Ministers On SEZs To Take Final Decision On Infrastructure Limit

New Delhi: The empowered group of ministers on special economic zones (SEZs) will, at its next meeting, take a final decision on permitting infrastructure development in the non-processing area of the zones. The commerce ministry had, in March, put on hold this change in the SEZ rules. Earlier, a developer could have built more hospitals, schools, housing units and other social infrastructure in the non-processing area than cleared by the board of approval. According to the rules, at least 50 per cent of a zone has to be dedicated to core activity in the processing area. The remaining part of the zone, known as the non-processing area, is for support infrastructure.

For each activity, a zone developer has to take the approval of the board and conform to the quantum of area allowed. SEZ experts said not permitting the development of additional area was not healthy for the developers plans. Most developers, while purchasing land from the state government authorities, enter into land-use agreements. There is no surety that the board will permit the entire quantum of the area in a non-processing area to be developed.