Para 2 - Criteria for approval - Scheme to develop, operate and maintain special economic zones under section 80-IA of Income-tax Act read with rule 18C(2) of Income-tax Rules

2. Criteria for approval Proposals for setting up SEZ in the public/private/joint/State sector are required to meet the following conditions : ( i ) Minimum size of the SEZ shall not be less than 1000 hectares. This would however, not apply to existing EPZs converting into SEZs as such or for notifying additional area as a part of such SEZ or to product specific SEZs. ( ii ) The SEZ and units therein shall abide by local laws, rules, regulations or bye-laws in regard to area planning, sewerage disposal, pollution control and the like. They shall also comply with industrial and labour laws and such other laws/rules and regulations as may be locally applicable. ( iii ) Such SEZ shall make adequate arrangements to fulfil all the requirements of the laws, rules and procedures applicable to such SEZ. ( iv ) Only units approved under the SEZ Scheme would be permitted to be located in these SEZs. At least 25% area of the SEZ shall be used for developing industrial area for setting up of such units. ( v ) The predominant objective of development of a SEZ would be to create infrastructure which would facilitate setting up of industrial area for units therein as indicated in para ( iv ) above.