Government Eases Certain SEZ Rules For Semiconductors, Electronic Components Manufacturing

The government has eased contiguous land area norms for special economic zones which want to engage exclusively in the manufacturing of semiconductors or electronic components, according to a notification.

"Where a Special Economic Zone is exclusively set up for the manufacturing of semiconductors or electronic components, the contiguous land area shall be ten hectares or more," the commerce ministry's notification has said. Earlier, this was 50 hectares.

It added that for the purposes of this provision, the electronic components would include display module sub-assembly, camera module sub-assembly, battery sub-assembly, various types of other module sub-assemblies, printed circuit board, Li-ion cells for batteries, mobile and information technology hardware components, hearables and wearables.

The notification also said that the Board of Approval (highest decision-making body for SEZs) can relax the condition of encumbrance-free area, in cases where the area is mortgaged or leased to the central or state government, or their authorised agency.