Special Economic Zones (Amendment) Rules, 2010 - G.S.R. 501(E) - Special Economic Zone

MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) NOTIFICATION New Delhi, the 14th June, 2010 G.S.R. 501(E).- In exercise of the powers conferred by Section 55 of the Special Economic Zones Act, 2005 (28 of 2005) the Central Government hereby makes the following rules further to amend the Special Economic Zones Rules, 2006 , namely:- 1. (1) These rules may be called the Special Economic Zones (Amendment) Rules, 2010 . (2) They shall come into on the date of their publication in the Official Gazette. 2. In the principal rules, for rule 3 , the following rule shall be substituted, namely:- 3. Proposal for setting up of Special Economic Zone. - Every proposal under sub-sections (2) to (4) of section 3 shall be made in Form A and be submitted to the concerned Development Commissioner as specified in Annexure-III, who, within a period of fifteen days, shall forward it to the Board with his inspection report, State Government s recommendation and other details specified under rule 7 . . 3. After rule 3 of the principal rules, the, following rule shall be inserted, namely:- 3A. Proposal for approval as Co-developer. - The proposal under sub-section (11) of section 3 for providing infrastructural facilities in the Special Economic Zone shall be made in Form A1 to the concerned Development Commissioner, as specified in Annexure III, who, within a period of fifteen days, shall forward it to the Board with his recommendation; 4. In rule 5 of the principal rules, - (i) in sub-rule (5), for clause(c), the following clause shall be substituted, namely :- (c) allow generation, transmission and distribution of power within a Special Economic Zone . (ii) after sub-rule (6), the following sub-rule shall be inserted, namely:- (7) The Developer or Co-developer shall have to construct the minimum built up area specified in this rule within a period of ten years from the date of notification of the Special Economic Zone in which at least fifty percent of such area to be constructed within a period of five years from the date of such notification. . 5. In rule 6 of the principal rules, in sub-rule (2),- (i) for clause (a) and the proviso of thereof, the following clause and provisos shall be substituted, namely:- (a) The letter of approval of a Developer granted under clause (a) of sub- rule (1) shall be valid for a period of three years within which time at least one unit has commenced production and the Special Economic Zone become operational from the date of commencement of such production: Provided that the Board may, on an application by the developer or the co-developer, as the case may be, for reasons to be recorded in writing extend the validity period: Provided further that the Developer or Co-developer as the case may be, shall submit the application in Form C1 to the concerned Development Commissioner as specified in Annexure III, who, within a period of fifteen days, shall forward it to the Board with his recommendations. ; (ii) after clause (a), the following clause shall be inserted, namely : - (aa) Where the Special Economic Zone becomes operational, the letter of approval granted under clause (a) shall be valid till the period of validity of notification of such Special Economic Zone; (iii) in clause (b), for the proviso, the following provisos shall be substituted, namely:- Provided that the Board may, on an application by the developer, for reasons to be recorded in writing, extend the validity period: Provided further that the Developer shall submit the application in Form C2 to the concerned Development Commissioner, as specified in Annexure III, who, within a period of fifteen days, shall forward it to the Board with his recommendations. 6. After rule 6 of the principal rules, the following rule shall be inserted, namely:- 6A. Power of Central Government to review letter of approval - The Central Government may review the letter of approval granted under sub- rule (1) of rule 6 on the recommendation of the Board in the following circumstances, namely: (i) the Developer submits application in Form C3 for change of the sector to the concerned Development Commissioner, as specified in Annexure III, who, within a period of fifteen days shall forward it to the Board with his recommendations: (ii) the Developer submits application in Form C4 for increase in the area to the concerned Development Commissioner, as specified in Annexure III, who, within a period of fifteen days, shall forward it to the Board with his recommendations; (iii) the Developer submits application in Form C5 for decrease in the area to the concerned Development Commissioner, as specified in Annexure III, who, within a period of fifteen days, shall forward it to the Board with his recommendations. . 7. In rule 8 of the principal rules, the following proviso shall be inserted, namely: - Provided that the Central Government may, on the recommendation of the Board on the application made by the Developer, if it is satisfied, modify, withdraw or rescind the notification of a Special Economic Zone issued under this rule: Provided further that the Developer shall submit his application for withdrawal of notification in Form C6 to the concerned Development Commissioner, as specified in Annexure III, who, within a period of fifteen days, shall forward it to the Board with his recommendations . 8. In rule 9 of the principal rules, for the words submit to the Board , the words submit in Form C7 to the Development Commissioner who within a period of fifteen days, shall forward it to the Board with his recommendations, shall be substituted, 9. In rule 11 of the principal rules, - (i) for sub-rule (1), the following sub-rule shall be substituted, namely: - (1) The Development Commissioner shall demarcate the area and issue demarcation order under the provision of section 6 , specifying the survey numbers and boundaries of area of the Special Economic Zone as specified in the notification issued under rule 8 . ; (ii) in sub-rule (2), the following provisos shall be inserted, namely: - Provided that in case of a Special Economic Zone for information technology or information technology enabled services or electronic hardware or biotechnology, the Development Commissioner shall approve such measures and inform the Board accordingly: Provided further that in case the developer proposes to create two hundred and forty centimeter high wall with top sixty centimeter being barbed wire fencing and single entry and exit point, no separate approval shall be required under this sub-rule . 10. In rule 12 of the principal rules, in sub-rule (1), for the procure goods , the words procure goods and services shall be substituted, 11. After rule 77 of the principal rules, the following rule shall be inserted, namely:- 78. E-filing - Every developer and unit shall file applications and returns electronically on the Special Economic Zone online system, within a period of one month of the system being commissioned . 12. After Form A to the principal rules, the following Form shall be inserted, namely - Refer Full form or text. 13. After Form C to the principal rules, the following Forms shall be inserted namely - Refer Full form or text. 14. After Annexure II to the principal rules , the following Annexure shall be inserted namely - Refer Full form or text. [F. No. C. 2/3/2008 - SEZ] ANIL MUKIM Jt. Secy. Note:- The principle rules were published in the Gazette of India, Extraordinary vide number G.S.R. 54(E). dated the 10th February, 2006 and subsequently amended vide notifications as under:- S. No. G.S.R. Dated 1. 470(E) 10th August, 2006. 2. 393(E) 16th March, 2007. 3. 1744(E) 12th October, 2007. 4. 2661(E) 14th November, 2008. 5. 72(E) 3rd February, 2009 6. 1293(E) 20th May, 2009. 7. 562(E) 3rd August, 2009.