more than one sector where Units may be set up for manufacture of goods falling in two or more sectors or rendering of services falling in two or more sectors or any combination thereof including trading and warehousing.
- Special Economic Zone for specific sector : means a Special Economic Zone meant exclusively for one or more products in a sector or one or more services in a sector.
- Special Economic Zone in a port or airport : means a Special Economic Zone in an existing port or airport for manufacture of goods in two or more goods in a sector or goods falling in two or more sectors or for trading and warehousing or rendering of services.
- Further, Annexure IV (which indicates the Special Economic Zones located in B1 category cities) has been omitted by the Amended Rules.
- The requirements of minimum land area for specific class or classes of Special Economic Zone has been entirely altered. For a detailed analysis please refer to the attachment.