What is Special Economic Zone (SEZ) ?

Defination: 
  • Special Economic Zone (SEZ)  based on Chinese model, introduced in Exim Policy (2000); 
  • The term special economic zone (SEZ) is commonly used as a generic term to refer to any modern economic zone. 
  • In these zones business and trades laws differ from the rest of the country. 
  • Broadly, SEZs are located within a country's national borders.
  • The SEZs will have infrastructure facilities of international standards and can be set up in both public and private sector. 
The SEZ Rules provide for:
  • Single window clearance for setting up of an SEZ;
  • Single window clearance for setting up a unit in a Special Economic Zone;
  • Single Window clearance on matters relating to Central as well as State Governments;
  • Simplified compliance procedures and documentation with an emphasis on self certification
  • The minimum size of SEZ shall not be less than 1000 hectares.
Features:
  • It will be a duty free zone and no license is required for import.
  • Units can manufacture items reserved for SSls.
  • However, labour and environment laws shall not be relaxed.
  • Some important SEZs, are: Pipavav (Gujarat), Tuticorin (TN).
  • Some SEZ are in set-up phase : Santacruz, Kandia, Cochin, Vizag, Positra (Pvt. Sector) Gujarat; Nanguneri (TN), Bhadoi (UP), Paradeep (Orissa), Kakinada (AP).