Rule 11 - Processing and non-processing area - Special Economic Zones Rules, 2006

11. Processing and non-processing area . - 9 [(1) The Development Commissioner shall demarcate the area and issue demarcation order under the provision of section 6 , specifying the survey numbers and boundaries of area of the Special Economic Zone as specified in the notification issued under rule 8 .] 1 [(2) The processing area and Free Trade and Warehousing Zone shall have specified entry and exit points and be fully secured by taking such measures as approved by the Board of Approval.] 10 [Provided that in case of a Special Economic Zone for information technology or information technology enabled services or electronic hardware or biotechnology, the Development Commissioner shall approve such measures and inform the 12 [ Approval Committee ] accordingly: Provided further that in case the developer proposes to create two hundred and forty centimeter high wall with top sixty centimeter being barbed wire fencing and single entry and exit point, no separate approval shall be required under this sub-rule.] (3) The Development Commissioner shall ensure compliance of the requirements of sub-rule (2). 5 [(4) The persons authorised by the Development Commissioner shall only be allowed to enter the processing area of a Special Economic Zone;] (5) The land or built up space in the processing area or Free Trade and Warehousing Zone shall be given on lease only to the entrepreneurs holding a valid Letter of Approval issued under rule 19 and the lease period shall not be less than five years but notwithstanding any other condition in the lease deed, 2 [the lease rights would cease to exist in case of the expiry or cancellation of the Letter of Approval]. Provided that the Developer may, with the prior approval of the Approval Committee, grant on lease land or built up space, for creating facilities such as canteen, public telephone booths, first aid centres, cr che and such other facilities as may be required for the exclusive use of the Unit. (6) The developer holding land on lease basis shall assign lease hold right to the entrepreneur holding valid Letter of Approval. (7) Any transfer by way of sub-lease or any other mode by the Developer shall be valid only if the same is made to a person holding a valid letter of approval issued by the Development Commissioner. (8) The Developer may allot land in the processing area on lease basis to a person desiring to create infrastructure facilities for use by the prospective Units. (9) The Developer shall not sell the land in a Special Economic Zone. 13 [ (9A) The Developer shall ensure sufficient and adequate space, as per the applicable Central Public Works Department norms, for the Office of Development Commissioner and Customs Officers posted in the Special Economic Zone. ] 3 [(10) No vacant land in the non-processing area shall be leased for busi ness and social purposes such as educational institutions, hospitals, hotels, recreation and entertainment facilities, residential and business complexes, to any person except a co-developer approved by the Board: Provided that the developer or co-developer may lease the completed in frastructure along with the vacant land appurtenant thereto for such pur poses: 8 [***] 6 [Provided also that the Developer or Co-Developer shall strive to provide adequate housing facilities not only for the management and office staff but also for the workers of the Special Economic Zones Units.] (11) The Special Economic Zone shall be deemed to be a port, airport, inland container depot, land customs station under section 7 of the Customs Act in accordance with the provisions of section 53 from the date notified in this behalf: Provided that Specified Officer may designate any area or area(s) in the Special Economic Zone as an area for loading and unloading of import or export cargo: Provided further that in case the said port, airport, inland container depot, land customs station area is to be used for loading and unloading of import or export cargo meant for Domestic Tariff Area importers and exporters also, storage for such cargo shall be in a separate enclosure and deliveries for such cargo shall be allowed by the Authorized Officer of the Special Economic Zone based on Bill of Entry, assessed by the Assistant or Deputy Commissioner of Customs having jurisdiction over the said Customs Station. 7 [Provided also that addition or inclusion of any land to an existing Special Economic Zone , where such land contains a port, manufacturing unit, or structures in which no commercial, industrial or economic activity is in progress, then such Special Economic Zone shall not be eligible for any duty benefits in respect of the pre-existing structures but any additions or up-gradations to such existing ports, manufacturing units, or structures after their addition or inclusion in a Special Economic Zone shall be eligible for the fiscal incentives as applicable for a new infrastructure in a Special Economic Zone and also the authorised operations being carried on in such infrastructure shall be eligible for benefits as provided for under the Special Economic Zone Act and rules.] 11 [(12) The Central Government may lay down guidelines for development, operation and maintenance of Special Economic Zones] ********** Notes: 1. sub-rule (2), has been substitutedvide F.No. 2/633/2006-SEZ dated 16/3/2007 2. IN sub-rule (5), for the words, the lease period shall be co-terminus with the validity of Letter of Approval , has been substituted, vide F.No. 2/633/2006-SEZ dated 16/3/2007) 3. Sub Rule 10 has been substituted with effect from 10-8-2006 vide notification no. 470(E). 4. In sub-rule {10), for the second proviso, has been substituted vide F.No. 2/633/2006-SEZ dated 16/3/2007 5. Sub Rule (4) has been substituted vide notification no. G.S.R.72 (E).- dated 3-2-2009 , earlier it was read as: The authorized persons shall only be allowed to enter the processing area of a Special Economic Zone. 6. Third clause after second clause to sub rule (10) has been inserted vide notification no. G.S.R.72 (E).- dated 3-2-2009 7. Inserted vide Notification No. C.2/1/2013-SEZ-SEZ dated 12/08/2013. 8. Omitted vide C.1/2/2014-SEZ - GSR 5 (E) - Dated 2-1-2015, before it was read as, 4 [Provided further that infrastructure for business or social purposes in the Special Economic Zone, as may be approved by the Board, shall be eligible for exemptions, concessions, drawback and any such infrastructure created in addition or in excess thereof shall not be eligible for any exemptions concessions and drawback.] 9. Substituted vide Notification no. G.S.R.501(E), dated 14-6-2010 , before it was read as The Development Commissioner of the concerned Special Economic Zone shall be the authority for demarcating the areas falling within the Special Economic Zone under the provisions of section 6. 10. Inserted vide Notification no. G.S.R.501(E), dated 14-6-2010 11. Inserted vide G.S.R. 562(E) - Dated 3-8-2009 12. Substituted vide Notification No. G.S.R. 909(E) dated 19-09-2018 before it was read as Board 13. Inserted vide Notification No. G.S.R. 909(E) dated 19-09-2018