Instruction No. 121

K-43022/194/2025-SEZ
Government of India
Ministry of Commerce & Industry
Department of Commerce
SEZ Division

Vanijya Bhawan, New Delhi
Dated the 17 October, 2025

To

The Zonal Development Commissioner
All Zonal Special Economic Zones.

Subject: Conversion of demarcated Non-Processing Built up area (NPA) into Processing Built Up Area (PA)-reg.

Ma'am/Sir,

I am directed to refer to the subject mentioned above regarding granting approval with respect to proposals for conversion of demarcated Non-Processing Built up Area (NPA) into Processing Built Up Area (PA) and to say that the developers in IT/ITES SEZs which had earlier got a portion of built-up area demarcated into NPA u/R 11B of the SEZ Rules, 2006 have now applied to the Development Commissioner for reverse demarcation (NPA to PA).

2. In this regard, it is informed that Rule 11B contains the provisions for demarcation of a portion of built-up area as NPA from PA for IT/ITES SEZs. So far as demarcation from NPA to PA is concerned, the same is governed by Rule 11 wherein under sub-Rule (1) and (2) of Rule 11, the Development Commissioner has been given the authority to issue demarcation order under the provisions of Section 6 of the SEZ Act and take appropriate measures to secure entry and exit from/to demarcated areas, However, all such cases may be decided only if there is no claim of any duty refund by the applicant Developer.

3, This issues with the approval of Competent Authority.

Yours faithfully,

(Prateek Bajpai)
Under Secretary to the Govt. of India
Tel. 011-23039829
Email : prateekbajpai, moca@nic.in