Ans. A Special Economic Zone (SEZ) is a designated area where businesses operate under a duty-free environment, treated as a foreign territory for trade, duties, and tariffs. Its purpose is to boost exports and foster an environment that simplifies business operations, making it an attractive hub for investment and growth.

The Special Economic Zones Act, 2005, and the Special Economic Zones Rules, 2006, provide the
legal framework for the establishment, operation, and administration of SEZs in India.

SEZs in India can be categorized based on their industry focus:
• Multi-product SEZ
• Sector-specific SEZ (e.g., IT/ITeS, Biotech, Textiles, Pharmaceuticals, etc.)
• Free Trade Warehousing Zones (FTWZ)
• Agro-based SEZ
• Electronic Hardware SEZ
• Engineering SEZ
• Others as notified by the government

Any of the following entities can apply for setting up an SEZ:
 • Central Government or State Government
 • Private or Public sector companies
 • Partnership firms or Individuals
 • Foreign entities under FDI regulations

Ans. The Special Economic Zone (SEZ) scheme offers a range of benefits that foster a
business-friendly environment:
  • Liberal Economic and Labor Laws: The economic and labor regulations within SEZs are typically more flexible and business-friendly compared to the broader national framework.
  • Duty-free Import/Procurement: SEZ units can import or procure goods and services without incurring duties, covering activities related to authorized operations, development, and maintenance.

  • World-Class Infrastructure: SEZs provide state-of-the-art infrastructure that supports both manufacturing and service-based activities, enhancing business efficiency.
  • In-house custom clearance: SEZs, treated as airports, ports, Land Customs Stations, and Inland Container Depots under the Customs Act, facilitate seamless in-house customs clearance while also exempting SEZ units from routine customs examination for export/import cargo, streamlining operations further.
  • Ease of Doing Business: SEZs simplify business operations by reducing procedural
complexities, minimizing bureaucratic barriers, and eliminating obstacles from monetary, trade, fiscal, tariff, and labor policies. Single-window clearance for all approvals.

Together, these features create an ideal environment for business growth, boosting exports and attracting investment.

Ans. The State Government is not mandated but shall endeavour that the following are made available
in the State to the proposed SEZ Units and Developer, namely: –
• Exemption from the State and local taxes, State Goods and Services Tax, levies and duties,
including stamp duty, and taxes levied by local bodies on goods required for authorized
operations by a Unit or Developer, and the goods sold by a Unit in the DTA except the goods
procured from DTA and sold as it is
• Exemption from electricity duty or taxes on sale, of self-generated or purchased electric
power for use in the processing area of a SEZ
• Allow generation, transmission and distribution of power within a SEZ
• providing water, electricity and such other services, as may be required by the developer be
provided or caused to be provided
• Delegation of power to the DC under the Industrial Disputes Act, (No. 14 of 1947) and other
related Acts in relation to the Unit and workmen employed by the developer.
• Declaration of the SEZ as a Public Utility Service under the Industrial Disputes Act, (No.14
of 1947)
• Providing single point clearance system to the Developer and unit under the State Acts and
rules;

Ans. Free trade Warehousing Zone (FTWZ) means a Special Economic Zone wherein mainly trading
and warehousing and other activities related thereto are carried on. (Section 2(n) of SEZ Act).
Warehousing is normally done on behalf of a third party while trading is done by the SEZ unit itself.

Ans. A consolidated application seeking permission for setting up of a Unit and other clearances,
including those given in [17(1) of the SEZ Rules), shall be made to the DC (in Form F of the SEZ
Rules), with a copy to the Developer: —
The DC shall get the proposal scrutinised and get it placed before the Approval Committee for its
consideration.
The Approval Committee shall meet once in every fortnight on a fixed predetermined day.

The proposals received [under clauses (c) & (e) of sub-section (2) of section 9 of the SEZ Act] shall
be placed before the BOA by the DC for its consideration.
The Approval Committee may approve or approve with modification or reject a proposal placed
before it, within 15 days, where the approval is to be granted by the Board, the Board shall approve or
approve with modification or reject such proposal within 45 days of its receipt:

A proposal shall be made by the developer(s) in Form ‘A’ and be submitted to the concerned
Development Commissioner (DC) (as specified in Annexure-III of the SEZ Rules), who, shall
forward it to the Board of Approval (BOA) within 15 days with his inspection report, State
Government’s recommendation and other details to be furnished for issue of notification for
declaration of an area as SEZ (specified under rule 7.)
The State Government shall forward the proposals BOA along with its recommendations, within 45
days of receipt of such proposal. If the BOA approves a proposal received, the person shall obtain
concurrence of the State Government within 6 months from the date of such approval. While
forwarding a proposal, the State Government shall ensure that the requirements for establishment of
SEZ under (Rule 5 of SEZ Rules) have been complied with and shall attach copies of relevant
notifications issued by it in this regard.
The central government shall within a period of 30 days of the communication received grant either a
formal or an in-principle approval.

Process for SEZ Proposal Submission and Approval
1. Proposal Submission by Developer(s)
o The developer(s) shall submit a proposal in Form ‘A’ to the concerned
Development Commissioner (DC) as per Annexure-III of the SEZ Rules.

2. Review by Development Commissioner (DC)
o The DC shall examine the proposal and forward it to the Board of Approval
(BOA) within 15 days, along with:
§ An inspection report
§ State Government’s recommendations
§ Other required details for issuing a notification for SEZ declaration
(as per Rule 7).

3. State Government’s Review & Recommendation
o The State Government shall review and forward the proposal to the BOA
within 45 days, along with its recommendations.
o The State Government must ensure compliance with Rule 5 of the SEZ Rules
and attach relevant notifications.
4. Approval by Board of Approval (BOA)
o If the BOA approves the proposal, the applicant must obtain State
Government concurrence within 6 months from the date of approval.

5. Final Approval by Central Government
o Upon receiving the proposal from the BOA, the Central Government shall
review and grant either:
§ Formal approval or
§ In-principle approval
o This process shall be completed within 30 days of receiving the
communication.

Ans. The incentives and facilities offered to the units in SEZs for attracting investments into the
SEZs, including foreign investment include:
• Duty free import/domestic procurement of goods for use in authorised operations
(manufacturing, trading, services etc) as well as development, operation and maintenance of
SEZ units
• Exemption from Central Sales Tax, Service Tax and State sales tax. These have now
subsumed into GST and supplies to SEZs are zero rated under IGST Act, 2017.
• Other levies, if exempted by the respective State Governments.
• Single window clearance for Central and State level approvals.
• Supplies to SEZ are zero rated under IGST Act, 2017.
• Bonded and secure area where the developer can create state of the art infrastructure

Ans. Department of Commerce (DOC): The function of DOC is the formulation and review of the
policy including regulatory framework for SEZs. The highest decision making body for SEZs namely
the Board of Approval (BOA) is also administered by the DOC.
Office of Development Commissioner: The office of the Development Commissioner (DC)
administers the regulatory framework of SEZs. This includes administrative approvals, either by the
Unit Approval Committee or the DC on file. The customs officers are responsible for the customs
clearances of goods and services to and fro from the SEZ.
Developer: A Developer means a person who, or a State Government which, has been granted a LOA
for setting up and infrastructure development of the SEZ. While, most SEZs have only a single
developer, there is a provision in Section 3(10) of SEZ Act to approve more than one Developer in
cases where one Developer does not have in his possession the minimum area of contiguous land, for
setting up a SEZ.
Co-developer: A Co-Developer is any entity co-operated by the developer for setting up
infrastructural facilities in the approved SEZ. He would need to enter into an agreement with the
Developer. The proposal for any co-developer, if approved by the BOA, is granted an LOA by the
BOA for the same.
SEZ Units: Units are entities that are primarily who have been allotted LOA for engaging in exports
(including deemed exports), imports, domestic sourcing and domestic sales of goods and services
under the SEZ regulatory framework. It also includes Offshore Banking Units and Units in an
International Financial Services Centre.

Ans. A Formal approval is granted where land is in possession of the developer, an application to
which is made in Form-B to the person or the State Government concerned. However, an application
is made in Form C in case if the approval is for providing infrastructural facilities in the SEZ,
incorporating additional conditions, if any, specified by the BOA while approving the proposal
In-principle approval in other cases in Form-B 1 to the person or the State Government concerned,
incorporating additional conditions, if any specified by the BOA while approving the proposal.]

The identified area for an SEZ must be contiguous, vacant and have no public thoroughfare. The
definition of vacant land as per the SEZ Rules are that there are no functional ports, manufacturing
units, industrial activities or structures in which any commercial or economic activity is in progress.
In terms of land area requirements, an SEZ other than a SEZ for Information Technology(IT) or IT
enabled services, Biotech or Health (other than hospital) service, shall have a contiguous land area of
50 hectares or more
If a SEZ is proposed to be set up in States of Assam, Meghalaya, Nagaland, Arunachal Pradesh,
Mizoram, Manipur, Tripura, Himachal Pradesh, Uttarakhand, Sikkim, Goa or in a Union Territory,
the area shall be 25 hectares or more
There shall be no minimum land area requirements for SEZ for IT or IT enabled services, biotech or
health (other than hospital), but a minimum built up processing area requirement shall be applicable,
based on category of cities [Given in detail in Annexure IV(a) of the SEZ Rules]
1. Category’A’ – 50,000 sq. mts.
2. Category’B’ – 25,000 sq. mts.
3. Category’C’ – 15,000 sq. mts.
The minimum processing area in any SEZ cannot be less than 50% of the total area of SEZ

Ans. The Central Government shall grant the LOA to the Developer
The LOA of a Developer granted [under rule 6(1)(a) of the SEZ Rules] shall be valid for a period of 3
years within which at least one unit has commenced production and the SEZ becomes operational
from the date of commencement of such production: Provided that the BOA may, on an application
by the developer or the co-developer, for reasons to be recorded in writing extend the validity period:
The Developer or Co-developer, shall submit the application in Form C1 to the concerned DC as
specified in Annexure III, who, within a period of 15 days, shall forward it to the BOA with his
recommendations

Where the Special Economic Zone becomes operational, the LOA granted shall be valid till the period
of validity of notification of such SEZ.
The LOA of a Developer granted [under clause (b) of Rule 6(1) of the SEZ Rules] shall be valid for a
period of one year within which time, the Developer shall submit suitable proposal for formal
approval in Form “A” as prescribed (under the provisions of rule 3of the SEZ Rules)
Provided that the BOA may, on an application by the developer, for reasons to be recorded in writing,
extend the validity period: Provided further that the Developer shall submit the application in Form
C2 to the concerned DC, as specified in Annexure III, who, , shall forward it to the BOA with his
recommendations within 15 days.

Ans. The Central Government may [under 6A of the SEZ Rules] review the LOA granted to the
developer on the recommendation of the BOA in the following circumstances: –
The Developer submits application in Form C3 for change of the sector to the concerned DC, as
specified in Annexure III, who, within a period of fifteen days shall forward it to the BOA with his
recommendations:
The Developer submits application in Form C4 for increase in the area to the concerned DC, as
specified in Annexure III, who, within a period of fifteen days, shall forward it to the BOA with his
recommendations;
The Developer submits application in Form C5 for decrease in the area to the concerned DC, as
specified in Annexure III, who, within a period of fifteen days, shall forward it to the Board with his
recommendations.

Ans. The Developer requires a certificate from the concerned State Government or its authorized
agency stating that the developer(s) have
• Legal possession
• Irrevocable rights to develop the said area as SEZ
• The said area is free from all encumbrances
The State Government shall, while recommending a proposal for setting up of Special Economic Zone
to the Board indicate whether the proposed area falls under reserved or ecologically fragile area as
may be specified by the concerned authority.
Where the Board approves a proposal received for setting up an SEZ, the person shall obtain
concurrence of the State Government within six months from the date of such approval.

Ans. The areas falling within the SEZ may be demarcated by the Central Government or any authority
specified by it as-
(a) the processing area for setting up Units for activities, being the manufacture of goods, or rendering
services

(b) the area exclusively for trading or warehousing purposes
(c) the non-processing areas for activities other than given in (a) or (b).
The minimum processing area in any SEZ cannot be less than 50% of the total area of SEZ

The Approval Committee shall approve the proposal if it fulfils the criteria such as meeting NFE,
availability of space, conforming to pollution norms, contact and personnel information, barring of
specified activities etc. [ sub rules 2,3,4,5,6 of Rule 18]
On approval of the proposal, the DC shall issue a LOA (in Form G) for setting up of the unit.

Ans. The Developer may import or procure goods and services from the DTA, without payment of
duty, taxes and cess for the authorized operations, subject to the following provisions.
The Developer shall make an application, after obtaining approval for the authorized operations
(under rule 9 of SEZ Rules), to the DC, along with the list of goods and services, including
machinery, equipment and construction materials required for the authorized operations, duly certified
by a Chartered Engineer for approval by the Approval Committee.
The Developer shall declare the place of storage of goods within the SEZ to the Specified
Officer(SO). The goods imported or procured from the DTA by the Developer for authorized
operations shall be kept in a clearly demarcated area for inspection by the authorized officer before
such goods are brought into use.
The Developer shall execute a Bond-cum-Legal Undertaking (in Form D), jointly with DC and SO,
with regard to proper accounting and utilization of goods for the authorized operations within a period
of one year or such period, as may be extended by the SO.
The Developer shall maintain a proper account of the import or procurement, consumption and
utilization of goods and submit quarterly and half-yearly returns to the DC (in Form E. The Developer
shall submit a half-yearly certificate every financial year regarding utilization of goods from an
independent Chartered Engineer to DC and SO and every certificate shall be filed within 30 of the
period specified.
The Developer shall not remove goods from the SEZ to the DTA except with the permission of the
SO and on payment of duty applicable on such goods.

Ans. The DTA supplier supplying goods or services to a Unit or Developer shall clear the goods or
services, as in the case of export/zero-rated permitted under Goods and Services Tax laws or Central
Excise law, or as duty or tax paid goods under claim of rebate, on the cover of documents laid down
under the relevant Central Excise law for the purpose of export by a manufacturer or supplier.
Supplier of precious and semi-precious stones and synthetic stones and processed pearls from DTA to
SEZ units shall be eligible for grant of Replenishment, provided that the application for the
Replenishment Licence shall be made to the Development Commissioner.
Free on Board value of export of the Unit can be clubbed with Free on Board value of export of
entrepreneur in the DTA or vice versa for the purpose of according status holder certificate.

Ans. Any goods removed from a Special Economic Zone to the DTA shall be chargeable to duties of
customs which includes basic customs duty, IGST, antidumping, countervailing and safeguard duties
(under the Customs Tariff Act, 1975), where applicable, as leviable on such goods when imported
The rate of duty and tariff valuation, if any, applicable to goods removed from a Special Economic
Zone shall be at the rate and tariff valuation in force as on the date of such removal, and where such
date is not ascertainable, on the date of payment of duty

Ans. In the case of Advance Authorisations or EPCG licences, there has to be repeated applications
made to the regional offices of DGFT. However, in the case of SEZ, as long as the inputs are related
to the manufacturing or services, there is no need for such applications. Moreover, even building
materials for the use of the units can be imported under the SEZ Scheme.

Ans. The benefits for an SEZ developer are the following:
• Exemption from any duty of customs, [(under the Customs Act, 1962) (or the Custom Tariff
Act, 1975)] on goods imported into, or service provided in, a Special Economic Zone, to carry
on the authorised operations by the Developer or from a Special Economic Zone to any place
outside India
• Exemption from any duty of excise, under the Central Excise Act, 1944 or the Central Excise
Tariff Act, 1985, on goods brought from DTA to a SEZ, to carry on the authorised operations
by the Developer
• Exemption from service tax (under Chapter-V of the Finance Act, 1994) on taxable services
provided to a Developer to carry on the authorised operations in a Special Economic Zone
• Exemption from the securities transaction tax leviable [under section 98 of the Finance (No.
2) Act, 2004] in case the taxable securities transactions are entered into by a non-resident
through the International Financial Services Centre.
• Exemption from the levy of taxes on the sale or purchase of goods other than newspapers
under the Central Sales Tax Act, 1956 if such goods are meant to carry on the authorised
operations by the Developer.

Ans. The goods admitted into a SEZ shall be used by the Unit or the Developer only for carrying out
the authorized operations but if the goods admitted are utilized for purposes other than for the
authorized operations or if the Unit or Developer fails to account for the goods as provided under
these rules, duty shall be chargeable on such goods as if these goods have been cleared for home
consumption, in case a Unit is unable to utilize the goods imported or procured from DTA, it may
export the goods or sell the same to other Unit or to an Export Oriented Unit(EOU) or Electronic
Hardware Technology Park(EHTP) Unit or Software Technology Park(STP) Unit or Bio-technology

Park(BTP) Unit, without payment of duty, or dispose of the same in the DTA on payment of
applicable duties on the basis of an import licence submitted by the DTA buyer, wherever applicable.

A Unit may sub-contract a part of its production or any production process, to a unit(s) in the DTA or
in a SEZ or EOU or a unit in EHTP Park unit or STP unit or BTP unit with prior permission of the SO
to be given on an annual basis and subject to following conditions, namely: —
1. The finished goods requiring further processing or semi-finished goods including studded
jewellery, taken outside the SEZ for sub-contracting shall be brought back into Unit within 120 days
or within such period as may be extended by the SO for reasons to be recorded in writing for grant of
such extension. However, in the case of plain jewellery, the time period for getting it back is 28 days
while that for studded jewellery, it is 45 days.
2. Cut and polished diamonds and precious and semi-precious stones (except rough diamonds,
precious or semi-precious stones having zero duty) shall not be allowed to be taken outside the SEZ
for sub-contracting;
3. The DTA Unit undertaking sub-contracting or supplying jewellery against exchange of gold or
silver or platinum shall not be entitled to export entitlements;
4. The value of the sub-contracted production of a Unit in any financial year shall not exceed the
value of goods produced by the Unit within its own premises in the immediately preceding financial
year:
A Developer or a co-developer or on their behalf their contractor, as the case may be, may also
temporarily remove the goods, procured or imported duty free by them for their authorized operations,
to a place in the DTA or a unit in the same or another SEZ or EOU or a unit in EHTP Unit or STP
Unit or BTP Unit, for sub-contracting a process, with prior permission of and subject to such
conditions as may be prescribed by the Approval Committee.

Ans. — A Unit engaged in production or processing of agriculture or horticulture products, may, on
the basis of annual permission from the SO, remove to a farm in the DTA, inputs, namely, seeds,
fertilizers and chemicals for pre and post-harvest treatment, micro nutrients, plant and growth
regulators and other organic and inorganic substances used for plant nutrition, insecticides, fungicides,
weedicides, herbicides (and the equipment listed in Rule 44 of the SEZ Rules)
Provided that the removal of such items shall be subject to following conditions,
• Supply of inputs by Unit to the contract farm(s) shall be subject to the input-output norms as
may be approved by the Board
• There shall contract farming agreement between the Unit and DTA farmer(s)
• The Unit has been in existence for at least two years and is engaged in export of agriculture or
horticulture products: Provided that bank guarantee equivalent to the duty foregone on the
capital goods or inputs proposed to be taken out shall be furnished to the SO if the Unit has
not been in existence for two years.

Ans. A Unit may export goods or services as per the terms and conditions of LOA including agro-
products, partly processed goods, sub-assemblies and components except prohibited items under the

Import Trade Control (Harmonized System) Classification of Export and Import Items and the Unit
may also export by-products, rejects, waste scrap arising out of the manufacturing process.
A Unit engaged in development of computer software may undertake export, including export of
professional services, using data communication links or do physical exports, including through
courier service.
The Foreign Trade Policy restrictions on State Trading Enterprises shall not apply to SEZ
manufacturing Units. Provided that export of iron ore shall be subject to conditions as may be laid
down by the Central Government from time to time.
Minimum export price and requirements of export in consumer pack as provided for in the Foreign
Trade Policy shall apply in case the raw materials are procured indigenously and exported without
further processing or manufacturing activities.
The export of textile items shall be governed by bilateral agreements, if any.
A Unit may export free samples without any limit, including samples made in wax moulds or silver
mould or non-precious metal alloy or rubber moulds through all permissible modes of export.

Ans. The annual review of performance of unit and compliance with the conditions of approval shall
be undertaken by Approval Committee on the basis of Annual Performance Report (in Form I) duly
certified by an independent Chartered Accountant before the end of the first quarter of the following
financial year.
Units, which have not completed one year of operation from the date of commencement of
production, will not be monitored. In case a unit has completed less than five years from the date of
commencement of production, it will be monitored for the number of completed years. Annual
monitoring in the cases of old units which have completed more than five years will be undertaken for
only such number of years which fall in the subsequent block/s of five years.
CRITERIA FOR ANNUAL MONITORING:
Units with negative Net Foreign Exchange (NFE) in the 1st and 2nd year shall be placed under the
Watch List to watch their performance.
If a Unit continues to be NFE negative by the end of 3rd year, a Show Cause Notice shall be issued. If
the negative performance continues till the 5th year, DC shall initiate penal action (as provided under
rule 25 of the SEZ Rules)

• The Units are only required to achieve Positive Net Foreign Exchange to be calculated
  cumulatively for a period of five years from the commencement of production
• NFE = (A-B) where
• A is the sum of physical exports in free foreign exchange and deemed exports (as per Rule 53
  of the SEZ Rules)
• B is the sum of the imported and domestically procured raw materials and consumables along
  with the amortised value (10% per year over a 10-year period) of the capital goods and
  foreign technical know-how fees

Ans. The Unit may opt out of Special Economic Zone with the approval of the DC and such exit shall
be subject to payment of applicable duties on the imported or indigenous capital goods, raw materials,
components, consumables, spares and finished goods in stock, if the unit has not achieved positive
NFE, the exit shall be subject to penalty that may be imposed under the Foreign Trade (Development
and Regulation) Act, 1992.

The following conditions shall apply on the exit of the Unit: –

• Penalty imposed by the competent authority would be paid and in case an appeal against an
  order imposing penalty is pending, exit shall be considered if the unit has obtained a stay
  order from competent authority and has furnished a Bank Guarantee for the penalty
  adjudicated by the appropriate authority unless the appellate authority makes a specific order
  exempting the Unit from this requirement;
• In case the Unit has failed to fulfil the terms and conditions of the LOA and penal
  proceedings are to be taken up or are in process, a legal undertaking for payment of penalties,
  that may be imposed, shall be executed with the Development Commissioner;
• The Unit shall continue to be treated a unit till the date of final exit.

In the event of a gems and jewellery unit ceasing its operation, gold and other precious metals, alloys,
gem and other materials available for manufacture of jewellery shall be handed over to an agency
nominated by the Central Government at a price to be determined by that agency.
DC may permit a Unit, as one-time option, to exit from Special Economic Zone on payment of duty
on capital goods under the prevailing Export Promotion Capital Goods Scheme under the Foreign
Trade Policy subject to the Unit satisfying the eligibility criteria under that Scheme.
Depreciation norms for capital goods shall be as given in sub-rule (1) of rule 49 of the SEZ Rules
The units opting out from the SEZ shall execute a legal undertaking (in form L)

Ans. The unit, as per Rule 74A, may opt out of the SEZ by transferring its Assets and Liabilities to
another person by way of transfer of ownership including sale of SEZ units subject to following
conditions: –

• The unit has held a valid LOA as well as lease of land for not less than a period of 5 years on
  the date of transfer
• The unit has been operational for a minimum period of 2 years after the commencement of
  production as on the date of transfer
• Such sale or transfer transactions shall be subject to the approval of the Approval Committee
• The transferee fulfils all eligibility criteria applicable to a unit
• The applicable duties and liabilities, if any, shall stand transferred to the transferee unit which
  shall be under obligation to discharge the same on the same terms and conditions as the
  transferor unit.

Ans. Although both EOUs and SEZs, were initiated to boost exports, there are differences between
the two. An EOU can be set up anywhere in the country, provided it meets the scheme’s criteria. On
the other hand, an SEZ is a specially demarcated enclave that is deemed to be outside the Customs
jurisdiction and therefore, a foreign territory. Thus, any sale made from an SEZ to DTA is considered
as import for the DTA unit. Moreover, any supply from DTA to an SEZ is considered as export. On
the other hand supplies from DTA to an EOU are considered as deemed exports.
Being a clearly demarcated area, there is substantial control over the physical movement of goods to
and from SEZs, but the same cannot be said about EOUs. In terms of the fiscal treatment, SEZs are
zero rates and hence exempt from payment of GST while in the case of EOUs, the principle of refund
of GST paid is applicable.
Minimum investment in plant and machinery and building is Rs 1 crore for EOUs. This should be
before commencement of commercial production, there is no such limit for SEZ

Ans: A new para 11B was inserted in the SEZ Rules vide Notification dated 06.12.2023 for the
demarcation of non-processing area (NPA) within an IT/ITES SEZ. The purpose of this rule was to
provide flexibility in utilisation of the vacant spaces in the SEZ. The key aspects (details in Instruction
115 dated 9.4.24) of the notification of NPA are the following:

• NPA notification has to be approved in the Board of Approval
• Only complete floors can be notified as an NPA
• Appropriate access control mechanisms must exist between the NPA and processing area of
  the SEZ.
• The tax benefits to be repaid by the developer are the proportionate portion of the built up
  area of the NPA to the processing area as well as all benefits for creation of social or
  commercial infrastructure to be used by both NPA and SEZ units.
• The processing area has to remain at atleast 50% of the total area after the notification of NPA