Unit 5 SEZ -Human settlement and planning 9th sem B.Arch 2013 anna univ regulation

SPECIAL ECONOMIC ZONE (S.E.Z)
K.KEDHEESWARAN,M.Arch
Asst,proff.K.KEDHEESWARAN,M.Arch Asst,prof

Special Economic Zone (SEZ) is defined as "a specifically delineated duty free enclave and
shall be deemed to be foreign territory for the purposes of trade operations and duties
and tariffs".
K.KEDHEESWARAN,M.Arch Asst,prof
SEZs
INTRODUCTION
 An engine for economic growth
 Supported by quality infrastructure
 Complemented by an attractive fiscal package
 With the minimum possible regulations.
Government of India have notified Special Economic
Zones (SEZs) Act 2005 and notified Special Economic
Zone Rules 2006 with a view to augmenting
infrastructure facilities for export.

CHRONOLOGY OF SEZ FRAMEWORK
Export Processing Zone
(EPZ) policy1965.
1st EPZ was set up in
Kandla (Gujarat)
In 1990s, as a part of
reforms, powers
delegated to zone
authorities.
New Policy in
April 2000
Special Economic
Zones Act MAY
2005.
Full law and rules
effected February
2006.
SEZ’S CATEGORIES
 Free Trade Zones (FTZ)
 Export Processing Zones (EPZ)
 Free Zones (FZ)
 Industrial Estates (IE)
 Free Ports
 Urban Enterprise Zones
STRUCTURE OF SEZ’S

HISTORY OF SEZ’S IN INDIA
 During the past four decades many developing countries have been creating special zones to promote their
exports and earn foreign exchange.
 The term Export Processing Zone (EPZ) was first coined to identify the Shannon zone set up in Ireland in
1958.
 India established its first EPZ in 1965 in Kandla (Gujarat)
 In 1984 EPZs were established in Cochin (Kerala), Falta (Calcutta,now Kolkata), Madras (now Chennai) and
NOIDA (Uttar Pradesh).
 The Visakhapatnam EPZ (Andhra Pradesh) was established in 1989 and the Surat EPZ (Gujarat) in 1997.
FORMATION OF ACT’S SEZ Act, 2005
With a view to overcome the shortcomings experienced on account of the multiplicity of controls and
clearances; absence of world class infrastructure, and an unstable fiscal regime and a view to attract larger
foreign investments in India,the Special Economic Zones (SEZs) Policy was announced in April 2006.

 GENERATION OF ADDITIONAL ECONOMIC ACTIVITY
 PROMOTION OF EXPORTS OF GOODS AND SERVICES
 PROMOTION OF INVESTMENT FROM DOMESTIC AND FOREIGN SOURCES
 CREATION OF EMPLOYMENT OPPORTUNITIES
 DEVELOPMENT OF INFRASTRUCTURE FACILITIES
The main objectives of the SEZ Act are:

States where SEZ Act has been enacted & is in force
STATUS OF STATE. SEZ ACT’S /POLICIES

EC0N0MIC BENEFITS
SEZ policy has directly benefited economy in following ways:
Employment Generation : SEZs generate direct employment for skilled and unskilled labour ; indirect
employment and employment for women workers.
Skill Formation: Formation of SEZs and new job requirements increase firm level activity whereby the labour
force acquires skills from within the firm through training and learning.
Attract investors:: SEZs offer a highly conducive investment scenario for developers. No tax during
development and operational stage. At profit stage 100% income tax exemption for Ist 5 yrs, 50% for next 5
yrs.
Technology Upgrading: SEZs attract export-oriented FDI and promote other forms of collaboration between
local firms and MNCs.
Exports: EPZ exports registered an impressive growth rate over the period 1966 to 2002. EPZ exports increased
in India from less than Rs.1 million in 1966 to over Rs.97727 million in 2002.
Manufacturing Sector: Share of manufacturing industry in the exports grew from negligible percentage in
1970 to above 6 % in 2005.

S.E.Z TYPOLOGY
SEZs can be categorized on basis of sector, function or location and required to have processing as well as
non-processing area.
S.E.Z
Sector — Specific SEZ
MULTI — PRODUCT SEZ
SEZ in a port or airport
Manufacture goods or render services in a
particular sector.
Manufacture multiple goods in one sector or
across multiple sectors.
Trading and warehousing included
SEZ in an existing port or airport for manufacture
of goods falling in two or more sectors.
Trading and warehousing included

CATEGORY WISE
SEZ LAYOUT
PROCESSING AREA NON- PROCESSING AREA
• Processing area is the demarcated area in SEZ
where units can be located for manufacture of
goods or rendering of services.
• Minimum processing area has been uniformly fixed at
50% for Multiproduct SEZs
Upto 90 % for product specific SEZs
Non-processing area is intended to provide
support facilities to SEZ processing area and
may include:
• Educational institutions.
• Hospitals
• Hotels
• Recreation and entertainment facilities
• Residential and business complexes

AREA ALLOCATION
AREA ALLOCATION IN TERMS & USE
SECTOR SPECIFIC SEZS
• PHARMA
• IT/ITES
• GEMS & JWELLERY
• BIO TECHNOLOGY
• CHEMICALS
• CONSUMER APPLIANCES
• MEDICAL EQUIPMENTS
• ENGINEERING BASED
• APPAREL & READYMADE
• AUTOMOTIVE COMPONENTS
• TELECOM EQUIPMENTS
• R& D
• PROCESSED FOOD & BIO EQP.
• ENTERTAINMENT &
RECREATION

DEVELOPMENT NORMSDEVELOPMENT GUIDELINES – MULTI PRODUCT SEZ
FAR—100
Total Floor Space — 50,00,000 sqmts
Floor Space utilization

AREA REQUIREMENTS

ENTITIES OF SEZ
‘Developer” means a person
who, or a State Government
which, has been granted by the
Central Government a letter of
approval under sub-section
(10) of section 3 and includes
an Authority and a Co
Developer for setting up the
SEZ
“Co-Developer’ means a person
who, or a State Government
which, has been granted by the
Central Government a letter of
approval under sub-section (12)
of section 3. for providing
infrastructure facilities or for
carrying out authorized
operations in a notified SEZ”.
A Unit approved by the Unit
Approval Committee to
engage in manufacturing or
services activities from within
the SEZ.

SEZ TYPOLOGYSEZs in India At present there are Eight functional SEZs located at:
 SantaCruz (Maharashtra),
 Cochin (Kerala),
 Kandla and Surat (Gujarat),
 Chennai (Tamil Nadu),
 Visakhapatnam (Andhra Pradesh),
 Falta (West Bengal)
 Nodia (Uttar Pradesh)
 Nagpur (Maharashtra)
 Raipur (Chatisgarh)
 Indore(Madhyapradesh)
 Jamshedpur(Jharkhand)
 Indore(Madhyapradesh)
 Satna(Madhyapradesh

FALTA SEZ-West Bengal
 Set up by the Government of India in the year 1984.
 Subsequently, two other SEZs were set up. They were MANIKANCHAN SEZ for
gems and jewellery and WIPRO SEZ for IT and ITES, located at Salt Lake,
Sector-V, Kolkata.
–It is about 55 kilometres from Calcutta city and 45 kilometres from the
southern suburbs.
–It is well connected by a developed network of roads including a State
highway, two ports at Calcutta and Haldia and International airport at
Dumdum.
Infrastructural Facilities available at FALTA SEZ
 Gross area 280 acres (acquired 87acres and transferred from CPT 193acres).
 Location - Panchayat area.
 Area Developed- 253 acres (full infrastructural facilities)
 Area under development 27acres
 Built - up space - SDF-15570 sq.m.(2nos.) - fully allotted.
 Industrial shed- 15350sq.mtr.(7 nos) - fully allotted.
 1 million litres per day water supply with drainage facilities.
 Electric sub-station for dedicated power supply for all categories, supplemented by
local sub-stations.

Social and Economic infrastructure
Telecommunication services, Post office including Courier Services.
• Residential accommodation for Staff
• Container Handling Jetty - Capacity 5 containers per hour.
• Community Polytechnic for skill development and training.
• Inland Container Depot (lCD).
Infrastructural Facilities
 Developed land & Built-up area at affordable and attractive
rates.
 Quality and Stable Power Supply
 Efficient road network
 Container Handling Jetty

CONCLUSION
SEZ policy has no doubt given a boost to the Indian Economy but comparison of implementation with other
countries brings out lacunas in India’s SEZ Policy.
The reasons for disparities can be attributed to many reasons as listed below.
1. Improper SEZ policy
2. Irresponsible planning while locating SEZ
3. Ineffective Land Acquisition Policies
4. Improper Rehabilitation Policy
Key challenges in the SEZS programme will be
 Due exercise of control while approving and locating SEZ’s.
 Compensation for acquisition shall be on the basis of market prices .
 Give share of acquired land ¡n the developed area to the owners.
 Provision of employment for Landless labourers.
 Provision of revenue for ULBs on sharing basis to compensate their withdrawal once the areais notified
as SEZ.
 Development of SEZs needs to be integrated with existing Master Plans and Regional Plans.
 There is need to develop regional/sub regional plan around the SEZ areas.

Unit 5 SEZ -Human settlement and planning 9th sem B.Arch 2013 anna univ regulation

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Unit 5 SEZ -Human settlement and planning 9th sem B.Arch 2013 anna univ regulation