Special Economic Zones Rules, 2006

Chapter 2
Procedure for establishment of Special Economic Zone

6. Letter of  Approval to the Developer.-

¹[(1) The Central Government shall, within a period of thirty days of the communication received by it under clause (a) or clause (b) of Subsection (9) of Section 3 of the Act grant following approvals-

(a) Formal approval in the cases where land is in possession of the developer in Form- B to the person or the State Government concerned or in Form-C, if the approval is for providing infrastructural facilities in the Special Economic Zone, incorporating additional conditions, if any, specified by the Board while approving the proposal;

(b) in-principle approval in other cases in Form-B,1 to the person or the State Government concerned, incorporating additional conditions, if any specified by the Board while approving the proposal.]

^Old[(1) The Central Government shall, within thirty days of the  communication received by it under sub-section (10) of section 3 grant  a  letter  of  approval  in  Form  B  to  the  person  or  the  State  Government concerned or in Form C, if the approval is for providing infrastructural facilities in the Special Economic Zone, incorporating additional conditions, if any,  specified by the Board while approving the proposal.]

¹[(2) (a) The’ letter of approval of a Developer granted under clause (a) of sub-rule (1) shall be valid for a period of three years within which time, effective steps Shall be taken by the Developer to implement the approved proposal:

²[(a) The letter of approval of a Developer granted under clause (a) of subrule (1) shall be valid for a period of three years within which time at least one unit has commenced production and the Special Economic Zone become operational from the date of commencement of such production: 

Provided that the Board may, on an application by the developer or the co-developer, as the case may be, for reasons to be recorded in writing extend the validity period: 

Provided further that the Developer or Co-developer as the case may be, shall submit the application in Form C1 to the concerned Development Commissioner as specified in Annexure III, who, within a period of fifteen days, shall forward it to the Board with his recommendations.]

³[(aa) Where the Special Economic Zone becomes operational, the letter of approval granted under clause (a) shall be valid till the period of validity of notification of such Special Economic Zone;]

^Old[Provided that the Board may, on an application by the developer or co-developer, for reasons to be recorded in writing, extend the validity period for a further period not exceeding two, years.]

(b) The letter of approval of a Developer granted under clause (b) of sub-rule (1) shall be valid for a period of one year within which time, the Developer shall submit suitable proposal for formal approval in Form "A" as prescribed under the 'provisions of rule 3:

²[Provided that the Board may, on an application by the developer, for reasons to be recorded in writing, extend the validity period: 

Provided further that the Developer shall submit the application in Form C2 to the concerned Development Commissioner, as specified in Annexure III, who, within a period of fifteen days, shall forward it to the Board with his recommendations.]

^Old[Provided, that the Board may, on. an application by the developer or co-developer for reasons to be recorded in writing, extend the validity period for a further period, not exceeding two years, upon a request made in writing by the Developer or Co-developer.]

^Old[(2) The letter of approval of a Developer granted under sub-rule (1) shall be valid for a period of three years within which time, effective steps shall be taken by the Developer to implement the approved proposal:

Provided  that  the  Board  may,  if  it  is  satisfied,  extend  the  validity period for a further period not exceeding two years upon a request made in writing by the Developer or Co-developer.]

³[6A. Power of Central Government to review letter of approval. - The Central Government may review the letter of approval granted under subrule (1) of rule 6 on the recommendation of the Board in the following circumstances, namely:-

(i) the Developer submits application in Form C3 for change of the sector to the concerned Development Commissioner, as specified in Annexure III, who, within a period of fifteen days shall forward it to the Board with his recommendations; 

(ii) the Developer submits application in Form C4 for increase in the area to the concerned Development Commissioner, as specified in Annexure III, who, within a period of fifteen days, shall forward it to the Board with his recommendations;

(iii) the Developer submits application in Form C5 for decrease in the area to the concerned Development Commissioner, as specified in Annexure III, who, within a period of fifteen days, shall forward it to the Board with his recommendations.]

1. Substituted vide Notification Dated 16/3/2007

2. Substituted vide Notification Dated 14/06/2010

3. Inserted vide Notification Dated 14/06/2010