Purvanchal’s (UP East) First SEZ

A private developer Hari Fertilisers Ltd got the approval from the Union Ministry of Commerce for an SEZ at Sahupuri (about 15-km from Varanasi) in Chandauli. But the UP State Industrial Development Corporation (UPSIDC) is yet to get the land for development of Special Economic Zone (SEZ) in between Varanasi and Bhadohi.It will be the first SEZ in Purvanchal (Eastern Uttar Pradesh) for handicrafts, handloom silk and carpet that see an annual export of Rs 4000-crore.


The multi-service SEZ will be situated at Sahupuri on 100-hectare land in Chandauli district. The Central government notified 100 hectares of Sahupuri area under multi-service SEZ, which has been published in the Gazette of India dated on February 23, 2010, RP Wahi, chief executive officer and administrator. The land for this purpose is already in possession of the developer.

According to him, the SEZ is being set up with an estimated investment of about US dollar 500 million for providing various services like trading, warehousing, research and development, information technology, educational services, hospital services, tourism, and other services. The target sectors are education, IT, healthcare, tourism and warehousing, That the master plan is likely to be completed in next three months.

Some Info:

The Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 which received Presidential assent on the 23rd of June, 2005. After extensive consultations, the SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February, 2006, providing for drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments.
The main objectives of the SEZ Act are:

• Generation of additional economic activity
  
• Promotion of exports of goods and services
  
• Promotion of investment from domestic and foreign sources
  
• Creation of employment opportunities
  

Development of infrastructure facilities
The SEZ Rules provide for different minimum land requirement for different class of SEZs. Every SEZ is divided into a processing area where alone the SEZ units would come up and the non-processing area where the supporting infrastructure is to be created.
The SEZ Rules provide for:

• Simplified procedures for development, operation, and maintenance of the SEZs and for setting up units and conducting business in SEZs
  
• Single window clearance for setting up of an SEZ
  
• Single window clearance for setting up a unit in an SEZ
  
• Single window clearance on matters relating to central as well as state governments
  
• Simplified compliance procedures and documentation with an emphasis on self certification
  
• Approval mechanism and Administrative set up of SEZs
  (Source: Ministry of Commerce, GOI)