Para b - Model State SEZ Act - State Policies

MODEL STATE SEZ ACT Preamble The (Name of the State) State SEZ Act, 2002 An Act to provide for the operation, maintenance, management and administration of a Special Economic Zone (Zone) by a person in the State of (Name of the State). Whereas, Government of India has notified a Special Economic Zone Scheme (SEZ Scheme) to develop industrial enclaves to provide world class industrial environment; Whereas, to attract investment in the development of Special Economic Zone, various incentives have been provided; Whereas, it is necessary to provide for various provisions to promote and assist the rapid and orderly establishment, growth and development of industries in the Special Economic Zones; And whereas for the purpose of administering the Zone, it is necessary to constitute a Board and Authority; And whereas it is expedient to provide for all these and other matters connected therewith; The Act is enacted by the Legislative Assembly of the State of (Name of the State) in the ____ year of the Republic of India as follows:- Preliminary 2.1 Short title, extent and commencement This Act may be called the (Name of the State) State SEZ Act, 2002. It extends to the whole of the State of (Name of the State). It shall come into force from the date as is specified by the Government by issue of notification in Government Gazette. 2.2 Application All legislation/Acts/Rules/Regulations in force in (Name of the State) shall apply to the Zone. This Act shall apply to the Zones set-up and/or developed under this Act. In the event of contradictions/conflicts between the provisions of existing acts and the Act, provisions of the Act shall supersede in the matters relating to the Zone. 2.3 Definitions In this Act, unless there be something repugnant in the subject or context:- “Act”, means the (Name of the State) State SEZ Act, 2002. “Authority”, means the authority constituted under provisions of section 6 “Board”, means the zone board constituted under provisions of section 4 “Committee”, means Unit Approval Committee constituted under provisions of section 5 “Developer”, means a person or body of persons, company, firm and such other private or Government undertakings, who develops, builds, designs, organises, promotes, finances, operates and/or maintains and/or manages a part and/or whole of the infrastructure(s) and other facilities of the Zone and notified accordingly by the Government of India or the Government as the case may be. “Development Commissioner”, means the officer appointed by Government of India, to perform the functions/power/authority of Development Commissioner under this Act. “GOI”, means Government of India. “Government” or “GoM”, means the Government of (Name of the State). “In-principle approval”, means the approval given by the Government of India for the development of the Zone. “Officer”, means an employee of the Government deputed to the Zone to discharge specified functions and duties. “Regulation”, means the regulations made under this Act. “Secretary”, means Secretary to the Government of (Name of the State). “Special Economic Zones (SEZ)”, means a geographical area declared and notified as Special Economic Zone by Government of India (GOI). “Unit”, means a unit/enterprise in whole or part, which occupies space within Zone for carrying out its approved business. “Zone”, means Special Economic Zone constituted from and/or develop within the specified area under provisions of this Act. For Andhra Pradesh “Act”, means the Andhra Pradesh SEZ Act, 2002. “Commission”, means Andhra Pradesh Electricity Regulatory Commission constituted as per the provisions of Andhra Pradesh Electricity Reform Act, 1998 “Government” or “GoM”, means the Government of Andhra Pradesh. “Secretary”, means Secretary to the Government of Andhra Pradesh. Zone 3.1 Establishment of the Zone Any person duly authorized by Government of India may develop, finance, operate, maintain, manage and administer a Special Economic Zone in the State of (Name of the State), as per the guidelines/notifications/directions of the Government of India in this regard. 3.2 Zone Limit For the purpose of this Act, the area within the limits specified by the Government of India shall constitute the Zone. Board There shall be a board constituted for the Zone as notified by Government of India. The composition of the Board shall be as per the provisions made in this regard by Government of India 4.1.1 Functions and powers of the Board In addition to the powers and functions granted by Government of India to the Board, the Government grants/assigns following functions: Co-ordination with concerned Revenue authorities for preparation and maintenance of land records of the Zone in consonance with provisions of (Name of the State) Land Revenue Code. Registration of births and marriages and deaths as per the provisions of Registration of Marriages Act and Registration of Births and Deaths Act. Oversee the compliance of the approved master plan, approve any changes if required or requested by the Developer and provide guiding principles for town planning and urban development standards. Appoint or constitute such number of committees as may be necessary to perform the day-to-day management functions of the Zone and oversee their functioning. Resolve commercial disputes between the services providers and the consumers within the Zone. The procedure for dispute resolution shall be as prescribed by Regulation. Delegate powers to the Development Commissioner of the Zone, if deemed appropriate and necessary Any other functions and powers as may be notified by the Government Office of the Development Commissioner There shall be an Office of the Development Commissioner in the Zone as notified by Government of India. Government shall nominate officers from the following departments to assist the Development Commissioner. Labour Environment Pollution Industries Sales tax Any other department as may be necessary If deemed necessary, Government may authorise an officer of the Zone to discharge functions under any Act. Such appointed officers shall report to the Development Commissioner on granting approvals, clearances, compliances and such other matters as may be notified by the Government, pertaining to their respective departments. The officers shall exercise such authorities and functions as may be prescribed by Regulations. 5.1 Unit approval There shall be a committee as notified by the Government of India In addition to the functions prescribed by the Government of India, the committee shall grant all local and State level clearances/approvals/license/registration/for setting up of an Unit within the Zone, covering the following: Environment clearance for site No objection certificate/consent for establishment under Water (Prevention Control of Pollution) Act, 1974 and Air (Prevention Control of Pollution) Act, 1981 Site clearance on behalf of Factories and Boilers Inspectorate Approval of factory plan under Factories Act, 1948 License for running and operating the Unit, if required Registration of Boilers on behalf of Chief Inspector of Boilers Power load approval, if required Any other approval so notified or required 5.2 Committee Development Commissioner of the Zone shall be the Chairman of the Committee. Members of the Committee, in addition to those notified by the Government of India shall be: Officer from Labour Department nominated to the Office of Development Commissioner Officer from Environment Department nominated to the Office of Development Commissioner Officer from Industries Department nominated to the Office of Development Commissioner Officer from Sales Tax Department nominated to the Office of Development Commissioner If required, Development Commissioner may invite officers from any department of the Government as a special invitee to represent Government departments not represented in the Committee. In cases, where the Development Commissioner of the Zone is vested with powers to take independent decisions, on such matters and issues the Committee shall act as advisor to the Development Commissioner. 5.3 Functions of the Committee In addition to the functions notified by the Government of India, the Committee shall grant all State and local level clearances/licenses/registration/allotments/enrolments/permissions to the Units as notified by the Government It shall supervise and monitor various licenses/permissions/clearances granted by it. It can appoint an agency notified by the Government to supervise and monitor various licenses/permissions/clearances granted by it. In case of non-compliance of any such clearances/licenses/permissions by the Unit, the committee shall take appropriate actions as per the relevant applicable laws. The Committee may call for any information required to monitor the various licenses/permissions/clearances granted by it. The detailed procedure for obtaining the clearances/approval under 5.3 sub-clause (1) of the Act shall be as prescribed by Regulations. Authority 6.1 Notification of the Zone as an ‘Industrial Township Area’ The Zone as specified by the Government of India and defined in Section 3.2 of this Act shall be specified to be an industrial township area under the proviso to clause (1) of Article 243Q of the Constitution of India. If the Zone is only having provisions for industrial area and is not providing for residential/commercial areas, the notification under sub-clause (1) section 6.1 may not be issued. On being notified as an ‘Industrial Township Area’, an Authority shall be constituted for the Zone by the Developer of the Zone for carrying out development, operation, management and maintenance functions of the Zone as laid down in Section 6.1.2 of the Act. On being declared an ‘Industrial Township Area’, the Zone shall cease to be under the jurisdiction of any other municipal corporation, municipal council, gram panchayat or any other local body as the case may be, constituted under the applicable legislation. (5) The Authority shall be headed by a nominee of the Developer. 6.1.1 Composition of Authority The Authority shall consist of following members: Nominee of the Developer Nominee of Development Commissioner of the Zone Nominee of Government The nominee of the Developer shall be the Chairman and Convener of the Authority The Chairman, if deems, fit can invite representatives of Units, residents, service providers and other such interest group(s) to the meeting of Authority. The Authority shall meet at such places and at such times as may be deemed necessary. 6.1.2 Functions of the Authority The Authority shall perform the following functions, namely– Erection of substantial boundary marks defining the limits of or any alteration in limits of the Zone. Ensuring that the Units and residents have access to the following basic and essential infrastructure, namely — Public Streets, bridges, sub-ways, culverts, causeways and the like Public transportation facilities Power supply Water supply Adequate drains, drainage facilities and public latrines, water-closets, urinals and similar conveniences Facilities for the collection and treatment of sewerage Collection and management of Municipal Solid Waste Lighting of public streets, municipal markets and other buildings vested in the Authority Maintenance of public monuments, open spaces and other property vesting in the Authority Ensuring that the Units and residents have access to the following social infrastructure, in accordance with the growth of the Zone and requirements of the Units and residents, namely — Public Hospitals and dispensaries Ambulance service Places for the disposal of the dead and disposing of unclaimed dead bodies Public markets, slaughter houses Schools for primary, secondary and higher education Maternity and infant welfare houses and centres Public parks, gardens, playgrounds and recreational facilities Maintaining a fire-brigade equipped with suitable appliances for the extinction of fires and the protection of life and property against fire Reclamation of unhealthy localities, the removal of noxious vegetation and the abatement of all nuisances Conducting public vaccinations in accordance with the provisions of the Bombay District Vaccination Act, 1892 Prevention and checking the spread of dangerous diseases Removal of obstructions and projections in or upon streets, bridges and other public places Naming or numbering of streets and of public places vesting in the Authority and the numbering of premises Setting, collecting and appropriating charges and granting these rights to the Developer or his agent or any other person. Monitoring town planning standards set by the Board Removal of unauthorised construction and encroachments Such other functions as may be assigned by the Board The Authority shall work in close co-ordination with the Development Commissioner. Single window provisions The Government may — Prescribe a common application form for two or more laws by Regulations Authorise Development Commissioner of the Zone to exercise powers of the Government or a body subordinate to the Government, by Regulations Notify an Officer and/or agencies for carrying out inspection under various laws by Regulation Exempt from one or more provisions of any law in force Frame separate rules and regulations under any law Prescribe a single return for reporting under two or more laws Fiscal Benefits The transaction between the domestic tariff area and the Zone shall be treated as exports and imports as notified by the Government of India. All such exports from domestic tariff area to the Zone shall be exempted from all such taxes, levies, duty, cess etc. as applicable to exports. All sales and transactions between Zones and/or within the Zone would be exempt from all taxes, cess and levies as per the following- — Purchase Tax — Specified sales (Lease Tax) in respect of lease of goods — Stamp Duty — Registration tax — Sales Tax — Octroi — Turnover Tax — Any other tax, cess, duty or levies notified by the Government The procedure for obtaining benefits under section 8 shall be as prescribed by Regulation. For Andhra Pradesh 50% Exemption from payment of stamp duty for transfer of land meant for industrial use in the Zone. 100% Exemption from payment of Registration fee for transfer of lands in the Zone. Exemption from Levy of Sales Tax on the inputs supplied by the Units within the Zone and from the Domestic Tariff Area to the Zone Exemption from Levy of tax on Entertainment in the Zone. Exemption from Levy of Tax on Luxuries in the Zone. Provision of services 9.1 Freedom to provide services and charge tariff Notwithstanding anything in any other Act/Agreement/License, the Developer/Agent of the Developer of the Zone shall be free to develop, construct, install, operate, manage, and maintain any or all of the following services for the purpose of providing services to Zone, without any license, namely — Generation and supply of electricity Water extraction, treatment, transmission and distribution Waste water treatment and solid waste management Provision of port related services Provision of roads, bridges highways Any other services as may be prescribed by Regulation Notwithstanding anything contained in any other Act, the provider of the facility/services under sub-section (1) to the Zone shall be free to set charge/levy fee for providing such services. 9.2 Generation and supply of electricity The following provisions shall apply to the generation and supply of electricity in the Zones, namely — The Developer and/or his agent shall be deemed to have permission to supply electricity to the Zone and develop the distribution network for the same. Developer and/or his agent shall be deemed to be a “licensee” under section 3 sub-section (1) of Indian Electricity Act, 1910. Developer and/or his agent shall be deemed to be permitted to generate electricity for the purpose of supplying it within the Zone by the competent Government under sections 43-A(1) and 44 of Electricity Supply Act, 1948. However, the deemed permission under sub-clause (iii) shall be subject to section 44(2A) of Electricity Supply Act, 1948, if applicable. Any person shall be free to supply electricity to the Zone and for such purposes he shall be deemed to be permitted under section 43-A(1) of Electricity Supply Act, 1948. Any person generating electricity in the Zone shall be allowed to supply electricity to the State Electricity Boards (SEB) as per Government approvals and terms and conditions agreed by the supplier and the SEB. For the provision of products/services of infrastructure as defined in this Act, relevant Acts, guidelines, rules and regulations prevalent in India shall be applicable for quality of product/service and safety requirements. Any sale of electricity to the Zone shall be exempted from payment of Electricity duty. 9.3 Water extraction, treatment, transmission and distribution The Developer and/or his agent shall be permitted to set up systems and facilities for water extraction, treatment, transmission and distribution within the Zone, provided the applicable service standards are met. The Developer and/or agent of Developer shall be permitted to set and collect tariffs for the supply of water within the Zone. 9.4 Wastewater and Solid Waste Management and Treatment The Developer and/or his agent shall be permitted to set up systems and facilities for wastewater and solid waste management and treatment in the Zone, provided the applicable service standards are met. The Developer and/or agent of Developer shall be permitted to set and collect tariffs for the management and treatment of wastewater and solid waste in the Zone. 9.5 Ports In case the port is part of the approved SEZ project plan, — The Developer and/or agent of the Developer shall be permitted to develop, operate and maintain a minor port, whose approving authority is the Government, as part of the Zone for the landing of goods for use in the Zone and for the shipping of goods from the Zone. The Developer and/or agent of the Developer shall be permitted to handle/landing of other cargoes (not meant for the Zone) as per the terms and conditions prescribed by Regulations by (Name of the State) Maritime Board. The Developer and/or agent of the Developer shall be permitted to set and collect tariffs from the vessels entering in the minor port and on the goods landed and shipped at the port, as per the directions of the (Name of the State) Maritime Board from time to time in this regard. 9.6 Roads, bridges and transportation services The Developer and/or any of his agents shall be permitted to develop, operate and maintain the road network, bridges, transportation services and any transportation system under the State jurisdiction within the Zone and to charge and retain fee/toll for the same. Labour 10.1 Lay-off, retrenchment, closure and compensation In section 25A(I) of the Industrial Disputes Act, 1947, following clause is added, namely: “(c) To industrial establishments set up in the Zone notified by the Government of India. In section 25K(I) of the Industrial Disputes Act, 1947, following exclusion shall be added, namely: “Exclusion: For the purpose of industrial establishments in the Zone Chapter V-B of Industrial Disputes Act shall not apply”. 10.2 Declaration of the Zone as a Public Utility Industrial establishment set up in the Zone shall be declared as “public utility services” as per the provisions of the Industrial Disputes Act, 1947, under sub clause (vi) of clause (n) of Section 2. 10.3 Amendment to Contract Labour (Regulation and Abolition) Act, 1970 In section (2) (e) (iii) of the Contract Labour (Regulation and Abolition) Act, 1970, the following shall be added, namely: After the word is “carried on”…….. it shall be read “any place excluding a Special Economic Zone, notified by Government of India, where any industrial activity, trade, business or any such occupation is carried out”. 10.4 Amendment to Trade Unions Act, 1926 In the Trade Unions Act, 1926, in section 22, after the existing proviso, the following proviso shall be added, namely: “Provided further that where the employer is the Developer or the Unit established in the Zone, a trade union or its office-bearers in respect thereof shall consist only of ordinary members, notwithstanding anything contained in clause (e) of section 6”. 10.5 Amendment to Employees Provident Fund Miscellaneous Provisions Act, 1952 The following shall be inserted in section 2(f) of the Employees Provident Fund Miscellaneous Provisions Act, 1952 “Exclusion: Provided the employee is engaged by the contractor having Provident Fund code number allotted by the Commissioner of Provident Fund for rendering services to an industrial establishment in the Zone”. 10.6 Amendment to Employee State Insurance Act, 1948 “Notwithstanding the provisions of section 2(17) sub-section (i) of Employee State Insurance Act, 1948, the establishments in the Zone shall not be liable in respect of employees employed indirectly through an immediate employer/contractor provided the immediate employer/contractor have an ESI code number themselves”. 10.7 Amendment to Factories Act, 1948 Section 66 of Factories Act, 1948 shall not be applicable to industrial establishments in the Zone. 10.8 Non-applicability of laws The following Act shall not apply in the Zone: Bombay Industrial Relations Act, 1946 shall not apply to the Zone. Power to make Regulations The Government is vested with powers to make Regulations on any subject relating to Special Economic Zones under the Act or any other Act of (Name of the State).