MAHARASHTRA INDUSTRIAL DEVELOPMENT CORPORATION SPECIAL ECONOMIC ZONE
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1 MAHARASHTRA INDUSTRIAL DEVELOPMENT CORPORATION SPECIAL ECONOMIC ZONE Maharashtra Industrial Development Corporation is set up with an objective of achieving balanced industrial development in Maharashtra. The MIDC has been declared as an agency of the state government for carrying out the activities within the frame work of the MID Act and the MID Rules. MIDC has developed 229 industrial areas in various parts of Maharashtra, which is admeasuring about m 2. With a view to enable the entrepreneurs to compete in the world market, by receiving various tax benefits, the Central Government has decided to set up Special Economic Zones. as follows :- The minimum area of the Special Economic Zone of different categories shall be Sr.No. Type Minimum Area of SEZ 1. Multi product SEZ 1000 Ha. 2. Multi Services SEZ 100 Ha. 3. Sector Specific SEZ 100 Ha. 4. Port Based 100 Ha. 5. Airport Based 100 Ha. 6. Electronic Hardware and Software including IT enabled services SEZ 10 Ha. (and min. built- up area of 1 Lakh sq.mt. for IT) 7. Bio Technology 10 Ha. ( and min. built up area of 40,000 Sq.mtr.) 8. Gems & Jewellery / Handicraft 10 Ha. ( and min. built- up area of 50, Non Conventional energy including solar energy equipment cell.. sq.mt.) 10 Ha. ( and min. built- up area of 40,000 sq. mtrs. for non conventional energy sector, including solar energy equipment/ cells but excluding a SEZ set up for non conventional energy production and manufacturing 10. Free Trade warehousing Zone 40 Ha. (min. built- up area of 1 Lakh Sq.mtr. WHO CAN ESTABLISH SPECIAL ECONOMIC ZONE. 1. A Special Economic Zone may be established either jointly or severally by the Central Government, State Government or any person for manufacture of goods or rendering services or for both or as a Free Trade and Ware housing Zone. 2. The obligatory requirement of minimum investment for establishing sector specific zone is Rs.250 Cr. or Rs.50 Cr. Net Worth Criteria. 3. The obligatory requirement of minimum investment for establishment Multi Product SEZ is Rs.1000 Cr. or Rs.250 Cr. Net Worth Criteria.
2 APPLICATION PROCEDURE 1. The Person/ organization intending to establish SEZ has to submit an application in prescribed format to State Government with all relevant documents. It should include details of land for proposed SEZ, distances from nearest Port/ Airport / Railway Station/ Roads, Investment details, Source of funding, Details of Foreign Investment (if any), etc. 2. The State Government shall forward the proposal received by them to the Board of Approval (Deputy Secretary, Ministry of Commerce and Industry, Department of Commerce, Udyog Bhavan, New Delhi ) along with its recommendations. The State Government at the time of recommending the proposal shall undertake to provide the facilities and incentives related to environmental issues, water, electricity and other essential infrastructure facilities. The State Government shall also express its readiness to delegate the powers to the Development Commissioner, under the Industrial Disputes Act 1947, in relation to the workmen employed by the developer. Also the state should undertake to provide exemption from the state and local taxes, levies and duties as per SEZ Rules State Government should provide single window clearance mechanism under the State Acts and Rules. PROCEDURE OF BOARD OF APPROVAL FOR SPECIAL ECONOMIC ZONE. While approving Special Economic Zone, the Board of Approval accord sanction in following three steps. 1) In- Principle Approval Board of Approval grants In- Principle approval in cases where the SEZ Developer is not having the land in its possession either by ownership or lease. 2) Formal Approval Once the SEZ Developer is in possession of the land either by ownership or lease, and submits the details of the land to State Govt. and to the BoA and the State Government recommends the case, BoA grants Formal Approval. 3) Notification of SEZ After Formal Approval by BoA, the details of the land (with Survey Nos. and Map) with a certificate from the concerned State Government or its authorized agency stating that the developer have legal possession and irrevocable rights to develop the said area as SEZ and the said area is free from all encumbrances and inspection report of Development Commissioner SEZ, as given in the SEZ Rules are to be submitted to the Department of Commerce & Industry. Thereafter the BoA notifies the SEZ by way of issuance of a notification. No further notification from Ministry of Finance is required. TERMS AND CONDITIONS APPLICABLE TO DEVELOPER OF SEZ 1. It is obligatory for the Developer, to allot plots in Special Economic Zone to those units only which receives Letter of Approval (LoA) from the Development Commissioner.
3 2. Special Economic Zone can be divided in two parts i.e. Processing Zone and Non- Processing Zone. The Processing area is to be used for setting up units for activities, being the manufacture of goods or rendering services or exclusively for trading or ware housing purpose. Whereas Non- Processing Zone can be used to construct residential accommodation/ School / Hospital/ Shopping center for the workers employed in Processing Zone. However the area of Processing Zone should not be less than 50% of total SEZ area. Further it is necessary to secure processing Zone by constructing compound wall. 3. For establishing IT related SEZ it is binding to provide 24 hours uninterrupted power supply internet facilities and centrally air conditioned system. 4. For developing Special Economic Zone it is necessary that the land to acquired should be as far as possible, barren and non irrigated. However, in avoidable circumstances, single crop land can be acquired to a possible. minimum extent. Where as if it is essential to acquire double cropping land, the area so acquired should not be more than 10% of total area of SEZ. BENEFITS AND EXEMPTIONS AVAILABLE TO DEVELOPER IN SPECIAL ECONOMIC ZONE. 1. For establishing SEZ, 100% foreign direct investment is permissible. 2. SEZ developers are entitled for income tax exemption for a block of 10 years out of First 15 years after notification date under section 80-1 (AB) of the Income Tax Act Developer of SEZ may import/ procure goods without payment of import / excise duty / state taxes including Central Sale Tax for the development of SEZ and for, operation and maintenance in only Processing Area. 4. Services provided to the developers / units of Special Economic Zone are exempted from paying service tax subject to fulfillment of certain conditions. 5. Exemption in Minimum Alternate Tax (MAT), only for SEZ units and Dividend Distribution Tax only for SEZ Developer. 6. Supply made to SEZ unit/ Developer is treated as Physical Export as per Custom Act and all the export incentives are eligible to Supplier or Developer / Unit holder subject to fulfillment of certain conditions. 7. All the relevant permissions related to Central/ State Government will be available by Single Window Mechanism. SPECIAL ECONOMIC ZONE BEING DEVELOPED ON THE LAND ACQUIRED BY MIDC. As per relevant policy of Central Government, Special Economic Zones are being established at various places in Maharashtra. MIDC is also developing Special Economic Zones by acquiring lands as well as on the lands already acquired. SEZ s being developed by MIDC is generally classified in four categories as below.
4 1. SEZ developed by MIDC as a Developer :- MIDC it self is developing Special Economical SEZ as a developer due to which MIDC has been accorded the status of SEZ Developer. As a developer under this category MIDC has the responsibility to provide all the essential infrastructure, construction of compound wall around processing zone etc. After developing the SEZ as a Developer MIDC will allot the respective plots in these SEZ at the rates fixed by corporation. List of the SEZ s developed/ being developed under this category is attached vide Annexure I 2. SEZ developed through Public Private Partnership on land acquired by Corporation. In this category tenders are invited from willing parties for development of SEZ on MIDC land and the developer offering highest price for the land is selected for developing Special Economic Zone. The bidder thus selected is considered as Co- Developer. Co- Developer has to provide essential infrastructure facilities. Further after developing Special Economic Zone, Codeveloper has liberty to allot the rates fixed by him. In this category corporation will hold some part of the equity in the project company. List of the SEZ s developed/ being developed under this category is attached vide Annexure II 3. SEZ Developed through Joint Venture Under this category it is decided to develop Special Economic Zone as Joint Venture by executing memorandum of understanding with renowned Private companies. Under this category Special Economic Zone are developed on land already acquired by corporation or by acquiring new lands by the corporation. Major difference between PPP module & Joint Venture module is that in the first category bidder quoting higher amount for the corporations land is selected as co- developer whereas in the second category co-developer is selected through the Memorandum of Understanding. The corporation has the option of holding some equity in the project company. Project company, thus formed will acquire the Developer status for SEZ. This project company develops the Special Economic Zone as well as undertakes marketing of plots in the SEZ. List of SEZ s developed /being developed under this category is attached vide Annexure III. 4. SEZ s to be developed on the plots which are already allotted by the corporation Under this category if plot holders who have already been allotted plots by the corporation are desirous of establishing Special Economic Zone on the plot held by them, corporation being original owner of land issues them Noobjection Certificate by charging appropriate fees. In this category corporation is not related with any of the activities of development of Special Economic Zone and being owner of land corporations parts is restricted upto issuing No- Objection Certificate only.
5 ANNEXURE- I SEZ DEVELOPED BY MIDC 1) Rajiv Gandhi Info- Tech Park, Hinjawadi, Phase III, Pune Sector Specific SEZ for IT/ ITES 1. Location : Village Maan & Bhoirwadi Tal. Mulshi, Dist. Pune 2 Area in Hectares : Ha. 3. Formal Approval : No.F-2/129/2005-EPZ dt Notified on : 07/06/2007
6 SEZ DEVELOPED BY MIDC 2) Shendra, Dist. Aurangabad Sector Specific SEZ for Engineering & Electronic Sector 1. Location : Village Shendra-ban, Tal. & Dist.Aurangabad 2 Area in Hectares : Ha. 3. Formal Approval : No.F-2/133/2005-EPZ dt , & Notified on : 22/12/2006
7 SEZ DEVELOPED BY MIDC 3) Khandala Dist. Satara Sector Specific SEZ for Engineering 1. Location : Village Kesurdi, Tal.Khandala, Dist. Satara. 2 Area in Hectares : Ha. 3. Formal Approval : No.F-2/578/2006-SEZ dt Notified on : 12/11/2008
8 SEZ DEVELOPED BY MIDC 4) Chincholi, Dist. Solapur Sector Specific SEZ for Textile. 1. Location : Village Chincholi, Tal- Mohal,Dist. Solapur. 2 Area in Hectares : 103 Ha. 3. Formal Approval : No.F-2/ 166/2006-EPZ dt (area 195 ha.) & (area 103 ha.) 4. Notified on :
9 SEZ DEVELOPED BY MIDC 5) Addl. Lote Parshuram,Dist. Ratnagiri Sector Specific SEZ for Pharma. 1. Location : Village : Dhabhil Ha. Satvin Ha. Asgani mohalla Ha. Ajgani Ha. Tal- Khed, Dist. Ratnagiri. 2 Area in Hectares : Ha. 3. Formal Approval : No.F-2/477/2006-SEZ dt Notified on :
10 SEZ DEVELOPED BY MIDC 6) Rajangaon,Dist. Pune Sector Specific SEZ for Bio- Tech. 1. Location : Village : Sherul (Kardelewadi) Tal. Dist. Pune 2 Area in Hectares : 30 Ha. 3. Formal Approval : No.F-2/677/2006-SEZ dt
11 SEZ DEVELOPED BY MIDC 7) Phaltan,Dist. Satara Sector Specific SEZ for Engineering. 1. Location : Village : Nandal Ha. Survadi Ha. Tal.Phaltan, Dist. Satara 2 Area in Hectares : Ha. 3. Formal Approval : No.F-1/224/2007-SEZ dt
12 SEZ DEVELOPED BY MIDC 8) Chakan,Dist. Pune Sector Specific SEZ for Engineering. 1. Location : Village : Varale Shinde, Salundra Savardari Tal. Khed, Dist. Pune 2 Area in Hectares : 100 Ha. 3. Formal Approval : No.F-2/676/2006-SEZdt for sector specific R and D sector Change of sector form R and D t Engineering sector vide letter dtd
13 ANNEXURE- II SEZ IN P.P.P. MODE. 1) Nandgaonpeth, Dist- Amravati, Multi-Product SEZ. 1. Location : Village :- Talkhanda Tuljapur Dhamana Narayanpur Ha Ha Ha Ha. Nandgaonpeth Ha. Nemtapur Ha. Savardi Ha. Pandarpur Ha. Taluka & Dist. Amravati. 2 Area in Hectares : 1008 Ha. 3. Bid Evaluation was invited : 16 th July, Name of selected bidder : M/s. Eldeco Infrastructure & properties Ltd. 5. Board approval for Preferred Bidder : 314 th Board Meeting held on 7/9/07 Resolution No Letter of Intent issued : 08/10/ Notified on : 31/10/2008 C:\Users\hemantsankhe\Desktop\Brief Note SEZ.doc
14 SEZ IN P.P.P. MODE. 2) Krushnoor, Dist. Nanded for Sector Specific SEZ for Pharma. 1. Location : Village Krushnoor -150 Ha. Tal- Naigaon bazaar, Dist. Nanded 2. Area in Hectares : 150 Ha. 3. Bid Evaluation was invited : 10/09/ Name of selected bidder : M/s. Parsvnath SEZ Ltd. 5. Board approval for : 325 th Board Meeting Resolution Preferred Bidders No Letter of Intent issued : 01/01/ Notified on : 11/01/2007 C:\Users\hemantsankhe\Desktop\Brief Note SEZ.doc
15 SEZ IN P.P.P. MODE. 3) Kagal, Dist. Kolhapur for Sector Specific SEZ for Pharma. 1. Location : Village :- Kasba Sagaon, Tal- Kagal, Dist. Kolhapur. 2. Area in Hectares : Ha. 3. Bid Evaluation was invited : 16/7/ Name of selected bidder : M/s. Soma Enterprises Ltd. 5. Board approval for preferred bidder : Resolution No of 321 st Board Meeting held on 8/5/08 6. Letter of Intent issued : Formal approval : 5/04/2006 C:\Users\hemantsankhe\Desktop\Brief Note SEZ.doc
16 SEZ IN P.P.P. MODE. 4) Butibori,Dist. Nagpur for Sector Specific SEZ for Pharma. 1. Location : Village :-Pohi, Tal- Hingna, Dist. Nagpur. 2. Area in Hectares : Ha. 3. Bid Evaluation was invited : 27/9/ Name of selected bidder : M/s. Ajanta Projects (India) Ltd 5. Board approval for preferred bidder : 315 th Board Meeting held on 11/10/07 Resolution No Letter of Intent issued : 17/01/ Notified on : 24/12/2008 C:\Users\hemantsankhe\Desktop\Brief Note SEZ.doc
17 SEZ IN P.P.P. MODE. 5) Addl. Latur, Dist.Latur for Sector Specific SEZ for Agro Products. 1. Location : Village- Chincholiraowadi & Khandapur Tal. & Dist. Latur. 2. Area in Hectares : Ha. 3. Bid Evaluation was invited : 25/06/ Name of selected bidder : M/s. Ramky Infrastructure Ltd. 5. Board approval for preferred bidder : 315 th Board Meeting held on 11/10/07 Resolution No Letter of Intent issued : 19/12/2007 (for 200 Ha.land) 7. Notified on : 15/01/2007 C:\Users\hemantsankhe\Desktop\Brief Note SEZ.doc
18 SEZ IN P.P.P. MODE. 6) Yavatmal, Dist- Yavatmal, Sector Specific SEZ for Textile 1. Location : Village- Lohara Taluka & Dist. Yavatmal 2 Area in Hectares : 108 Ha. 3. Bid Evaluation was invited : EoI for co-developer is invited through IL & FS. 4. Name of selected bidder : Yet not decided 5. Board approval for Preferred : --- Bidder 6. Letter of Intent issued : Notified on : 20/08/2007 C:\Users\hemantsankhe\Desktop\Brief Note SEZ.doc
19 SEZ IN P.P.P. MODE. 7) Akola, Dist. Akola, Sector Specific SEZ for Agro processing 1. Location : Village :- 2 Area in Hectares : 100 Ha. 3. Bid Evaluation was invited : - 4. Name of selected bidder : - Yavata, Shivapur Tal. & Dist. Akola 5. Board approval for Preferred : - Bidder 6. Letter of Intent issued : - 7. Notified on : C:\Users\hemantsankhe\Desktop\Brief Note SEZ.doc
20 ANNEXURE- III JOINT VENTURE SEZ S. 1) Khed, Dist- Pune, Multi-Products SEZ. 1. Location : Village :- Nimgaon Ha. Dhavadi Ha. Kanersar Ha. Kendur Ha. Taluka Khed, Dist. Pune 2 Area in Hectares : Proposed Ha. 3. Name of Developer : M/s. Bharat Forge Ltd. Mundhwa, Pune Contonment, Pune Tel.: Fax mail@keipl.in 4. Approvals :- i) In- Principle ii) Formal : : i) No. F2-86/2006EPZ dt For 2000 Ha. ii) No. F2-86/2006EPZ dt for 5000 Ha i) No. F2-86/2006EPZ dt For Ha. ii) No. F2-86/2006EPZ dt for Ha. 5. Date of MoU : 1) With Govt. of Maharashtra on ) With MIDC on C:\Users\hemantsankhe\Desktop\Brief Note SEZ.doc
21 JOINT VENTURE SEZ S. 2) Karla, Dist- Pune Multi Product SEZ. 1. Location : Village :- Takave & Shilatane, Karla & other 9 villages. Taluka Maval, Dist. Pune. 2 Area in Hectares : Approximately 3000 acres 3. Name of Developer : M/s. Mahindra Gesco Developers Ltd. Mahindra Tower, 5 th Floor, Dr. G.M. Bhosale Marg, Worli, Mumbai Tel. 4. Approvals :- i) In- Principle : : i) F2/71/2006EPZ dt for 1000 ha. In- Principle Approval validity extended upto vide letter dt by GOI. 5. Date of MoU : With MIDC on With State Govt C:\Users\hemantsankhe\Desktop\Brief Note SEZ.doc
22 JOINT VENTURE SEZ S. 3) Gandheli, Dist- Aurangabad, Multi Product SEZ. 1. Location : Village :- Gandheli & Others 2 Area in Hectares : 2500 Ha. Taluka & Dist. Aurangabad 3. Name of Developer : M/s. Videocon Realty Infrastructure Ltd. 4. Approvals :- i) In- Principle : i) Dt Extended up to Date of MoU : C:\Users\hemantsankhe\Desktop\Brief Note SEZ.doc
23 JOINT VENTURE SEZ S. 4) Sinnar, Dist- Nashik, Multi Product SEZ. 1. Location : Village :- Musalgaon & Gulwanch Taluka:- Sinnar, Dist. Nashik 2 Area in Hectares : ha. 3. Name of Developer : M/s. Indiabulls Real Estate Ltd. F-60, Malhotra Bldg., 2 nd Floor, Cannaught Place, New Delhi Tel Fax Approvals :- i) In- Principle : i) F2/100/2006-EPZ dt ii) Formal iii) Notification : : i) F2/663/2006-SEZ dt i) dt Date of MoU : C:\Users\hemantsankhe\Desktop\Brief Note SEZ.doc
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