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).