• SEZ is the next big thing the real estate arena would be experiencing within the coming years. Considering this, we have taken smart steps in implementing several SEZ projects in the states of Maharashtra and Andhra Pradesh.
  • A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. Usually the goal is an increase in foreign investment. Special Economic Zones have been established in several countries, including the People's Republic of China, India, Iran, Jordan, Poland, Kazakhstan, the Philippines and Russia.
  • Considering the need to enhance foreign investment and promote exports from the country and realizing the need that a level playing field must be made available to the domestic enterprises and manufacturers to be competitive globally, the Government of India, in April, 2000 announced the introduction of the Special Economic Zones policy in the country. They are deemed to be foreign territory for the purposes of trade operations, duties and tariffs. The Special Economic Zones in India closely follow the PRC (Pupils Republic of China) model.
  • Currently, India has 15 SEZs, each an average size of 200 acres. The government has approved as many as 164 or more SEZs. 8 Export Processing Zones (EPZs) have been converted into SEZs. These are fully functional. All these SEZs are in various parts of the country in the private/joint sectors or by the State Government.
  • Development of world-class infrastructure for export of goods and services and generation of significant additional economic activity
  • Positive net foreign exchange earnings
  • Promotion of investments from domestic and foreign sources
  • Creation of employment opportunities
  • Restrictions on sale of land
  • The developer as to hold a minimum of 26% stake in the SEZ to retain all the benefits
  • Minimum size requirements depending on products or services offered
  • Maintenance of sovereignty and integrity of India and security of the states
Type of SEZ Minimum Area Processing Area
Multi product

Multi product exclusively for services
1000 hectares

(200 hectares in specified states)
100 hectares
35% or more of total area

35% or more of total area
Sector specific or in a port or airport 100 hectares 50% or more of total area
Electronic hardware and software, including ITES 10 hectares 50% or more of total area and minimum built up area of approximately 1.1 million sq. ft. (100,000 sq. m)
Biotechnology, non-conventional energy or gems and jewellery 10 hectares 50% or more of total area and minimum built up area of approximately 0.4 million sq. ft. (40,000 sq. m)
Sector specific (other than IT/ITES, biotechnology etc) in specified states 50 hectares 50% or more of total area
Free trade & warehousing zone (whether as a part of multi-product SEZ or otherwise)
  • Only FTWZ: 40 hectares with a built up area of not less than approximately 1.1 million sq. ft. (100,000 sq. m)
  • Part of multi-product: No area stipulation
  • Part of sector specific SEZ: Maximum area is 20% of processing area
Note: 1 hectare = approximately 2.5 acres
  • A designated duty free enclave which is to be treated as foreign territory for trade operations, duties and tariffs
  • No license required for import
  • Exemption from customs duty on import of capital goods, raw materials, consumables, spares etc.
  • Exemption from Central Excise duty on procurement of capital goods, raw materials, consumable spares etc. from the domestic market
  • Supplies from DTA to SEZ units treated as deemed export
  • Reimbursement of Central Sales Tax paid on domestic purchases
  • 100% income tax exemption for a block of five years, 50% tax exemptions for two years and up to 50% of the Profits ploughed back for next 3 years under section 10-A of Income Tax Act
  • Supplies from DTA to SEZ to be treated as exports under 80HHC of the Income Tax Act.
  • Carry forward of losses
  • 100% Income-tax exemption for 3 years & 50% for 2 years under section 80-LA of the Income Tax Act for offshore banking units
  • Reimbursement of duty paid on furnace oil, procured from domestic oil companies to SEZ units as per the rate of Drawback notified by the Directorate General of Foreign Trade. SEZ units may be for manufacturing, trading or service activity
  • SEZ unit to be positive net foreign exchange earner within three years
  • Performance of the units to be monitored by a Committee headed by Development Commissioner and consisting of Customs
  • 100% Foreign Direct Investment in manufacturing sector allowed through automatic route, barring a few sectors
  • Facility to retain 100% foreign exchange receipts in EEFC Account
  • Facility to realize and repatriate export proceeds within 12 months
  • Re-export imported goods found defective, goods imported from foreign suppliers on loan basis etc. without G.R. Waiver under intimation to the Development Commissioner
  • "Write-off" of unrealized exports bills up to 5%
  • Commodity hedging by SEZ units permitted Capitalization of import payables
  • No cap on foreign investment for SSI reserved items
  • Exemption from industrial licensing requirement for items reserved for SSI sector
  • Profits allowed to be repatriated freely without any dividend-balancing requirement
  • Domestic Sales on full duty subject to import policy in force
  • No fixed wastage norms
  • Full freedom for subcontracting including subcontracting abroad. Subcontracting facility available to jewellery units
  • Duty free goods to be utilized in 5 years
  • Job work on behalf of domestic exporters for direct export allowed
  • No routine examination by customs of exports and import cargo
  • No separate documentation required for customs and Exim Policy
  • In house customs clearance
  • Support services like banking, post office clearing agents etc. provided in Zone Complex
  • Developed plots and ready to use built up space
  • Exemption from Custom/Excise Duty on goods for setting up units in the zone
  • Developer of SEZ may import/procure goods without payment of duty for the development, operation and maintenance of SEZ.
  • Income tax exemption for a block of 10 years in 15 years at the option of developer as per section 80-IA of the Income Tax Act read with Appendix 14-II-N of Handbook of Procedure.
  • Full freedom in allocation of developed plots to approved SEZ units on purely commercial basis.
  • Full authority to provide services like water, electricity, security, restaurants, recreation centres etc. on commercial lines.
  • Foreign investment permitted to develop township within the SEZ with residential areas, markets, play grounds, clubs, recreation centres and more.
  • Develop Standard Design Factory (SDF) building in exiting Special Economic Zones. Guidelines at Appendix 14-II-N
  • Income Tax exemption to Investors in SEZs under section 10 (23) G of the Income Tax Act.
  • Exemption from Service Tax.
  • Investment made by individuals in SEZ Company also eligible for exemption u/s 88 of the IT Act.
  • Development promoted to transfer infrastructure facility for operations and maintenance u/s 80-I-A of IT Act.
  • Generation, Transmission and Distribution of Power in SEZs allowed.
  • For detailed information on Draft SEZ Bill 2004 log in to www.sezindia.nic.in
No. Project Place State Area Type
1. Mindspace Madhapur, Hyderabad Andhra Pradesh 16.00 hectares IT/ITES
2. Mindspace Airoli, Navi Mumbai Maharashtra 14.07 hectares IT/ITES
3. TTC Jui Nagar, Navi Mumbai Maharashtra 21.47 hectares IT/ITES