Para 3 - Procedure 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

3. Procedure for approval 3.1 Applications (10 copies) indicating the name and address of the applicant, status of the promoter (whether individual/private company/State Government NRIs etc.) along with a project report covering the following particulars shall be submitted to the Chief Secretary of the State : ( i ) Location of the proposed zone with details of existing and proposed infrastructure, ( ii ) Area of the proposed SEZ and its area distance from the nearest Sea Port/Airport/Rail/Road head etc. ( iii ) Financial details including investment proposed, mode of financing the project and viability of the project. ( iv ) Details of foreign equity and repatriation of dividends etc., if any. ( v ) Whether the zone will allow only certain specific industries or will be a multi-product zone. 3.2 The State Government shall, forward it along with their commitment to the following, to the Department of Commerce, Government of India : ( i ) The area incorporated in the proposed Special Economic Zone is free from environmental prohibition; ( ii ) Water, Electricity and other services would be provided as required; ( iii ) Full exemption in electricity duty and tax on sale of electricity for self-generated and purchased power; ( iv ) To allow generation, transmission and distribution of power within SEZ ; ( v ) Exemption from State Sales Tax, octroi, mandi tax, turnover tax and taxes, duty, Cess, levies on supply of goods from Domestic Tariff Area to SEZ units; ( vi ) For units inside the Zone, the powers under the Industrial Disputes Act and other related Acts would be delegated to the Development Commissioner. ( vii ) The Zone will be declared as a Public Utility Service under Industrial Disputes Act. ( viii ) Single point clearances system would be provided to the units in the Zone under State Laws/Rules. 3.3 The proposal incorporating the commitments of the State Government shall be considered by the Board of Approval (BOA) as notified vide Notification No. 14/1/2001-EPZ, dated 7-8-2001. 3.4 On acceptance of the proposal by the BOA, the Department of Commerce will issue a Letter of Permission to the applicant; hereafter referred to as "developer". 3.5 Developer could undertake activities required for the development of the zone as per the approval granted by BOA. Other entities, as approved by the BOA, may also undertake approved development activities of the SEZ provided that commercial, residential and recreational facilities shall be approved only if the developer has at least 26% equity in such entities. 3.6 In case of converted EPZ into SEZ approval for development of requirements in infrastructure will have to be obtained from BOA on case to case basis. Para 3.5 shall mutatis mutandis apply to creation of new infrastructure in the converted SEZs.