Wanna float an SEZ? Shell out Rs 1k cr

NEW DELHI: In a bid to rule out special economic zone (SEZ) applications from financially unsound entities, the board of approval (BoA) for SEZs has fixed minimum investment and net worth criteria for promoter firms. BoA, at its meeting on Thursday, also drew up the list of authorised operations for SEZs which would only qualify for exemptions and concessions.

To qualify for developing a multi-product SEZs, the net worth of the applicant has to be at least Rs 250 crore and the minimum investment in the project at Rs 1,000 crore. For sector-specific SEZs the applicant’s net worth has to be a minimum of Rs 50 crore, while the minimum investment criteria is Rs 250 crore. For applying for IT SEZs, the net worth of the applicant has to be Rs 100 crore.

Addressing a press conference, commerce special secretary GK Pillai said: “The minimum net worth criteria will take care of apprehensions that even a pan-wallah can apply for setting up an SEZ.”

The authorised operations for IT, biotech and gems and jewellery SEZs include roads, housing apartments, convention centre, cafeterias and restaurant, air conditioning, telecom and other communication facilities, electrical, gas and piped natural gas distribution network and recreational facilities.

Sector-specific SEZs will be allowed to have additional operations including hotels, schools and educational and technical institutes. Multi-product SEZs will also be allowed to have ports, airports and golf-courses.Sector-specific SEZs will be allowed to have 7,500 houses, hotels with a total of 100 rooms, a 25-bed hospital and schools and other educational institutions over 25,000 square meters.

Multi-product SEZs will be allowed 25,000 houses, a 250-room hotel and a hospital with 100 beds. Developers will not get tax concessions for any construction beyond the specifications, Mr Pillai said. They will also not be allowed to defy the master-plan which clearly lays down what percentage of the zone should be demarcated for various facilities.