Approval Mechanism And Administrative Setup
Approval Mechanism:
The developer submits the proposal for establishment of SEZ to the concerned State Government. The State Government has to forward the proposal with its recommendation within 45 days from the date of receipt of such proposal to the Board of Approval. The applicant also has the option to submit the proposal directly to the Board of Approval.
The Board of Approval has been constituted by the Central Government in exercise of the powers conferred under the SEZ Act. All the decisions are taken in the Board of Approval by consensus. The Board of Approval has 19 Members.
Its constitution is as follows:
(1) |
Secretary, Department of Commerce |
Chairman |
(2) |
Member, CBEC |
Member |
(3) |
Member, IT, CBDT |
Member |
(4) |
Joint Secretary (Banking Division), Department of Economic Affairs, Ministry of Finance |
|
(5) |
Joint Secretary (SEZ), Department of Commerce |
Member |
(6) |
Joint Secretary, DIPP |
Member |
(7) |
Joint Secretary, Ministry of Science and Technology |
Member |
(8) |
Joint Secretary, Ministry of Small Scale Industries and Agro and Rural Industries |
Member |
(9) |
Joint Secretary, Ministry of Home Affairs |
Member |
(10) |
Joint Secretary, Ministry of Defence |
Member |
(11) |
Joint Secretary, Ministry of Environment and Forests |
Member |
(12) |
Joint Secretary, Ministry of Law and Justice |
Member |
(13) |
Joint Secretary, Ministry of Overseas Indian Affairs |
Member |
(14) |
Joint Secretary, Ministry of Urban Development |
Member |
(15) |
A nominee of the State Government concerned |
Member |
(16) |
Director General of Foreign Trade or his nominee |
Member |
(17) |
Development Commissioner concerned |
Member |
(18) |
A professor in the Indian Institute of Management or the Indian Institute of Foreign Trade |
Member |
(19) |
Director or Deputy Sectary, Ministry of Commerce and Industry, Department of Commerce |
Member Secretary |
Administrative set up:
The functioning of the SEZs is governed by a three tier administrative set up. The Board of Approval is the apex body and is headed by the Secretary, Department of Commerce. The Approval Committee at the Zone level deals with approval of units in the SEZs and other related issues. Each Zone is headed by a Development Commissioner, who is ex-officio chairperson of the Approval Committee.
Once the SEZ has been approved by the Board of Approval and Central Government has notified the area of the SEZ, units are allowed to be set up in the SEZ. All the proposals for setting up of units in the SEZ are approved at the Zone level by the Approval Committee consisting of Development Commissioner, Customs Authorities and representatives of State Government. All post approval clearances including grant of importer-exporter code number, change in the name of the company or implementing agency, broad banding diversification, etc. are given at the Zone level by the Development Commissioner. The performance of the SEZ units are periodically monitored by the Approval Committee and units are liable for penal action under the provision of Foreign Trade (Development and Regulation) Act, in case of violation of the conditions of the approval.
Consequent upon the SEZ Rules coming into effect w.e.f. 10th February, 2006, Twenty-eight meetings of the Board of Approvals have since been held. During these meetings, formal approval has been granted to 531 SEZ proposals. There are 143 valid in-principle approvals. Out of the 531 formal approvals, 260 SEZs have been notified.
Land Requirement for approved SEZ
The total land requirement for the formal approvals granted till date is approximately 67772 hectares out of which about 109 approvals are for State Industrial Development Corporations/State Government Ventures which account for over 20893 hectares. In these cases, the land already available with the State Governments or SIDCs or with private companies has been utilized for setting up SEZ. The land for the 260 notified SEZs where operations have since commenced involved is approximately over 29953 hectares only.