RU-20-01-0041-050122/BACKGROUNDER

Special Economic Zones

14 SEZs operational in Uttar Pradesh
(Ministry of Commerce and Industry)

January 05, 2022

Special Economic Zones - An overview:

India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone
(EPZ) model in promoting exports, with Asia's first EPZ being set up in Kandla in 1965.
With a view to overcome the shortcomings experienced on account of the multiplicity of
controls and clearances, absence of world-class infrastructure and to attract larger foreign
investments in India, the Special Economic Zones (SEZs) Policy was announced in April,
2000.1
This policy intends to make SEZs an engine for economic growth supported by quality
infrastructure complemented by an attractive fiscal package, both at the Centre and the State
level, with the minimum possible regulations. SEZs in India functioned from November 01,
2000 to February 09, 2006 under the provisions of the Foreign Trade Policy and fiscal
incentives were made effective through the provisions of relevant statutes.2

To instill confidence in investors and signal the Government's commitment to a stable SEZ
policy regime and with a view to impart stability to the SEZ regime thereby generating
greater economic activity and employment through the establishment of SEZs, a
comprehensive draft SEZ Bill was prepared after extensive discussions with the
stakeholders.3

The Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 which
received Presidential assent on June 23, 2005. The SEZ Rules, came into effect on February
10, 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:4

 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.

1
http://sezindia.nic.in/
2
Ibid
3
ibid
4
ibid
The SEZ Act, 2005 envisages key role for the State Governments in Export Promotion and
creation of related infrastructure. A Single Window SEZ approval mechanism has been
provided through a 19-member inter-ministerial SEZ Board of Approval (BoA). The
applications duly recommended by the respective State Governments/UT Administration are
considered by the BoA periodically. All decisions of the Board of Approval are with
consensus.

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

The SEZ Rules provide for:5

 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 a 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

Salient Feature of SEZ scheme:6

 A designated duty-free enclave to be treated as a territory outside the customs

territory of India for the purpose of authorised operations in the SEZ.
 No licence required for import.
 Manufacturing or service activities allowed.
 The Unit shall achieve Positive Net Foreign Exchange to be calculated cumulatively
for a period of five years from the commencement of production.
 Domestic sales subject to full customs duty and import policy in force.
 SEZ units will have freedom for subcontracting.
 No routine examination by customs authorities of export/import cargo.
 SEZ Developers /Co-Developers and Units enjoy Direct Tax and Indirect Tax benefits
as prescribed in the SEZs Act, 2005.

Facts and Figures:7

 As on November 30, 2021, approvals have been accorded to 425 proposals for setting
up of SEZs in the country.
 So far, 376 SEZs are notified, out of which 268 are operational.
 As on December 08, 2021, eight Special Economic Zones (SEZs) have been approved
for the Agro and Food Processing sector in India. Out of these 8 SEZs, 7 have been
notified and 3 SEZs are operational.
 As on September 30, 2021, total employment generation was about 25.60 lakh
persons and investment of Rs. 6,28,565.89 crore has been made.

5
ibid
6
https://pib.gov.in/PressReleasePage.aspx?PRID=1594927
7
http://sezindia.nic.in/upload/61aa07c253e56New%20FACT%20SHEET%20ON%20SEZs%20as%20on%2030.11.2021.pdf
  In the Financial Year 2021-22 (as on October 31, 2021), exports from SEZs was
5,29,333 crore. There is a growth of 31% over the exports of the corresponding period
of FY 2020-21.

Special Economic Zones in Uttar Pradesh - At a glance

As of September 27, 2021, there are 14 operational SEZs in Uttar Pradesh. Details are
mentioned in the table below:

Source

Noida Special Economic Zone (SEZ):8

Noida Special Economic Zone (NSEZ), the only Central Government SEZ in northern India
was set up in 1985 in Noida Phase-II. Prior to its being an SEZ in 2000, it was one of the
seven Export Processing Zones of the country and was known as the Noida Export
Processing Zone (NEPZ).

The Government of India has so

far invested a sum of Rs.1,114.96
crores on its development. NSEZ
provides excellent infrastructure,
supportive services and sector
specific facilities for the thrust
areas of exports like gem and
jewellery and electronics software.
This is the land locked SEZ, with
the nearest point of exports being
the Integrated Container Depots
(ICDs) like Dadri, Tughlakabad
and Patparganj as well as the
airport in Delhi. Its proximity to
Delhi and availability of skilled
and dedicated manpower makes it
ideal for setting up both
manufacturing and services units.

8
https://www.nsez.gov.in/AboutUs.aspx
NSEZ has 202 developed plots of varying sizes, besides thirteen Standard Design Factory
(SDF) complexes that can accommodate 208 units including one exclusive block for trading
service units. The SDFs are like ready to move in warm shells. Future expansion has been
strategically planned and when implemented fully, the zone would be able to provide 224
SDF units.

NSEZ units have been logging impressive exports during the past many years. Exports from
the zone during 2020-21, even during a tough pandemic period, has been Rs.4,043 crores.
Employment in the zone has gone up from 32,550 in 2009 to 40,061 in 2021. During the
same period, number of operational units in the zone has increased from 245 to 289. On
services side, for all the 34 SEZs under the jurisdiction of NSEZ, the total exports for
software and services are Rs 52,613 crores in 2020-21, with the share of Noida SEZ being Rs
3,009 crores.9

Exports from Export Oriented Units (EOUs) in the jurisdiction of NSEZ have been to the
tune of Rs. 10,006.6 crores during the financial year 2020-21 (as per the figures obtained
from CBIC). NSEZ’s year wise exports are illustrated in the chart below:

Source

Besides, the jurisdiction of Noida Special Economic Zone is spread over State & Private
sector SEZs and EOUs in nine states namely Jammu & Kashmir, Himachal Pradesh, Punjab,
Haryana, Rajasthan, Delhi, Uttar Pradesh, Uttaranchal and Union Territory of Chandigarh.
There are 34 SEZs under the jurisdiction of NSEZ.

9
https://www.nsez.gov.in/AboutUs.aspx
Moradabad Special Economic Zone (SEZ):10

Moradabad SEZ, the only Uttar Pradesh

Government Developed SEZ in the
northern India, was set up in 2003 at
Pakbara – Dingarpur Road in
Moradabad. Government of Uttar
Pradesh through UPSIDC Limited being
developers to this SEZ project has so far
invested a sum of Rs. 1100 million on its
development. Moradabad SEZ provides
excellent infrastructure, supportive
services and sector specific facilities for
the Handicraft Trade. Proximity to
Delhi/ NCR and availability of skilled
and dedicated manpower makes it ideal
for setting up various industries in
Handicrafts & its allied field.

This is a sector Special Economic Zone

for handicraft products. Provision for infrastructure facilities such as: – greenbelt,
boundary wall, internal development, security system, power substation, CETP, inland
container depot, design and training center, helipad, school, canteen has been made.

Moradabad SEZ was operationalized since April, 2007 when it started with only one
unit, however till today in spite of global slowdown in the handicraft trade for past
four years; this zone has now 58 operational Units as on 30.06.2021.

Source

Infrastructure, supportive services and trade related facilities have been substantially
upgraded during the last few years. Moradabad SEZ offers access to global
telecommunication network, uninterrupted power supply and efficient local transport
system. Supportive infrastructure and easy availability of manpower make Moradabad
SEZ an ideal location for setting up handicraft unit.

10
http://moradabadsez.gov.in/about.html
Facility of Inland Container Depot (ICD) is available inside the zone which is
operated by the Container Corporation of India Limited (CONCOR), Moradabad and
which is linked to the rail-head available at Moradabad Inland Container Depot (ICD)
in city. 11

Source

Other operational Special Economic Zones in Uttar Pradesh:

S.No. Name of the SEZ Address Type of SEZ Status

1. Moser Bear India Ltd. Greater Noida, Uttar Non- Operational
Pradesh conventional
Energy
including solar
energy
equipments /
cell
2. Ansal IT City and Parks Techzone, Greater IT/ITES Operational
Limited Noida, Uttar Pradesh
3. HCL Technologies Ltd Sector 126, Noida, IT/ITES Operational
Uttar Pradesh
4. NIIT Technologies Plot No.TZ-02, IT/ITES Operational
Limited SEZ Sector-Tech Zone,
ITES Park, Greater
Noida, UP
5. WIPRO Limited Gautam Budh Nagar, IT/ITES Operational
Greater Noida, Uttar
Pradesh
6. Seaview Developers Plot No. 20&21, IT Operational
Limited Sector-135, Noida,
Uttar Pradesh
7. Oxygen Business Parks Plot No. 7, Sector- IT/ITES Operational
Pvt. Ltd. [Formerly 144, Noida, Uttar
Aachvis Softech Private Pradesh
Limited (Formerly Falcon
Commercial Developers
Limited)]
11
http://moradabadsez.gov.in/about.html
 8. Arshiya Northern FTWZ Ibrahimpur, Junaidpur Multi Sector Operational
Limited Urf Maujpur, District SEZ (including
Bulandshahar, Uttar FTWZ)
Pradesh
9. Artha Infratech Private Sector Techzone-IV, IT/ITES Operational
Limited Greater Noida, District
Gautam Budh Nagar,
Uttar Pradesh
10. HCL IT City Lucknow Village Kanjehara & IT/ITES Operational
Private Limited Mastemau, Chack
Gajaria Farms,
Sultanpur Road,
Lucknow, Uttar
Pradesh
11. Golden Tower Infratech Plot No. 8, Sector-144, IT/ITES Operational
Pvt. Ltd. Noida, Uttar Pradesh
12. TATA Consultancy Plot No: 01, Sector- IT/ITES Operational
Services Limited 157, Noida, Uttar
Pradesh
Source

References:
1. PIB Press Release Independence Day- August 15, 2020 Dated August 15, 2020.
2. PIB Press Release Development of SEZ Dated December 4, 2019
3. PIB Press Release Special Economic Zones in the Country Dated March 20, 2020.
4. PIB Press Release 378 SEZs are presently notified, out of which 265 are operational Dated March 10, 2021.
5. PIB Press Release Special Economic Zones touch new heights Dated July 23, 2021.
6. PIB Press Release Functioning SEZs Dated August 6, 2014.
7. PIB Press Release Cabinet approves the SEZs (Amendment) Bill, 2019 Dated June 12, 2019
8. PIB Press Release India shines in Ease of Doing Business Rankings Dated December 11, 2018.
9. PIB Press Release Special Economic Zones Dated December 8, 2021.
10. http://moradabadsez.gov.in/about.html
11. https://www.nsez.gov.in/AboutUs.aspx
12. http://sezindia.nic.in/cms/operational-sezs-in-india.php
13. http://sezindia.nic.in/

Further Reading:
1. https://www.jstor.org/stable/40277713
2. https://books.google.co.in/books?hl=en&lr=&id=afUtk2KTun0C&oi=fnd&pg=PR1&dq=special+economic
+zones+in+india&ots=Fib4oCieQm&sig=SpUQlCGwqr-
v91fstHqcfe4JXnQ&redir_esc=y#v=onepage&q=special%20economic%20zones%20in%20india&f=false
3. https://www.jnu.ac.in/sites/default/files/u63/08-Labour%20Economic(Jaivir%20Singh).pdf

AG/HP/SA/JA