Measures for safekeeping of SEZs

Commerce and Industry

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE) RAJYA SABHA UNSTARRED QUESTION NO. 721 TO BE ANSWERED ON 18th SEPTEMBER, 2020 MEASURES FOR SAFEKEEPING OF SEZS 721. DR. AMAR PATNAIK: Will the Minister of Commerce and Industry be pleased to state the precautionary measures Government proposes to take for the safekeeping of the SEZs, against unlawful activities or related to the earmarked land by private entities, such as mortgaging of the acquired land to borrow from banks? ANWSER THE MINISTER OF COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL) Special Economic Zones (SEZs) being set up under the SEZs Act, 2005 and SEZs Rules, 2006 are primarily private investment driven initiatives. Units in SEZs operate in a bonded environment under the supervision of Development Commissioners along with a dedicated customs wing. All authorised activities in SEZs need to be approved by Board of Approval (BoA)/Approval Committee. The performance of the units is monitored annually by the Approval Committee consisting of Development Commissioner, Customs Authorities and State Government Authorities. In case of failure of required performance as per SEZ Act/Rules or any violation, action is taken under Foreign Trade (Development and Regulation) Act, 1992. Further, enforcement agencies like Directorate of Revenue Intelligence, Enforcement Directorate among others have been permitted to conduct preventive operations. Land is a State subject. Land for SEZs is procured as per the policy and procedures of the respective State Governments. In terms of Rule 11(9) of the SEZ Rules, 2006, sale of land in SEZ is not allowed as land is allotted on lease only. There is no restriction in SEZ Act for mortgaging land for raising loan from Banks.