New Delhi, Aug 13 (KNN)  With a view to making special economic zone (SEZ) appealing to investors, the government has relaxed minimum area requirements and eased the exit clause for developers.

Minimum land requirement as per the new SEZ rules has been brought down from 1,000 hectares to 500 hectares for multi-product SEZ. On the other hand, for sector- specific SEZs, it has been brought down to 50 hectares, according to the Department for Industrial Policy and Promotion.  
 
In addition, the SEZ norms for setting up of zones in north eastern states, hilly regions, Goa and Union Territories have also been relaxed. While there will be no minimum area required for IT SEZs, there will be a minimum built up area criteria for developers of 1 lakh square metres for the top-7 cities, 50,000 square metres for the next 15 cities and 25,000 square metres for the rest of the cities.
 
As far as SEZs to be set up exclusively for electronics hardware, agro-based food processing, biotechnology and handicrafts are concerned, the minimum area required will be 10 hectares.
 
The amended SEZs rules have also eased the exit clause for developers and now an SEZ unit may opt out of the zone by transferring its assets and liabilities to another entity by way of transfer of ownership including sale of SEZ units subjected to conditions like prior clearance from the approval committee.
 
However, the unit will be transferred to the buyer if it is operational for a minimum period of 2 years after the commencement of production.
 
Exports from SEZs have been consistently rising, having grown by about 31 per cent year on year to Rs 4.76 lakh crore.  Hence the government wants to increase investment in these zones by amending norms.  (KNN/ES)