Guidelines on Grant of Extension of Validity of In-principle
Approvals
[Ref: SEZ Circular No. 22 dated 16 July 2009]
Subject: Guidelines regarding “Grant of Extension of Validity of
in-principle approvals”.
F.No. C.8/3/2009-SEZ dated 16 July 2009
The undersigned
is directed to enclose herewith guidelines regarding grant of Extension of
Validity of in-principle approvals as per the decisions taken in the 12th and
31st meetings of the Board of Approvals held on 31.05.2007 and 15.01.2009 respectively
for information and necessary action of all concerned.
2. These guidelines may be followed by Chief
Secretaries of State Governments/Development Commissioners while
recommending/forwarding the cases for grant of Extension of Validity of
in-principle approvals.
3. All the developers holding letter of
in-principle approval may kindly note the guidelines for applying for extension
of validity of in-principle approvals.
Guidelines
approved by BoA in the 12th meeting held on 31st May
2007 for grant of first Extension of Validity of in-principle approvals:
All such cases
where:
(i) the request for extension had been filed before the expiry
of the LoA and
(ii) where steps for
implementation of the proposal like acquisition/purchase of land etc. have been
taken;
the Letter of Approval (LoA)
may be extended for 1 more year beyond the original validity. While extending
the in-principle LoAs, any approvals given for area
of more than 5000 hectares may be capped at 5000 hectares to align all such
approvals as per the Government decision in this regard.
Guidelines/norms approved by BoA in the 31st
meeting held on 15th January 2009 for grant of second extension of in-principle
approval.
Type of SEZ |
Conditions for grant of1st extension |
Conditions for grant of 2nd extension |
|
(1) |
(2) |
IT/ITES/G&J/Biotech/Nonconventional Energy
SEZ etc. with min. Area requirement of 10 Ha and Stand alone FTWZ |
Conditions laid by BoA
in its 12th meeting |
No second extension to be granted in such cases. |
Sector Specific SEZs other than mentioned above |
Conditions laid by BoA
in its 12th meeting |
Conditions for grant of first extension will be
applicable. Apart from this, the developer must have 60% land
acquisition/possession |
Multi-product |
Conditions laid by BoA
in its 12th meeting |
Conditions for grant of first extension will be
applicable. Apart from this, the developer must have 50% land acquisition/possession |
The cases which do not fulfil the above criteria
will be placed before BoA for consideration.
The Board noted that as per SEZ Rules 2006, the
in-principle approval is valid for one year and extension of validity of
in-principle approval may be granted for another two years. In the light of EGoM decision prohibiting compulsory acquisition, it may be
difficult to acquire 1000 hectares of contiguous land within a period of 3
years. To allow extension of validity of in-principle approval beyond 3 years
in case of multi product SEZs, the Board directed to take steps to amend the
relevant Rule to add such provision.
The amendment to the
relevant Rule is under process.