NEW DELHI: Ministry of Commerce and Industry on December 6, 2023 amended the Special Economic Zones Rules-2006, which now permit demarcation of a portion of the built-up area within an SEZ unit on a floor-by-floor basis as a non-processing or non-SEZ area.
According to the new amendment the board of approval, on request of a developer of an Information Technology or Information Technology enabled services Special Economic Zones (SEZ), may, permit demarcation of a portion of the built-up area as a non-processing area.
A non-processing area must consist of a complete floor. Part of a floor will not be demarcated as a non- processing area. It will be permitted only after repayment, without interest by the developer. Demarcation of a non-processing area will not be allowed if it results in decreasing the processing area to less than 50 per cent of the total area or less than 50,000 sq meters area for category A cities, 25,000 sq meters area for category B cities and 15,000 sq meters area for category C cities.
“This progressive reform is a significant step in the ongoing efforts to increase occupancy within IT SEZ Parks, boosting economic activity and creating more jobs. This will help us now bring together businesses that focus on both the export and domestic market, under one roof,” said Ramesh Nair, CEO, Mindspace Business Parks REIT.
“Currently, our SEZ occupancy levels are around 80%, and this amendment will further elevate the attractiveness of our 20 million sa ft premium grade-A SEZ office spaces,” said Aravind Maiya, chief executive officer, Embassy Office Parks REIT.
According to Vivek Rathi, national director (Research), Knight Frank India, this revision in SEZ rules will infuse new office supply. The adaptability provided by floor-wise denotification offers various leasing prospects and will contribute to increased office occupancy rates in such SEZ assets.
“The recent amednment to the IT SEZ policy in India paves the way for a harmonious co-existence of SEZ and non-SEZ entities within a unified campus, enhancing the ease of doing business for corporate, developers an investors, said Sanjay Dutt, managing director & CEO, Tata Realty.
