The Special Economic Zone (SEZ) policy of the Union Government is operational since 1st April 2000. It is considered to be the best policy initiative taken by the Government of India in recent time to promote an ideal internationally competitive and liberalized environment for exports. SEZ policy for creation of Zones of Excellence came into effect as a direct consequence of Government’s sincere effort to introduce second-generation reforms in the Indian subcontinent.

Having realized the need for export promotion and opening up of the economy to face all the new challenges of the 21st century the Government of India (GoI) has progressively liberalized export policies and enforced tax reforms to provide incentives to the SEZ developers. In order to meet the ever-increasing demand for foreign investment, the economic laws dealing with Foreign Direct Investments (FDI) have been made more liberal to ensure steady flow of foreign funds into the SEZs.

At present 15 SEZs are operational in India each having an average size of 200 acres. Formal approval has been granted for development of 285 more SEZs in various parts of the country. Government’s plan to convert some of the existing Export Processing Zones to Special Economic Zones has been successfully implemented with 8 EPZs being converted into SEZs.

The list of all those 8 EPZs is given below: -

Kandla Free Trade Zone (KAFTZ), Kandla, Gujarat;
Santa Cruz Electronic Export Processing Zone (SEEPZ), S. Cruz, Maharashtra;
Cochin Export Processing Zone (CEPZ), Cochin, Kerala;
Falta Export Processing Zone (FEPZ), Falta, West Bengal;
Madras Export Processing Zone (MEPZ), Madras, Tamil Nadu;
Noida Export Processing Zone (NEPZ), Noida, Uttar Pradesh;
Visakhapatnam Export Processing Zone (VEPZ), Visakhapatnam, Andhra Pradesh.
Santa Cruz Electronics Export Processing Zone (SEEPZ), Mumbai, Maharashtra.

SEEPZ is exclusively meant for the exports of electronics and gems and jewellery. All other zones are operating as multi-product zones.

The SEZs have been developed in public, private and joint sectors not excluding Non Resident Indians and foreign enterprises or by State Governments.

Terms & Conditions For SEZ

The units, which have got approval from the SEZ scheme, are permitted to establish production units in SEZ.
The SEZ units must follow the local laws, rules & regulations or byelaws regarding area planning, disposal of sewerage, pollution control, power usage etc. They are also required to abide by the industrial and labor laws applicable locally.
The SEZ units need to take proper security arrangements to meet all the prerequisites of the laws, rules and procedures applicable for SEZ units.
The SEZ must have a minimum area of 1000 hectares in its possession with 25 percent of the total area being reserved for building up industrial area for developing manufacturing units.
For the product specific and port/airport based SEZs the criterion of ‘minimum 1000 hectares of area’ is not applicable.
An Inland Container Depot (ICD) will be an inherent part for any inland SEZ

Navi Mumbai (“ New Bombay”) Maharashtra is one of the largest SEZs being developed in India.