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Report - SEZs Haryana
Report - SEZs Haryana
Report - SEZs Haryana
In Partial Fulfillment of Master of Business Administration
(Entrepreneurship & Leadership)
By:
Mayank Singh
AMITY UNIVERSITY
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐UTTAR PRADESH‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
AMITY BUSINESS SCHOOL – AU
Sector‐44, Noida, UP
1
Contents
¾ Executive Summary 5
¾ Introduction 6
9 What is SEZ? 7
9 World’s first SEZ 8
9 SEZ in India 11
o Approval mechanism and Administrative set up of SEZs 13
o Incentives and Benefits 14
o SEZ policy is special in many ways 15
o SEZ Approval Status 16
o Land requirements for approved SEZs 16
o Benefits derived from SEZs 17
9 Special Economic Zone of China 18
¾ Objective and Rationale of project 19
¾ Research Methodology 20
9 Hypothesis 20
9 Sample Size 20
9 Questionnaire 20
9 Action plan for data collection 20
9 Data analysis 21
o SEZs in Haryana 25
o Single Vs Multi Product 25
2
o Distribution of Products 26
o Major Competitors 26
o Company with maximum are to set up SEZ 27
o Maximum No. of SEZ under one company 28
o Percentage of land acquired by the companies 29
¾ Research Findings 30
9 Ansal IT City and Parks Ltd. 31
9 Assotech Realty Pvt. Ltd. 33
9 DLF Limited 35
9 D. S. Constructions Ltd. 39
9 Emaar MGF Land Pvt. Ltd. 41
9 Luxor Cyber City Pvt. Ltd. 45
9 Orient Craft Infrastructures Ltd. 46
9 Parsvnath Developers Limited 47
9 Raheja Haryana SEZ Developers Pvt. Ltd. 52
9 Reliance Haryana SEZ Pvt. Ltd. 54
9 Rockman Projects Ltd. 60
9 Shreeaumji Developers Pvt. Ltd. 61
9 Suncity Haryana SEZ Developers Pvt. Ltd. 63
9 Unitech Haryana SEZ Ltd. 65
9 Uppal Developers Pvt. Ltd. 66
9 Vipul Ltd. 68
¾ Conclusion 70
3
¾ Bibliography 71
¾ Annexure‐I 72
¾ Annexure‐II 75
¾ Annexure‐III 78
¾ Annexure‐IV 86
4
Executive Summary
To provide a stable economic environment for the promotion of Export‐import of goods in a quick,
efficient and hassle‐free manner, Government of India enacted the SEZ Act, which received the assent of
the President of India on June 23, 2005. The SEZ Act and the SEZ Rules, 2006 (“SEZ Rules”) were notified
on February 10, 2006. The SEZ Act is expected to give a big thrust to exports and consequently to the
foreign direct investment (“FDI”) inflows into India, and is considered to be one of the finest pieces of
legislation that may well represent the future of the industrial development strategy in India. The new
law is aimed at encouraging public‐private partnership to develop world‐class infrastructure and attract
private investment (domestic and foreign), boosting economic growth, exports and employment.
The SEZ Act has encouraged many companies to undertake setting up of various SEZs all over India. The
incentives and benefits provided to SEZs have attracted even those companies which are not into
developing field. Being new to real estates, they have come up with their SEZs in Joint Venture with well
established companies that have experience in the field. For example, Luxor is coming up with its SEZ in
Joint Venture with Uppal Developers Pvt. Ltd.; Shreeaumji Developers Pvt. Ltd. is in Joint Venture with
Unitech Group, Jai Bharat Maruti and Minda Industries, Reliance Industries Ltd. with Reliance Haryana
SEZ Pvt. Ltd. as its Special Purpose Vehicle.
The study consisted of primary and secondary data. At first, secondary data was taken from internet like
the list of companies, the size and location of SEZs, contact details etc. Then a survey of the companies
was undertaken wherein primary information of the companies was extracted after visiting the
companies and personally interviewing the executives. Once the data was collected, then the analysis
was done.
The result found was that DLF, Emaar MGF, Reliance are the major competitors, as Reliance coming up
with largest SEZ, DLF is coming up with the second Largest SEZ and Emaar with 3 Multi‐Product SEZ in
Gurgaon. Also, those many company’s SEZs are touching KMP highway for connectivity, starting from
Kundli with Unitech’s SEZ and ending at Palwal with D.S. Construction’s SEZ.
5
Introduction
6
What is SEZ (Special Economic Zone)?
A Special Economic Zone (SEZ) is a region that has economic laws that are more liberal than a country's
typical economic laws. Usually the goal is an increase in foreign investment.
Special economic zone is a particular area inside a state which acts as foreign territory for tariff and
trade operations. Govt. provides tax exemption (IT, Excise, customs, sales etc.), subsidized water and
electricity etc.
Special Economic Zones have been established in several countries, including India, Iran, Jordan, Poland,
Kazakhstan, Philippines, Russia, and Ukraine. North Korea has also attempted this to a degree, but
failed. Puno, Peru has been slated to become a "Zona Ecomomica". In the United States, SEZ are
referred to as "Urban Enterprise Zones".
SEZ can be sector specific or multi product SEZ. It helps in the development of infrastructure of the area
around the SEZ, provides employment to people, and makes the exports more viable. All this will help
the country's products to become more competitive visa‐a‐versa providing all round development of
region.
It should be noted that if 100 acres are allotted for SEZ, then only 50% of area is used for setting up
plants rest of the area is used to provide housing facilities, malls, multiplexes etc. also known as non‐
processing Zone. Also Tax exemption is for specific period say for 10 yrs or so.
7
World’s first SEZ
The Shannon Concept
Innovative Developments at Shannon that contributed to national development include:
Promotion of FDI: Shannon was the first gateway for the entry of export based foreign direct
investment into Ireland. The positive experience of investors at Shannon led to additional FDI
throughout the national economy. Today Shannon is still the largest single site concentration of foreign
investment in Ireland.
Promotion of International Financial/ IT Services: Shannon Development led the way in the 1960’s in
promoting international financial and IT services. The success of these activities at Shannon was
observed by others in Ireland and overseas. The Dublin International Financial Services Centre, a kind of
financial services free zone was established in 1987. It has been judged an outstanding success. IDA
assisted international IT and financial services projects now employ upwards of 30,000 people.
Training Needs and Facilities: There was close co‐operation from the outset between Shannon
Development and the new investors. Needs included an industrial training centre to train workers in
semi skilled tasks and develop supervisory skills. A new training centre was established within the Free
Zone. Later this led to the establishment of a national industrial training authority with Shannon
Development’s chief executive as its first chairman.
Industrial Parks: The Shannon free zone was Ireland’s first industrial park and the experience was later
applied in other population centers throughout the country.
Technology Development: To attract high quality investment the need for a strong technologically
oriented university, was recognized. The University Of Limerick, Ireland’s first technological university,
was established in 1973. Shannon’s chief executive became its first chairman and to forge closer links
between the RDA and the university, the university president was appointed to the board of Shannon
Development. In 1980 one of the first Innovation Centers in Europe was developed adjacent to the
university campus.
National Technology Park and the Regional Knowledge Network: In 1984 Shannon Development in
partnership with the university established the country’s first technology park on a 120ha site adjoining
the campus. This Concept has now been extended to create a knowledge network of five smaller
technology parks and centers in peripheral locations throughout the region.
8
Other Business Infrastructure: Over the years Shannon Development led the way in Ireland in
developing other forms of business infrastructure to cater for the diverse needs of a growing number of
Irish entrepreneurs. Initiatives included small industry estates; an enterprise centre network; innovation
centers; business incubator units and a specialized food industry centre.
Tourism: Shannon Development led the way in the 1960s in developing and marketing heritage based
tourism attractions such as medieval castle banquets and folk parks. In order to promote economic
activity and spread the benefits of tourism to isolated rural areas, it developed the rent an Irish cottage
scheme. Shannon Development continues to develop innovative tourist attractions in areas of the
Shannon Region outside the influence of the major industrial centres. In recent years EU structural funds
have been used creatively to develop new tourist products such as Kilrush Creek Marina, the Tralee
Tourism cluster, Doonbeg Link’s golf course, Limerick Heritage precinct and others.
Regional Planning and Development: The airport, free zone, and various tourism initiatives had a major
impact on the surrounding Shannon Region. The Irish government in 1968 took the logical step of
extending Shannon Development’s mandate to include the wider Shannon Region. Thus Shannon
Development became Ireland’s first regional development agency. It produced the country’s first
regional industrial development plan in 1969. This acted as a model for similar plans in other Regions.
Rural Development: Shannon Development’s regional responsibility led naturally to an interest in the
development of rural areas. It used, and continues to use today, its tourism development and marketing
expertise to promote rural development.
Shannon Impact in other parts of the Globe
From the mid 1960’s onwards developments at Shannon attracted the interest of the wider world.
Duty Free Shops: The Shannon duty free shop concept has been replicated many times throughout the
world. Most of the highly successful Middle East shop and those in Russia and the former Soviet Union
benefited from Shannon consultancy advice and management expertise.
Free Zones: The Shannon free zone model has been used in many parts of the world. Taiwan (1965),
Malaysia (1971), Egypt (1976), Mauritius (1978), and Sri Lanka (1978) were among the first group of
successful zones to benefit from Shannon advice and consultancy inputs. In the last 25 years upwards of
50 countries world‐wide have been assisted.
9
Special Economic Zones: The Chinese SEZ is the corner stone of the Chinese economic miracle for the
last 25 years. The Chinese SEZ concept was developed following a visit to Shannon by a group of Chinese
officials in 1976. When they returned to China they related their Shannon experience to Deng Xiao Ping.
The discussion that followed led to the establishment of the first Chinese SEZ in 1978.
10
SEZ in India
Considering the need to enhance foreign investment and promote exports from the country and
realizing the need for a platform must be made available to the domestic enterprises and manufacturers
to be competitive globally. The Government of India in April 2000 announced the introduction of Special
Economic Zones policy in the country, deemed to be foreign territory for the purposes of trade
operations, duties and tariffs. As of 2007, more than 500 SEZs have been proposed.
Gujarat coast is Kandla, where the first SEZ in India was set up in 1965 called an export processing zone,
or EPZ. Coming seven years after the world's first SEZ at Shannon in Ireland, it was the first of its kind in
Asia. But 40 years on, Kandla and the seven other state‐run EPZs‐turned‐SEZs in India have failed to live
up to their promise. Experts say the principal reason for this sorry state of affairs is inadequate
infrastructure.
With a view to overcome the shortcomings experienced on account of the multiplicity of controls and
clearances, absence of world‐class infrastructure, and an unstable fiscal regime and with a view to
attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in
April 2000. SEZs in India functioned from 1.11.2000 to 09.02.2006 under the provisions of the Foreign
Trade Policy and fiscal incentives were made effective through the provisions of relevant statutes. 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 prepared after extensive
discussions with the stakeholders. A number of meetings were held in various parts of the country both
by the Minister for Commerce and Industry as well as senior officials for this purpose. The Special
Economic Zones Act, 2005, was passed by Parliament in May, 2005 which received Presidential assent
on the 23rd of June, 2005. The draft SEZ Rules were widely discussed and put on the website of the
Department of Commerce offering suggestions/comments. Around 800 suggestions were received on
the draft rules. After extensive consultations, the SEZ Act, 2005, supported by SEZ Rules, came into
effect on 10th February, 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:
(a) Generation of additional economic activity
(b) Promotion of exports of goods and services;
(c) Promotion of investment from domestic and foreign sources;
(d) Creation of employment opportunities;
(e) Development of infrastructure facilities;
11
The SEZ Rules provide for different minimum land requirement for different class of SEZs. Every SEZ is
divided into a processing area where alone the SEZ units would come up and the non‐processing area
where the supporting infrastructure is to be created.
The SEZ Rules provide for:
a) Simplified procedures for development, operation, and maintenance of the Special Economic
Zones and for setting up units and conducting business in SEZs;
b) Single window clearance for setting up of an SEZ;
c) Single window clearance for setting up a unit in a Special Economic Zone;
d) Single Window clearance on matters relating to Central as well as State Governments;
e) Simplified compliance procedures and documentation with an emphasis on self certification
Note: FAQs SEZ see the appendix below
Many people in India think that setting up many Special Economic Zones (SEZs) is the best solution for
India for attracting foreign investment. India is trying desperately to attract foreign investment so it can
create thousands of new jobs. For doing so, India needs to develop infrastructure and SEZ seems to be
the best answer in this regard. The supporters of the concept of SEZ argue that since India cannot afford
to invest a huge amount of money to develop the infrastructure of the whole India, SEZ is the only viable
option. They also argue that SEZs are free of the negative aspects of Indian bureaucracy. They feel that if
India wants to match Chinese economic development then there is no alternative to setting up SEZs and
attract local and foreign investment.
Not everyone is happy with these arguments. Those who are against it argue that giving tax breaks to
SEZs is not a good idea. They are also against acquisition of fertile agricultural land as it will make many
farmers landless.
It’s clear that government lacks in long term funds which could be better used for infrastructure
development of the country, so instead of being a silent spectator, it’s better to encouraging private
investment, which is the novel way to utilize the resources of the country. Tax incentives are the most
ulcerative way to attract the private players. Proper policy towards SEZ's with due care being taken for
poor farmers will definitely help India to achieve its economic goal.
The following are the disadvantages of an SEZ:
1. If built on agricultural land the farmers will loose their livelihood as they are not skilled laborers
it would to tough to relocate them to other jobs.
2. Since the companies that operate under SEZ enjoy a lot of tax holidays it would create a burden
on the finance ministry as tax collected would be less.
12
3. It could create socio‐economic disparities as the SEZ would accommodate the high and mighty
the poor people will be pushed towards poverty and unemployment.
Approval mechanism and Administrative set up of SEZs
(a) Approval mechanism:
The developer submits a proposal for establishment of SEZ to the concerned State Government. The
State Government has to forward the proposal with its recommendation within 45 days from the date of
receipt of such proposal to the Board of Approval. The applicant also has the option to submit the
proposal directly to the Board of Approval.
The Board of Approval has been constituted by the Central Government in exercise of the powers
conferred under the SEZ Act. All the decisions are taken in the Board of Approval by consensus. The
Board of Approval has 19 Members. Its constitution is as follows:
(b) Administrative set up:
The functioning of the SEZs is governed by a three tier administrative set up. The Board of Approval is
the apex body and is headed by the Secretary, Department of Commerce. The Approval Committee at
the Zone level deals with approval of units in the SEZs and other related issues. Each Zone is headed by a
Development Commissioner, who is ex‐officio chairperson of the Approval Committee.
Once an SEZ has been approved by the Board of Approval and Central Government has notified the area
of the SEZ, units are allowed to be set up in the SEZ. All the proposals for setting up of units in the SEZ
are approved at the Zone level by the Approval Committee consisting of Development Commissioner,
Customs Authorities and representatives of State Government. All post approval clearances including
grant of importer‐exporter code number, change in the name of the company or implementing agency;
broad banding diversification, etc. are given at the Zone level by the Development Commissioner. The
performance of the SEZ units is periodically monitored by the Approval Committee and units are liable
for penal action under the provision of Foreign Trade (Development and Regulation) Act, in case of
violation of the conditions of the approval.
13
Incentives and Benefits
Besides providing state‐of‐the‐art infrastructure and access to a large well‐trained and skilled work
force, the SEZ policy also provides enterprises and developers with a favorable and attractive framework
of incentives:
• 100% income tax exemption for a block of five years and an additional 50% tax exemption for
two years thereafter
• 100% FDI in the manufacturing sector permitted through automatic route, barring a few
sectors.
• External commercial borrowings by SEZ units up to US$500 million in a year without any
maturity restrictions through recognized banking channels.
• Facility to retain 100% foreign exchange receipts in Exchange Earners’ Foreign Currency
Account.
• 100% FDI permitted to SEZ franchisee in providing basic telephone services in SEZs.
• No cap on foreign investment for small scale sector reserved items.
• Exemption from industrial licensing requirements for items reserved for the SSI sector.
• No import license requirements
• Exemption from customs duties on import of capital goods, raw materials, consumables,
spares etc
• Exemption from Central Excise duties on procurement of capital goods, raw materials,
consumable spares etc., from the domestic market.
• No routine examinations by Customs for export and import cargo.
• Facility to realize and repatriate export proceeds within 12 months.
• Profits allowed to be repatriated without any dividend‐balancing requirement.
• Job work on behalf of domestic exporters for direct export allowed.
14
• Subcontracting both domestic and international is permitted; this facility is available to
jewellery units as well.
• Exemption from Central Sales Tax and Service Tax
• Facilities to set up off‐shore banking units in SEZs.
Incentives to Developers
• Exemption from duties on import /procurement of goods for the development, operation and
maintenance of SEZ.
• Income tax exemption for a block of 10 years in 15 years.
• Exemption from Service Tax
• FDI to develop townships within SEZs with residential, educational, health care and
recreational facilities permitted on a case‐to‐case basis.
The SEZ policy is special in many ways:
• The range of permissible economic activities is vast since it covers trading, reconditioning,
labeling/ repacking, etc.
• Under the Union Government’s policy, businesses will operate under a high quality policy and
business friendly regulatory environment free from hassles.
• The SEZ will provide high quality, world‐class infrastructure designed to render costs of
production, delivery, logistics and transactions competitive on a global basis.
• The size of the SEZ would be large enough to attract private participation in building
infrastructure.
• While the SEZ will be insulated from the domestic tariff area in so far as negative influences are
concerned, SEZ units will nonetheless get the much sought after access to domestic markets.
SEZ provides for unrestricted access to domestic markets (with payment of relevant duties on
imports and outputs).
• Units in the SEZ will get 100% tax break/ holiday for first five years and 50% thereafter for the
next five years and also for a further period of five years. 100% foreign ownership is
automatically cleared in the manufacturing sector.
• ‘Export‐ oriented’ economic activities only are permitted (NFE over a five year must be positive)
15
• While development of the SEZ scheme is under the Union Government, States have a key role
in organizing the administration of the SEZs. Further, it is envisaged that the private sector
could play an important role in building and managing the SEZ facilities.
Although the Special economic Zones offer a plethora of benefits in terms of the tax exemptions and
export promotion incentives, there are other requirements that are important.
SEZs need to be treated as complete Islands of self containing world class infrastructure that is fully
connected to the rest of the world and provides for all the infrastructural requirements as is provided in
any First World Country. And these factors need to be an inherent part of the infrastructure of the SEZ.
Leaving this to be a provided by either the State or the Central Government would put the clog in the
wheel of the development of a State of the Art Facility.
SEZ Approval Status
Consequent upon the SEZ Rules coming into effect w.e.f. 10th February, 2006, nine meetings of the
Board of Approvals have since been held. In recent months, the SEZ rush had dried up with only around
25 applications having being received since April 6. While government has granted final approvals to 339
proposals, other 120‐odd zones have received first‐stage clearance, where land needs to be acquired,
and leaving only around 40 proposals pending. There is another set of 225 applications which are
expected to be rejected since the state government has not supported the proposals. 126 SEZs have
been notified till date.
Land requirements for approved SEZs
The total land requirement for the (approx) 300 formal approvals granted till date is (approx) 40000
hectares out of which about 60 approvals are for State Industrial Development Corporations/State
Government Ventures which account for over 17800 hectares. In these cases, the land already available
with the State Governments or SIDCs or with private companies has been utilized for setting up SEZ. The
land for the 63 notified SEZs where operations have since commenced involved is 8051.56 hectares only.
Out of the total land area of 2973190 sq km in India, total agricultural land is 1534166 sq km (51.6%). It
is interesting to note that out of this total land area, the land in possession of the 63 SEZs notified
16
amounts to approximately 67 sq km only. The approximately 300 formal approvals will also cover only
around 450 sq km.
Benefits derived from SEZs
Benefits derived from SEZs are evident from the investment, employment, exports and infrastructural
developments additionally generated. Investment of the order of Rs.100, 000 crores including FDI of US
$ 5 ‐ 6 billion is expected by the end of December 2007. 500,000 direct jobs are expected to be created
by December 2007. The benefits derived from multiplier effect of the investments and additional
economic activity in the SEZs and the employment generated thus will far outweigh the tax exemptions
and the losses on account of land acquisition. Stability in fiscal concession is absolutely essential to
ensure credibility of Government intensions.
(a) Exports from the functioning SEZs during the last three years are as under:
Projected exports from all SEZs (82) for 2007‐08: Rs. 67300 crores
(b) At present,
1016 units are in operation in the SEZs, providing direct employment to over 1.79 lakh persons; about
40% of whom are women. Private investment by entrepreneurs in the SEZs established prior to the SEZ
Act is of the order of over Rs. 4400 crores. In the 63 notified SEZs which have come up after 10th
February 06, investment of Rs. 13,435 crores has already been made in less than one year. These SEZs
have so far provided direct employment to 18,457 persons.
17
Special Economic Zones of China
The word "special" mainly means special economic systems and policies. In the China, the central
government gives SEZs special policies and flexible measures, allowing SEZs to utilize a special economic
management system.
1. Special tax incentives
2. Greater independence on international trade activities.
3. Economic characteristics are represented as "4 principles":
1. Construction primarily relies on attracting and utilising foreign capital
2. Primary economic firms are sino‐foreign joint ventures and partnerships as well as
wholly foreign‐owned enterprises
3. Products are primarily export‐oriented
4. Economic activities are primarily driven by market
SEZ are listed separately in the national planning (including financial planning) and have province‐level
authority on economic administration. SEZs local congress and government have legislation authority.
18
Objectives and rationale of the
Project
Analyzing the Scenario of SEZs in Haryana:
There is a very big market of SEZ is emerging. Many
companies are coming up with their SEZs in Haryana.
Thus, the project aims at analyzing the scenario of SEZs
coming up in Haryana.
19
Research Methodology
Hypothesis:
H0: There is no difference among existing SEZs in Haryana.
H1: There is difference among existing SEZs in Haryana.
Sample Size: 35
Questionnaire: See Annexure‐1 for Questionnaire.
Action Plan for data Collection:
Primary and Secondary data
Primary data: This was conducted through a survey of all the
companies coming up with their SEZs by taking personal
interview of their executives.
20
Data analysis:
21
Gurgaon, IT/ITES 120
8. Machigarh, Gems & 40
Bhupani, Distt Jewellery
9. Faridabad
10. Banskusla, Gurgaon
11. Bans Hariya,
Gurgaon
12. Naweda Fatehpur,
Gurgaon
5 M/s. Unitech Sonepat‐Kundli, Haryana Multi‐product 4000 Mr. V. K. Chaddha
Haryana SEZ
Ltd.
6 Suncity 1. Jhund Sarai, IT 41.278 Mr. K. N. Gupta
Haryana SEZ Gurgaon
Developer Pvt. Multi Product 3237.48
Ltd 2. Ambala, Haryana
7 Raheja 1. Dharuhera‐Rewari Multi‐product 2000
Haryana Belt
SEZ Electronic 132
Developers 2. Ghatta, Gurgaon Hardware &
Pvt. Ltd Software
including
ITES
8 Natasha Panipat, Haryana Multi Product 1000
Housing &
Urban
Development
Ltd.
22
11 M/s. Orion Bandhwari, Gurgaon, IT/ITES 130
Infrastructure Haryana
Pvt. Ltd.
23
20 Pioneer Urban Village Ghata, IT/ITES 40.48 Mr. Jaju
Land Gurgaon, Haryana,
and very close to NH‐8
Infrastructure
Limited
21 Ireo 31, Ghata, Behrampur Electronic 40 Mr. Lalit Goel
Investment and Balola in District Hardware,
Holding Gurgaon, Haryana IT/ITES
III Ltd.
22 Dr. Fresh Gurgaon IT/ITES 30.35
Healthcare
Pvt. Ltd.
23 Luxor Cyber Village Sikohpur, IT/ITES 28 Mr. Gyan Bansal
City Pvt. District Gurgaon
Ltd.
24 Global Health MediCity, Sector 38, Biotechnology 17.41 Mr. Naresh
Private Gurgaon, Haryana Trehan
Limited
25 Ascendant Gurgaon, Haryana IT/ITES 15.2
Estates
Private
Limited
26 Assotech Gurgaon, Haryana IT/ITES 10.62 Mr. Indrapreet
Realty Pvt. Ltd
28 M/s. Sunwise Gurgaon IT/ITES 10.12
Properties
Pvt. Ltd
29 Metro Valley 5th Mile stone, on IT 10
Business Gurgaon ‐ Faridabad
Park Private Road, Opp. Ansals
Limited Valley View
Apartments, Gurgaon,
Haryana
30 Selecto Main Mathura Road IT / ITES 3.34
systems Faridabad Haryana
Pvt. Ltd
24
SEZs in Haryana
Single Vs Multi Product
25
Distribution of products
Major Competitor
26
Company with Maximum area to set up SEZs
27
Maximum no. of SEZ’s under one company
28
Percentage of land acquiered by the Companies
29
Research Findings
30
Ansal IT City and Parks Ltd
Ansal’s is renowned globally for offering a perfect blend of luxury and comfort. An ISO 9001:2000
company, it has gained recognition as a premier organization in the field of housing, institutional,
commercial and industrial construction. It has pioneered many consumer‐friendly innovations too.
Village Badshahpur, Sohna Road, Gurgaon
This project has been planned over 27 acres of land with a built‐up area of approx. 2mn Sq. ft. Govt. of
India has granted Formal Approval to this project. The land has been fully acquired. This shall be
designed to cater the end requirements of IT/ ITES sector with robust infrastructure and specifications.
Ansals does not consider any company as its competitor as according to them demand will be more than
supply. It considers that its credibility. Established brand image, 40 years of experience, and its
segregation of teams for IT, Retail, Residential etc are its strength that keeps its ahead of other players
in the market.
The company plans to provide a medi‐centre, offices, shops and housing facilities in its non‐processing
sector. It has tie up with D R, a Dubai Company for foreign investment.
The construction work has started and tower work is in progress. It will take around3‐5 years to
complete the construction.
Murthal, Sonepat, Haryana
Granted formal approval from Government of India to develop as Engineering Goods sector SEZ.
Strategically located on NH‐1 (village Bhigan & Kurad brahimpur), it will cover an area of approx.250
acres.
Besides the dedicated manufacturing zone, it will also consist of residential options, commercial options,
amenities, facilities and other supporting social infrastructure. It shall provide an excellent
manufacturing option for setting up of exporting units involved in hand tools, auto components, heavy
and light machinery, utensils and other such engineering goods.
31
The land has got in‐principal approval and 100% acquisition of land has been done. It considers that its
credibility. Established brand image, 40 years of experience, and its segregation of teams for IT, Retail,
Residential etc are its strength that keeps its ahead of other players in the market.
According to Ansals, the demand for export of engineering goods is more in this belt therefore apart
from above mentioned strengths; this also proves to be beneficial for the company.
Currently they do not have any specific plans for next year but they will be going for notification for this
SEZ. The Engineering Goods SEZ is different from IT SEZ in business model.
32
Assotech Realty Pvt. Ltd.
Assotech, a frontrunner in the real estate fraternity, now presents India's most impressive business hub
for tomorrow. Assotech IT SEZ will be one of the largest and finest IT destinations in the country.
Distinctly contemporary in style, all the buildings will have a judicious combination of attractive glass
façade, stones and metal panels. Assotech IT SEZ will be an integrated, environment‐friendly and
energy‐efficient business space that uses both passive and active intelligence to maximize benefits for
its occupants.
This massive business hub is planned over an area of 40 acres with approx. 2.7 million sq. ft. of area
comprising of IT workspace and 1 million sq. ft. of area of retail, residential and recreational space.
Key Features
• Ultra‐chic facade for each building.
• 100% power back up for entire electric supply.
• Centrally air‐conditioned ‐ AHUs located on each floor.
• Modern fire detection and suppression system with sprinklers, fire and smoke detectors.
• Intelligent vehicle parking.
• Foolproof security systems
• Last mile telecom and fiber optic connectivity through various service providers.
• Autonomous power support from own grid
Value Adds
• Green and intelligent buildings.
• A helipad within the complex.
• A state‐of‐the‐art convention center.
• Energy‐efficient and environment‐friendly planning.
• Professional property management by one of the top international property management firms.
• Low operating cost through economies of scale.
• Water conservation, re‐processing and rainwater harvesting facility.
• Data Vault (Face/Retinal Scan).
• Green building materials, composites and consumables.
• Passive intelligence to maximize natural light.
• Over 100,000 sq. ft. of a one‐of‐its‐kind recreational zone with a huge sports club.
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Assotech IT SEZ is nestled in the heart of the futuristic city of Gurgaon. Located on the Sohna Road, it's
just a 30‐minute drive from the International Airport and 10 minutes away from the NH 8. Furthermore,
it is situated in close proximity to plush residential complexes and malls of Sohna road. The strategic
location of the project has been already taken hand‐in‐hand by the global IT majors. They even placed
their SEZ in Gurgaon because of IT hub and they believe in Gurgaon bulk orders are received.
Assotech believes Uppal Developer Pvt. Ltd. to be their major Competitor because Uppal is also coming
up with and IT/ITES SEZ in Gurgaon which is already notified and Assotech is still waiting for their
notification. Professionally managed company, experience, modern techniques and technology for
infrastructure are few strength of Assotech which they believe makes them ahead of their competitors.
Assotech is currently having overseas clients, good links and ready investors. They believe that they
won’t be facing any problem for attracting clients for their SEZ. Assotech is also having a joint venture
with GHI Finlease & Investment Pvt. Ltd.
Assotech is also ready with their Master plan and finance but waiting for notification. As soon as they
get notified they will start with construction. They are even waiting for government policies to stabilize
which could take 6 months according to them. It will take approximately 3 years to complete this
project. They have plans for their non‐processing zone like service apartments, recreational activities
and clubs.
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DLF Limited
The DLF Group has charted it next growth steps to retain its leadership position in India. Already a major
player in locations across the country, including key metro cities and urban centers, DLF, with over Six
decades of experience, is focusing on strengthening its lateral and vertical business drivers.
The group is capitalizing on emerging market opportunities to deliver high‐end facilities and projects to
its wide base of customers by constantly upgrading its internal skills and resource capabilities.
The DLF Group has made significant progress in pursuing new business opportunities in hotel,
infrastructure and SEZs (Special Economic Zones). DLF and Laing O’Rourke, UK is the strategic partner in
several infrastructure projects. Laing O’Rourke are global leaders in construction credited with landmark
projects such as the Dubai International Airport, Millennium Tower and the T‐5 Airport Terminal in UK.
Through this joint venture (JV) the Group plans construction of projects in the sectors of expressways and
airports.
DLF believes that the following are its primary competitive strengths:
• Brand name and reputation
• Extensive land reserves
• Scale of operations
• Strategic locations
• A tradition of innovation
• Experienced and dedicated management
DLF Universal(SPV), has chalked out plans to invest anywhere between US$ 6.7 billion‐US$ 8.9 billion
over the next ten years for setting up at least half‐a‐dozen Special Economic Zones across the country.
DLF India has proposed SEZ in many parts in India like Amritsar, Ludhiana, Gurgaon and Ambala. Broadly
speaking, DLF SEZs have targeted the IT Sector; however, DLF Townships have been on the agenda of DLF
Universal.
DLF is coming up with around 6 SEZs in Haryana of which four are single product and two are multi
product. The entire four single product SEZs are on IT/ITES domain with 2 of them have been notified and
land for all the SEZ have been acquired or you may say the land was already present in their land bank.
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Single Product IT/ITES SEZs
DLF is coming up with its four IT/ITES SEZs in Gurgaon, of which two have been notified (30.15 Acre, Ph‐
1 Gurgaon and 26.825 Acre, Gurgaon SEZs). For other two In‐principal and Formal approval has been
taken and waiting for notification. The land acquisition was not big task for DLF as, requirement was
small and they were already having a land bank.
DLF Believes Wipro and Infosys would be their major competitors for IT/ITES SEZs as they are well
established IT firms and are having good contacts with a large no. of IT companies. Therefore, it could
pose a threat for DLF.
To attract clients for their SEZs the strategy would be like, going for public offering so that anyone can
buy a place in the SEZs. The company might even take help of some other firms which would help them
earn clients.
They are ready with their Master plan and working on its approval. After which they would be starting
with the construction work, do project monitoring analysis, planning etc. Construction will be done by a
U.K. based construction company, Laing O’Rourke. For the next one year they would be working over
infrastructure.
Multi Product SEZs
DLF Universal is having a Joint Venture with HSIIDC (Haryana State Industrial and Infrastructural
Development Corporation) for both of its Multi Product SEZs.
The Multi Product SEZ at Gurgaon is being developed by DLF Limited over an area of about 20000 acres
on Gurgaon – Jaipur Highway stretching between Manesar & Pataudi. The project cost of this SEZ has
been estimated at Rs.26000 crore which is proposed to be financed through an equity funding through
internal accruals of DLF and its Group companies and loans from infrastructure funding institutions and
international banks.
A 2500 acres SEZ is also being set up by DLF in District Ambala with a capital cost of Rs.6700 crore. This is
the first SEZ proposal approved by the HIPB outside the National Capital Region (NCR). The project is
scheduled to be implemented in two phases to be completed in eight years. When implemented, the
Ambala SEZ is likely to attract an investment of around Rs.4000 crore besides exporting goods worth
Rs.6000 crore annually. A captive power plant has also been envisaged for the project which is expected
to provide direct employment for more than 80,000 persons.
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The DLF 20,000 Acre project which has received “in‐principle approval” of the Central government is
proposed to be set up on both sides of (Gurgaon‐Jaipur) National Highway 8, bisecting the proposed
Kundli‐Manesar‐Palwal (KMP) Expressway. The proposed DLF SEZ will be developed in four phases. The
first phase of 500 acres is expected to be completed by 2009 and the final phase by 2018.
The company expects that the SEZ will attract an investment of Rs 1, 24,000 crore in terms of fixed assets
like industrial, commercial and residential stock. The annual export potential of the project has been
pegged at $10‐12 billion once it is fully operational.
The company also proposes to demarcate a “free trade zone” within the processing area of the SEZ,
which would lay emphasis on trading of goods and commodities manufactured within the SEZ, their
packaging/ repackaging/ exhibition and the service sector, including BPOs, IT and ITES companies.
DLF will also develop a 20 million square feet of built‐up infrastructure, which would include business
centres, Logistics Park, warehouses and hotels.
Almost 10,000 acres will be developed solely as residential zone, providing all categories of houses for
people working in the SEZ. DLF will also develop about 2,000 to 3,000 acres as institutional area,
providing educational, healthcare and research infrastructure.
DLF also proposes to set up a gas‐based captive power plant of 2,000 MW capacity at a cost of Rs 6,000
crore.
According to cautious company estimates, the land cost for the project will work out to Rs 10,000 crore.
The development cost has been estimated at Rs 6,142 crore, the cost for readily built infrastructure at
Rs 2,625 and the cost of project management at Rs 938 crore.
Faced with the new rule on special economic zones (SEZs) that limits the maximum area to 5,000
hectares, real estate major DLF may split its proposed mega zone in Haryana into two tax‐free enclaves
in the region. DLF just had started the process of acquiring land. Now, there will be one SEZ of 5,000
hectare but if they get more land, they may set up another SEZ of 3,000 hectare in Gurgaon.
DLF finds Reliance as their major competitor for the 20000 Acre SEZ which is close to the Reliance 25000
Acre SEZ at Jhajjar ‐ Gurgaon. Suncity, according to them is also a competitor for their 2500 Acre SEZ in
Gurgaon as Suncity is also coming up with around 8000 Acre SEZ at Ambala, Haryana.
To attract clients for their SEZs the strategy would be like, going for public offering so that anyone can
buy a place in the SEZs. The company might even take help of some other firms which would help them
earn clients.
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The land acquisition process is being carried on along with the designing of the Master plan. After this
they would be working on the construction part, doing project monitoring analysis, planning etc.
Construction will be done by a U.K. based construction company, Laing O’Rourke. For the next one year
they would be working over infrastructure.
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D.S. Constructions Ltd.
DSCL is a pioneer in Build Operate Transfer (BOT) infrastructure development and engineering with
projects under execution in the Highways, Expressways & Railway, Hydro Power and now pursuing
Privatization of Airports & Ultra Mega Power Projects, Special Economic Zones, etc. in a short span of 5
years.
D S Constructions Ltd. has received in‐principle approval from the Ministry of Commerce & Industry,
Government of India to set up and develop two (2) Special Economic Zones, one in the State of Haryana
and the other in the State of Himachal Pradesh. Both the SEZs will be Multi‐Product SEZs and will cover
an area of 5,000 hectares (Haryana) and 250 hectares (Himachal Pradesh) respectively with an
estimated investment of INR 1,20,000 Million and INR 6,000 Million respectively. The SEZs shall be
developed in an integrated manner catering to business (industrial and commercial) activities facilitated
by social, recreational and residential infrastructure, utilities, facilities and services. This will be done
along the lines of some of the internationally known SEZs such as Jebel Ali in Dubai, Shenzhen and
Suzhou in China.
SEZ in Palwal, Haryana
The SEZ in Haryana will cover an area of 5,000 hectares (12,500 acres) and shall be developed in phases.
The land use plan of the zone being prepared in consultation with internationally reputed consultants
will adhere to various regulatory norms under the provisions of the SEZ Act 2005 and SEZ Rules 2006.
The planning and development norms would be comparable to the best in the world and shall provide
for open spaces, green areas, internal / arterial roads and walkways and well‐supported by in‐zone
utilities and facilities.
The SEZ shall attract and host a number of units in the manufacturing sector such as Auto Components,
Engineering Goods, Pharmaceuticals, Processed Foods, Electrical and Electronic Goods, Readymade
Garments, Gems and Jewellery, Sports Goods, Handicrafts and service sectors such as IT enabled
Services (ITES), Logistics and Warehousing and Trade Facilitation.
The SEZ shall have a dedicated captive power plant exclusively for the units / residents within the zone.
It is estimated that the SEZ at Palwal shall create direct and indirect employment opportunities for over
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1 lakh people and shall go a long way in upgrading the socio‐economic conditions of the populace in the
surrounding region.
Under the company’s plans, nearly 4,250 acres would be utilised for setting up of Light Industrial Units,
including Auto Components, Pharmaceuticals, Food Processing, Printing and Publication, Electrical and
Electronic goods, Garments, Value addition processing units, Gems and jewellery, toys and sports goods,
Handicrafts and Trade and Business Enabling Industries.
It plans to build up residential and housing facilities in 3,750 acres whereas 375 acres shall be allocated
for Commercial purposes while the remaining 5,000 acres shall be allocated for service areas and
infrastructure, such as open spaces, green areas, roads and walkways, public utilities, administration
blocks and inland container depot etc.
The farmers of the SEZ area would not be in any loss as the company had decided to spend 25 per cent
of its total cost of the project which comes to INR 2,500 crore for land acquisition and INR 4,750 Crores
on developmental activities. The remaining INR 2,750 crore would be utilised for other related areas.
The project would be completed over a period of ten years in two phases and 35 per cent construction
would be undertaken in the first year of its construction.
Till date approximately 30‐40% of land has been acquired by the company. The company is not taking
any help of the government for acquiring land. It is purchasing the land directly from the farmers
utilizing all of its resources. DSCL considers that their brand name and their money power is their major
strength. They focus on providing a comfortable environment to their clients. Reliance Industries Ltd. is
their major competitor as told by the executive, DSCL.
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Emaar MGF Land Pvt. Ltd.
Emaar MGF Land Private Limited is a joint venture between Emaar Properties PJSC Dubai, one of the
world’s leading real estate company and MGF Development Limited, among India’s leading real estate
developer. This partnership promises to usher in a real estate revolution in India with the development
of world class townships across the country. A collaboration that has brought in the largest FDI in India’s
real estate space and opened up the horizons of tomorrow.
Emaar MGF has also floated a 50:50 joint venture with Australian construction major Leighton Asia to
execute projects worth $2.5 billion in India over the next five years. The joint venture has earmarked an
initial investment of $150 million for the first three years.
Emaar MGF says that they have brought the largest‐ever FDI in the real estate sector in India. Emaar‐
MGF has also tied up with Accor, global leaders in economy and budget hotels, to set up 1,000 budget
hotels in India under the brand name Formule 1 in the next 10 years. They say they want to change the
way realty business is done in India.
Emaar‐MGF says that their projects lined up in the joint venture were in six verticals ‐ residential,
hospitality, commercial and retail, education, healthcare and IT parks and special economic zones (SEZs).
Emaar MGF is engaged in Pan‐India projects includes nine special economic zones (SEZs) and 50
hospitals.
Emaar MGF believes that there is a positive future for SEZ market in Haryana. Emaar also has a belief
that they won’t be facing any competition in this sector. They say that they don’t consider anyone their
competitor. According to them their strength is their international standards in handling projects and
their ability to take on big scale projects. The marketing strategy to attract clients for their SEZs is they
planning to invite the best companies in the specific product category. At present also they do have few
clients for their SEZs. For power management and water supply they are looking at various options i.e.
energy efficiency, recycling and green buildings.
Emaar MGF is coming up with around 10 SEZs in Haryana. This includes three Multi Products and seven
Single Products (Five IT/ITES, Auto Ancillary and Gems & Jewellery)
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Single Product IT/ITES SEZs
Emaar MGF is coming up with five IT/ITES SEZs in Haryana and all are going to be developed in Gurgaon.
The reason why they opted for Gurgaon is because they think this location makes sense economically
and is the most viable option for the company. In‐principle and formal approval has been taken for
these SEZs. Company is working on land acquisition part for all these SEZs.
1. Lakhnaula, Gurgaon with a 600 Acre area: For this SEZ 50% land has been acquired by now.
Company is working on land acquisition part. They have planned to set up 210 Acre for
residential purpose and 60 Acre of land for commercial activities in their Non‐Processing zone.
For the business model of coming years some of their financial details are:
a. Cost of Land and Development – Rs 480 Crores
b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage
treatment Plant, etc ‐ Rs 84 Crores
2. At Gurgaon with a 70 Acre area: For this SEZ full 100% land has been acquired. Company is
waiting for the notification. They have planned to set up 24.5 Acre for residential purpose and 7
Acre of land for commercial activities in their Non‐Processing zone. For the business model of
coming years some of their financial details are:
a. Cost of Land and Development – Rs 42.50 Crores
b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage
treatment Plant, etc ‐ Rs 8.25 Crores
3. Shikohpur, Gurgaon with a 250 Acre area: For this SEZ 30% land has been acquired by now.
Company is working on land acquisition part. They have planned to set up 87.5 Acre for
residential purpose and 25 Acre of land for commercial activities in their Non‐Processing zone.
For the business model of coming years some of their financial details are:
a. Cost of Land and Development – Rs 150.50 Crores
b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage
treatment Plant, etc ‐ Rs 27.10 Crores
4. Villages Kherki Daulla and sihi, Gurgaon with a 50 Acre area: For this SEZ 95% land has been
acquired by now. Company is working on land acquisition part. They have planned to set up 17.5
Acre for residential purpose and 5 Acre of land for commercial activities in their Non‐Processing
zone. For the business model of coming years some of their financial details are:
a. Cost of Land and Development – Rs 30.15 Crores
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b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage
treatment Plant, etc ‐ Rs 5.5 Crores
5. Bans Hariya, Gurgaon with a 300 acre area: For this SEZ 35% land has been acquired by now.
Company is working on land acquisition part. They have planned to set up 105 Acre for
residential purpose and 30 Acre of land for commercial activities in their Non‐Processing zone.
For the business model of coming years some of their financial details are:
a. Cost of Land and Development – Rs 241 Crores
b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage
treatment Plant, etc ‐ Rs 42.6 Crores
Single Product Gems & Jewellery SEZ
Emaar MGF is coming up with a 100 Acre Gems & Jewellery SEZ in Haryana and its going to be
developed at Naweda Fatehpur, Gurgaon. The reason why they opted for Gurgaon is because they think
this location makes sense economically and is the most viable option for the company. In‐principle and
formal approval has been taken for these SEZ. Company is working on land acquisition part for this SEZ.
For this SEZ 95% land has been acquired by now. Company has planned to set up 35 Acre for residential
purpose and 10 Acre of land for commercial activities in their Non‐Processing zone. For the business
model of coming years some of their financial details are:
a. Cost of Land and Development – Rs 80.25 Crores
b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage
treatment Plant, etc ‐ Rs 14.10 Crores
Single Product Auto Ancillary SEZ
Emaar MGF is coming up with a 250 Acre Auto Ancillary SEZ in Haryana and its going to be developed at
Banskusla, Gurgaon. The reason why they opted for Gurgaon is because they think this location makes
sense economically and is the most viable option for the company. In‐principle and formal approval has
been taken for these SEZ. Company is working on land acquisition part for this SEZ.
For this SEZ 76% land has been acquired by now. Company has planned to set up 87.5 Acre for
residential purpose and 25 Acre of land for commercial activities in their Non‐Processing zone. For the
business model of coming years some of their financial details are:
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a. Cost of Land and Development – Rs 200.6 Crores
b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage
treatment Plant, etc ‐ Rs 34.7 Crores
Multi Products SEZ
Emaar MGF is coming up with 3 SEZ in Haryana, of which two in Gurgaon and one in Faridabad. The
reason why they opted for these places was because they think this location makes sense economically
and is the most viable option for the company. In‐principle and formal approval has been taken for
these SEZ. Company is working on land acquisition part for all this SEZ.
1. Village Boda Kalan, Gurgaon with a 10,000 Acre area: For this SEZ 5% land has been acquired by
now. Company is working on land acquisition part. They have planned to set up 4000 Acre for
residential purpose and 2000 Acre of land for commercial activities in their Non‐Processing
zone. For the business model of coming years some of their financial details are:
a. Cost of Land and Development – Rs 6020 Crores
b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage
treatment Plant, etc ‐ Rs 1028 Crores
2. Jahajpur, Gurgaon with a 5000 Acre area: For this SEZ 25% land has been acquired by now.
Company is working on land acquisition part. They have planned to set up 2000 Acre for
residential purpose and 1000 Acre of land for commercial activities in their Non‐Processing
zone. For the business model of coming years some of their financial details are:
a. Cost of Land and Development – Rs 3010 Crores
b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage
treatment Plant, etc ‐ Rs 514 Crores
3. Machigargh, Bhupani, Faridabad with a 2500 Acre area: For this SEZ 50% land has been
acquired by now. Company is working on land acquisition part. They have planned to set up
1000 Acre for residential purpose and 500 Acre of land for commercial activities in their Non‐
Processing zone. For the business model of coming years some of their financial details are:
a. Cost of Land and Development – Rs 1500 Crores
b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage
treatment Plant, etc ‐ Rs 262 Crores
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Luxor Cyber City Pvt. Ltd.
The boom in real estate in India has opened up new growth opportunities for blue‐chip corporate
houses ready to expand in terms of investments, operations and strategic partnerships. In tune with the
current trend, the Luxor Group has diversified into real estate development in 2003 and tied up with the
renowned Uppal Group, a corporate developer & builder with three decades of industry experience and
more than 500 projects to its credit. Our strategic initiative to enter the capital‐intensive commercial
real estate development segment not only ensures rapid growth but also helps create value for
shareholders as the new ventures will be a standing testimonial of the high‐profile brand image enjoyed
by the Luxor Group spelling impeccable quality and unfailing reliability.
In a bid to promote the diversification move, the Luxor Group has made huge investments in
commercial real estate development and acquired suitable land for such premium projects as cyber
cities, luxury hotels, office complexes, commercial plazas and Special Economic Zones (SEZs). The Luxor‐
Uppal consortium has already started operations across Delhi and the National Capital Region (NCR) –
undertaking a state‐of‐the‐art IT Park development in Gurgaon and building mega complexes in the
heart of New Delhi to meet the growing demands for high‐value office/commercial space. The Group is
also developing an ultra‐modern Special Economic Zone (SEZ) in the NCR to help serve diverse industry
segments.
Luxor Group has got a nod for the Gurgaon SEZ (Special Economic Zone) to be called Luxor Cyber City. A
Cyber City, as explained by the Haryana Government Master plan 2021 is: "Cyber City means self
contained intelligent city with high speed communication access to be developed for nucleating the
Information technology concept and germination of medium and large software companies".
The SEZ land is located at Village Sikohpur, Gurgaon and it spread over an area of 28 hectares. The
project is aims at concentrating on the IT and IT Enabled Services (ITES) companies. The facilities
provided would be housing apart from the IT space, supporting infrastructure such as, restaurants,
housing, schools, hospitals, entertainment zones among other essential services.
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Orient Craft Infrastructures Ltd.
Garment exporter Orient Craft Ltd (OCL) plans to develop a 650‐acre textile Special Economic Zones in
Gurgaon with an investment of Rs 2,000 crore. In the official Master plan 2021 a total of 4,570 hectare is
allocated to the SEZ. They have acquired 460 acres of land for the purpose and will expand it to 750
acres. The first phase of the SEZ consisting of 284 acres has been completed with an investment of Rs
500 crore as said by OCL Managing Director, Mr. Sudhir Dhingra.
The `boutique SEZ' will house specialty players of the textile industry and is expected to provide
employment to about 30,000 people.
The other two phases are proposed to be completed by 2010 end and will also house some power
companies and hotels. Part of the rest of the investment of Rs 1,500 crore will come from these hotels
and other companies.
The company has a partnership with Europe's s. Oliver, a retailer of garments and lifestyle products. The
partnership entails setting up of retails stores in metros and other major cities in the next five years.
Other than Oliver, Orient Craft boasts of a long list of international clientele including Gap, Banana
Republic, Tommy Hilfiger, Marks & Spencer, and Ralph Lauren, among others.
The reasons that made the company to venture into SEZs were its 40 years of expertise in garments and
apparel and its hi‐tech infrastructure. They intend to come up with a unique product. The SEZ will be
having industrial, institutional, residential, and commercial area. The company finds that its experience
in garments, clientele all across the world and its financially sound position is its strength and motivates
it to venture into SEZs.
The project will take around 4 years to complete and by October this year the construction work will
begin.
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Parsvnath Developers Limited
Parsvnath Developers, the Delhi‐based real estate developer is one of the leading real estate
development companies in India with operations in 41 cities and 14 states.
Strength of Parsvnath:
• Robust land bank at emerging locations
• Reputed developer
• Well knitted marketing web
• Diversified business model
Parsvnath is coming up with 9 SEZ all over India. Parsvnath has been very innovative while placing their
SEZs in India. They have placed their SEZs according to the specialty of the area like for example, Agra is
famous for leather so they are setting up a leather SEZ at Agra, Moradabad is famous for Handicraft so a
Handicraft SEZ at Moradabad, similarly Gems & Jewellery SEZ at Jaipur, IT/ITES SEZ at Gurgaon, Food
Processing SEZ at Sonepat and so on.
Parsvnath is having two SEZs in Haryana. One is 250 Acre IT/ITES SEZ at Gurgaon‐Sohna Road Gurgaon
and another one is 250 Acre Food Processing SEZ at Kundli, Sonepat, Haryana.
IT/ITES SEZ Gurgaon
This is a 250 Acre SEZ, In‐principal and formal approval has been take for the SEZ. Company is waiting for
the Notification as full 100% land has been acquired. They believe that they won’t be facing any
competition as by 2009 STPI norm is going to end due to which all the companies won’t be able to utilize
the Tax benefits. This will make IT companies to opt for SEZs because of several incentives and tax
benefits. Parsvnath so believe that early move advantage, brand name and experience in developing
several infrastructures like DMRC’s project, makes them ahead of their competitors.
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48
Road shows, share plans and demonstration are few strategies that company will be performing for
persuading clients for their SEZ. Company is basically waiting for notification after that they will be
working over Master Plan approval and its construction. Company will depend on Government for
power and water. Company has even planned housing, commercial and malls for their non Processing
Zone. According to them it will take near about 2‐3 year complete.
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50
Food Processing SEZ Kundli, Sonepat
This is a 250 Acre SEZ, In‐principal and formal approval has been take for the SEZ. Company has acquired
50‐80% of land till yet. They believe that they won’t be facing any competition as they would be having
monopoly in this sector, as no other developer is coming up with the same SEZ. Parsvnath so believe
that early move advantage, brand name and experience in developing several infrastructures like
DMRC’s project, makes them ahead of their competitors.
Road shows, share plans and demonstration are few strategies that company will be performing for
persuading clients for their SEZ. Company is basically working over land acquisition part and makes it
notified as soon as possible then will work over Master Plan and its approval following to construction.
Company will depend on Government for power and water. Company has even planned housing,
commercial and malls for their non Processing Zone. According to them it will take near about 2‐3 year
complete.
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Raheja Haryana SEZ Developers Pvt. Ltd.
The Rajan Raheja Group vision is to be a multi‐talented player and rank amongst the top players in each
and every sphere of its operation.
In this endeavor they have spread their scope from Real Estate to Building materials, Hospitality,
Automotive batteries, Cable TV, Publication, Retail, Food, Mutual Funds, Insurance, Health and beauty,
Software development and Petrochemicals.
The group has ventured into SEZ by the name of Raheja Haryana SEZ Developers Pvt. Ltd. The group is
coming up with two SEZs in Haryana: one in multi‐product and the other in Electronic Hardware &
Software including ITES. They were the first in SEZ market to get in‐principal approval from the
Government
Ghatta, Gurgaon
Raheja Haryana SEZ Developers Pvt. Ltd is coming up with a single product SEZ in Electronic Hardware &
Software including ITES SEZ in Ghatta, Gurgaon. The area of this single product SEZ is 330 acres which
has been acquired fully. The group is expecting the notification in a short time. As soon as they get the
notification, the construction work will begin.
The facilities provided in the SEZ would be housing for the workers, hotels, recreational activities etc.
The power and water supply will be taken by the government.
As Gurgaon is developing as IT hub, therefore Raheja selected Gurgaon in NCR for the construction of IT
SEZ. In their view, the supply of IT services will be not adequate to fulfill the demand in future.
Competition is bound to be there. Therefore, they think DLF Limited and all up coming small companies
will give them competition.
Location of the land and the strategy to make farmers their partners are strengths of the group.
According to Raheja’s, if the farmers will have faith in the company and if they’ll remain satisfied then
the company will not be having any problem in acquiring land from them.
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By next year, the company plans to prepare the master plan for the SEZ and simultaneously look for
foreign investors. Once this is done construction part will start.
Dharuhera‐ Rewari Belt
With a positive view of the SEZ market in Haryana, The Rajan Raheja Group is coming up with SEZ in
Dharuhera‐Rewari Belt. The SEZ will be spread across an area of 5000 acres and will be a multi‐product
SEZ. The Central Government has given principal approval for the SEZ and till date 5‐10% land has been
acquired. The placing of this multi‐product SEZ has been done keeping in mind the expansion of
Gurgaon City. The SEZ will come under industrial area once it expands. The group considers that the land
of its SEZ is the best located land in Palwal, Gurgaon near Delhi‐Jaipur railway line.
The major competitors, according to the group, are DLF Limited and Reliance Industries Ltd. Yet it
considers the placing of its SEZ as its strength. They have a unique way of working on SEZs. They plan to
purchase the land directly from the farmers and in return make them partners in the company. They
also intend of providing employment to at least one member of the farmers’ family and share some
percent of profits with them. The construction of multi‐product SEZ will start on the similar lines once
IT/ITES SEZ becomes fully operational.
The plans for this SEZ include rain water harvesting, housing facilities for workers, hotels, recreational
activities, setting up of harvesting plants, corporate farming, electricity production through wind mills,
etc.
According to executive whom we interviewed, Raheja Haryana SEZ Developers Pvt. Ltd. it will take
around 20 years for a fully operational multi‐product SEZ.
53
Reliance Haryana SEZ Pvt. Ltd.
Reliance Industries Limited
Reliance Industries Limited, founded by Dhirubhai H. Ambani (1932‐2002), is India’s largest business
house having activities that span exploration and production (E&P) of oil and gas, refining and
marketing, petrochemicals (polyester, polymers and intermediates), textiles. The company exports its
products to more than 100 countries the world over. Reliance emerged as India’s Most Admired
Business House, for the fourth successive year in a TNS Mode Survey for 2004.
Following are the some of the key financial indicators‐
Reliance Contributes‐
7.7% of India’s total Exports
7.9% of Government of India’s indirect tax revenue
4.5% of the total market capitalization
11% weightage in the BSE Sensex
8% in the Nifty Index
The Reliance Group Companies include: Reliance Industries Limited, Indian Petrochemicals
Corporation Ltd. and Reliance Life Sciences Limited. In the Fortune magazine list of the Top 500
global corporations, issue dated 25th July 2005, Reliance Industries has been ranked at number 417,
up from 482 in 2004.
The Reliance group is well recognized for its ability to set up Mega projects and execute them in
record time using state ‐of –art technology, processes and systems. Its expertise lies in working on
economies of scale and developing integrated right from the raw material to the reaching of the
finished product to the end consumer.
54
Some of the projects of mega magnitude that it has undertaken are‐
Establishing the Patalganga Petrochemical factory
Commissioning of the world’s third largest refinery at Jamnagar in a record time
Setting up of an over 60,000 kms of Optic fiber based telecom network and reaching over
10 million customers to emerge as a strong contender for the top position in the Indian
telecom market.
The Reliance SEZ at Haryana‐ Development of a Master Plan
Background
Reliance proposes to develop the SEZ in Haryana as part of its vision to develop state‐of‐the‐art
infrastructure for the nation. The SEZ should be able to attract MNC developers as investors also. To this
end, as per Reliance’s internal policies, the norms and standards behind the configuration of
infrastructure will be kept as high as possible.
The National Capital Region includes Delhi and its satellite towns. One third of Haryana is part of the
NCR plan. Gurgaon, Rohtak, Panipat and Faridabad are some of the key districts that have to be
developed as part of the NCR. Haryana already boasts of industrial hubs of Faridabad and Gurgaon. In
the recent past Manesar has been developed as an industrial hub and plans are on way to establish an
Industrial township in Manesar.
In the last decade economic development has taken place in the suburbs of Delhi NCR. It has many
multinationals as well as National Companies shifting and establishing their headquarters in the City.
The development of shopping malls, commercial and residential infrastructure has been tremendous
but there is still a lot to be desired.
55
Learning from these expansions of the NCR
The growth of the suburbs of Delhi has been exponential and has resulted in‐
These and some more critical issues will require Reliance to ensure that the project is taken up in a
planned manner on the drawing board with a complete master plan of developing a First World City,
and its continued growing needs.
It is for this reason that the plan will emphasize on the internal development of roads, water supply,
power generation and supply and sewerage. Adequate development of external infrastructure such
as full development of connectivity to the KMP expressway, National Highway (NH 8) will also be of
equal importance. It is proposed to have a Rail Line within the SEZ along with an International
Container Depot. Development of an Airport to cater to the International as well as Domestic needs
of Cargo and Passenger movement will also be a part of the plan. It is proposed by the Haryana
government to extend the Metro Link from Delhi to Manesar. This would provide for linkage to the
proposed SEZ also.
The Focus of the SEZ will be on development of non/low‐polluting medium and large industries, as
also trading and services. All facilities required for industries together with housing for the
entrepreneurs and employees working in the area are being planned for the Special Economic Zone.
The proposed Special Economic Zone will function as an integrated package with all the required
facilities, which will ensure sustainable development of medium and large scale industries and
service activities with sufficient provision for future growth and expansion.
Locating the Reliance SEZ
The intention is to build a fully integrated multi product economic zone. The proposed location will
be off National Highway 8 in Gurgaon and moving north extends into Jhajjar district adjacent to the
proposed Kundli‐Manesar‐Palwal (KMP) expressway. The size of the SEZ will be in excess of 10,000
hectares (25,000 acres).
56
SEZ Master Plan‐ General Considerations
The entrepreneurs who will set up industries in the SEZ would undoubtedly have their own
individual requirements. However, the Master Plan must provide for availability of built‐to‐use
design factories and flatted factories according to the customer’s requirement. Besides, certain
communal‐level facilities will have to be provided such as‐
Amenities in the form of landscape features such as open green areas, green buffers along
the peripheral, green belts as a part of arboricultural scheme, etc.
Facilities for Industrial Waste Management (collection, processing and disposal)
Availability of labor at reasonable cost.
Proximity to source of supply of raw materials
Transportation facilities to allow linkages with raw material sources and ancillary supplies
Uninterrupted availability of power supply, electricity, water, sewerage etc.
Besides, the Master Plan will provide for:‐
Availability of services like security, restaurants, etc. on commercial lines.
Amenities such as clubs, recreation centers, family entertainment centers, auditorium,
community halls, etc.
The SEZ units would, be subject to the local laws, rules and regulations in regard to area planning,
sewerage disposal, pollution control and the like, and it is expected that a single authority clearance for
all matters is created.
While planning the SEZ development, the following factors will be taken into account:
SIZE:
Size of the SEZ is an important issue, especially for a fast expanding region of the NCR. Although as per
present government regulations the minimum size of SEZ should be 1000 hectares, the global
experience as well as per the experience of expanding cities indicates that the size of the land must be
such that it can cater to development of a fully integrated city, with complete amenities such as Airport,
ICD, Rail links as well as a bustling economic activity mix. The size must cater to the demands of the
growing new economic initiatives.
57
Hence in order to build a strong economic zone that has fully integrated systems of infrastructure
Reliance is looking at establishing an SEZ of a size in excess of 10,000 Hectares (25,000 Acres)
Layout:
The whole area will be suitably divided into a number of identified activity centers of different sizes. It is
advisable to develop standardized modules of the plots within the proposed activity mix. This will
automatically allow flexibity in planning to accommodate future development. In addition the layout will
be developed with complete understanding of the phasing program. Integration of the financial aspects
with physical planning aspects is the most important factor for success in implementation.
Management:
Various aspects such as monitoring of the polluting control norms and standards control over goods,
storage and handling of industrial waste, common effluent treatment, etc. need advance planning. The
Master Plan would take into account the relevant aspect of the management of the entire SEZ and the
city.
Services and amenities:
The Master Plan will take into account planning for services and amenities. Advance planning of services
and amenities avoids problems of administration later. Advance planning can substantially reduce the
problems arising from maintenance of infrastructure.
Transportation:
The Mater Plan will lock at the transport linkages. As the SEZ requires regional, national as well as
international linkages for freight movement, it generates a lot of traffic. The plan will have to take into
account the linkages with the NH 8, KMP Expressway, Rail linkages, the Indian Railways as well as Metro
Rail Link to Delhi and the other parts of the country and the development of an Airport for International
traffic. Delhi enjoys the advantages of an advantage of an ideal location at the regional level, as it is a
multi‐ modal transport interchange mode.
58
Benefits of the Reliance SEZ
Benefits to the citizens of Haryana
• Establishment of world class city
• High quality of life in the SEZ
• Huge employment opportunities
• Access to international standard Facilities like Rail, Airport etc.
• World class infrastructure, institutions, recreation centers, offices at one place
Benefits to the State of Haryana
• Transfer of technology
• Significant investment in the state
• SEZ ICD to benefit surrounding geographic area
• Planned development for quality of life
• Benefits to units by forward and backward linkages in SEZ
Benefits to the Units
• 100% FDI allowed
• Income Tax rebate on investment in SEZ
• Exemption from Income tax
• Exemption from electricity duty and taxes on sale of self‐generated and purchased power
• Stamp Duty exemption
• Exemption from Service and Value Added Tax
• Exemption from Customs duties
• Single Window Clearances
59
Rockman Projects Ltd.
Established over two decades back Rockman Group has had diverse business interests including Imports,
Advertising & Marketing Services, Breweries, Metal & Coal, and Real Estate etc.
Rockman has also joined hands with some of the World's best names to support its new initiative. These
include its technical partners.
Jurong International Group‐ Singapore is one of the largest SEZ developers in the world with a presence
in 29 countries and 104 cities. They will assist Rockman in Master Planning, Setup, Design, Infrastructure
Engineering Services, Architecture & Landscape, Technical Development and implementation of the
master plan.
Ernst & Young, Management Consultants will be teaming up with Rockman to liaison with various
Government Bodies for necessary permissions etc.
CB Richard Ellis Professional Consultants will carryout Market Study (analysis of Location Dynamics,
Macro Economic Analysis) work out feasibility in Joint Venture participation, Demand Assessment and
Development Planning, Investment services. Project Structuring, making of the Project Report, Debt and
Equity Funding etc.
In Multi services SEZ that is coming up at Delhi‐Jaipur National Highway, 10 km from IMT, Manesar
spread over an area of 250 acres, Trading and Warehousing services, Computer Software Services,
Professional Services, Construction and related services, Educational, Environmental, Financial, Hospital,
Tourism, Recreational, Biotechnology and Entertainment services etc can be set up.
The land has already been acquired fully and the in‐principal approval been taken by the Central
Government. Within 2 months formal approval will be taken and by the year end the company will get
its land notified. Then construction work will start which will take about 18 months to complete. The
company considers Uppal Developer Pvt. Ltd. as its competitor.
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Shreeaumji Developers Pvt. Ltd.
Shreeaumji Developers Pvt. Ltd. is a new entrant in the market of SEZ. This company is a Joint Venture of
Unitech Group, Jai Bharat Maruti and Minda Industries. The CEO of Shreeaumji Developers Pvt. Ltd. has
been an employee of Unitech Group. He started this venture with the help of the two companies.
The company is coming up with two SEZs in Gurgaon: one in Automotive and the other in Apparel.
Faruknagar, Gurgaon
The SEZ to be constructed at Faruknagar is an Automotive SEZ. The area of this SEZ is 250 Acres. This
single product SEZ has received in‐principal approval from the Central Government and has acquired
almost 70% of the total land. (50% has been acquired and 20% is in process of acquisition.)
The land has been acquired by the company itself till now. But the company will take help from
Government if the need should arise. They have location benefit as they already have a plant in
Gurgaon.
The company plans to come up with housing and commercial activities in the non‐processing zone. In
the beginning, the power and water supply will be catered by the government. Later on they’ll take up
water harvesting.
The company finds its strength in the technical expertise of Unitech and its joint venture in automotive
sector. It al ready has a tie up with Nissan. Funds are not its problem at present. At later stage if need
arises then they’ll be taking help from any financial institution.
Shreeaumji Developers Pvt. Ltd. considers Emaar MGF Land Pvt. Ltd. as their competitor. But in regard
with their marketing of their SEZ, they have no problems as such. They already have tie up with
Japanese companies. And once the master plan gets finalized and infrastructure gets constructed they
will start the marketing. As for the next one year they will concentrate of acquiring the remaining land
and getting it approved. Once it gets formal approval they will start with marketing and housing and
commercial activities. It will take around 2 years for the construction work to get over.
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Faruknagar, Gurgaon
Another SEZ that has to be constructed at Faruknagar is an Apparel SEZ. Just like Automotive SEZ the
area of this SEZ is 250 Acres. This single product SEZ has also received in‐principal approval from the
Central Government and has acquired almost 70% of the total land. (50% has been acquired and 20% is
in process of acquisition)
The land has been acquired by the company itself till now. But the company will take help from
Government if the need should arise. They have location benefit as they already have a plant in
Gurgaon.
The company plans to come up with housing and commercial activities in the non‐processing zone. In
the beginning, the power and water supply will be catered by the government. Later on they’ll take up
water harvesting.
The company finds its strength in the technical expertise of Unitech. Funds are not its problem at
present. At later stage if need arises then they’ll be taking help from any financial institution.
Shreeaumji Developers Pvt. Ltd. considers Orient Craft Infrastructure Ltd. as their competitor in apparel.
But in regard with their marketing of their SEZ, they have no problems as such. Once the master plan
gets finalized and infrastructure gets constructed they will start the marketing. As for the next one year
they will concentrate of acquiring the remaining land and getting it approved. Once it gets formal
approval they will start with marketing and housing and commercial activities. It will take around 2 years
for the construction work to get over.
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Suncity Haryana SEZ Developers Pvt. Ltd
Suncity Projects Pvt. Ltd is a pioneer in conceiving and executing a profusion of urbane real estate
projects arraying from Townships to Group housing to luxury Apartments to shopping Malls to Office
Complexes. The group is focused on innovative design, superior standards of construction, customer
service and Community values. With break ‐through technologies and development mediums the group
has with every step, progressed towards giving an outstanding result.
The company brings together the unmatched experience and expertise of three of India's most reputed
business conglomerates: the Essel Group, the Action Group and the Odeon Builders. Suncity Projects
foresees a spectrum of assignments ranging from complete township to high rise apartment complexes
to giant shopping malls to amusement parks. Each project is a showpiece in its category reflecting the
highest standards of planning and construction comparable with the very finest in the business.
Suncity believes that strength which keeps Suncity ahead of their competitors is its sound promoters
(The Essel Group, The Action Group and The Odeon Builders), their good delivery record and good
customer contacts. Suncity is having a positive view for the future SEZ market in Haryana.
Subhash Chandra‐promoted Essel group's Sun City received approvals to set up three zones. While two
SEZs are coming up in Haryana, one is planned in Neemrana, Rajasthan. Of suncity’s 2 SEZ in Haryana
Region one is Single Product SEZ i.e. IT/ITES with an area of 103.195 Acre in Gurgaon and another one is
a Multi Product with an area of 8093.1 in Ambala.
Suncity's IT SEZ envisaged an investment of Rs. 811 crore and would provide employment to 24,000
people. Besides, the company says that had been given in‐principle nod for a 3,000 hectare multi‐
product SEZ near Ambala that entailed an investment of about Rs. 16,000 crore, but are less focused
towards it because of the difficulties in acquisition of land, as area is very large. Company says it will only
be going for the Ambala SEZ if and only if Government helps them in land acquisition otherwise there In‐
principle approval will expire by next year.
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Single Product SEZ “Jhund Sarai, Gurgaon”
A IT/ITES 103.195 Acre SEZ going to be developed in Gurgaon, Haryana with principal and formal
approval been taken, full 100% land has been acquired till date and waiting for its Notification.
Suncity opted to have an IT SEZ in Gurgaon because Gurgaon has become an IT hub, so they thought it
will help them to attract clients for their SEZ.
Suncity basically have no interest in SEZ’s. They are going in SEZ just because of the benefits which
developers would be getting for developing an SEZ.
For this SEZ Suncity believe they won’t be facing any competition. Suncity thinks that as Gurgaon is IT
hub so demand will be more and supply will be less i.e. No Competition.
Suncity at present have no client for their SEZ. They have not even started with any strategy to attract
Clients. For future they are planning to opt for advertisement to persuade clients for their SEZ.
Advertising would be mainly through media channels.
Suncity is expecting notification for their SEZ within a month. After being notified they will complete
master plan. Once it get approval for their Master Plan will go construction part. They estimate that it
would take 2‐3 years to complete with fully functional SEZ.
Multi Product “Ambala Haryana”
A Multi Product 8093.1 Acre SEZ going to be developed in Ambala, Haryana with In‐principal approval
been taken, no land has been acquired till date and waiting for governments policy to be changed,
which will help them in land acquisition.
They have not planned anything for their SEZ because government policies. They believe acquiring land
is very difficult part in process of developing SEZ. They have not even thought of competition and
competitor.
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Unitech Haryana SEZ Ltd.
The Unitech multi‐product SEZ in District Sonepat is being set up near Kundli over an area of about
10000 acres. The cost of developing infrastructure in this SEZ would come to around Rs.10, 000 crore,
which is likely to be funded through promoters’ equity and term finance. 35 percent of the total area in
this SEZ will be utilised for industrial purpose and the remaining for residential, commercial and
institutional utilities. The project, to be implemented in phased manner, has an employment potential of
more than 1.25 lakh persons directly.
In the SEZ, there is a provision for 10 percent sweat equity for HSIIDC. The project would be set up by
special purpose vehicles (SPVs) to be incorporated by HSIIDC and the JV partner companies. As per the
agreements, HSIIDC will facilitate with the State Govt. to notify the project site as ‘SEZ Zone’ under the
provisions of the Haryana SEZ act 2005 which restricts the land use conversion to any other use at the
project site other than the SEZ. The SPVs shall procure the entire land comprising the project site at their
cost. However, in case the developing agency is unable to acquire the land for any of the phases, the
state govt. may acquire the same on behalf of the SPV in accordance with the land acquisition policy of
the State which provides that not more than 25 percent land required for the project would be acquired
by the govt.
The company considers DLF Limited and Reliance Industries Ltd. as its major competitors. The well
established brand name, its strong clientele, and timely delivery are the strengths of the company. The
clientele for the SEZ has been almost established. For the next one year Unitech Haryana SEZ Ltd. does
not have any definite plans as the government policies are changing.
Unitech Group is coming up with a number of SEZs with different SPVs. One such kind of SPV is Pioneer
Urban Land and Infrastructure Ltd. This SEZ is located at Village Ghata, Gurgaon, near NH‐8. It is an
IT/ITES SEZ having the total land area of 40.48 hectares
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Uppal Developers Pvt. Ltd
Since its inception in 1979, the Group with over 500 projects has emerged as one of the leading real
estate developers in the country. They are today altering the landscape of Delhi and NCR by building
corporate complexes, commercial complexes and shopping‐cum‐office complexes. All of these bear the
stamp of Uppal’s belief in Quality and Perfection. Each of these has been built on the basic principles of
hard work, an unflinching commitment to Quality and the Quest to achieve more, and of course, an
obsession with timely completion & delivery.
The Uppal group has got a gazetted notification from the central government that allows it to begin
construction work on its 266‐acre special economic zone (SEZ) situated in Gurgaon. They are the first
developer in the country to have got a gazetted notification for developing a multi‐services SEZ, and
would fund the project cost both by internal accruals and debt and the final equity structure would be
finalised soon. Uppal Developers Pvt. Ltd. is an SPV (Special Purpose Vehicle) of Uppal Housing Ltd.
Uppal's SEZ is located at Villages Rathiwas, Bhodakalan, Bhudka, Distt. Gurgaon, Haryana; on Main
National Highway‐8 approximately 10 Kms towards Jaipur from IMT, Manesar, Gurgaon. The strategic
placing of SEZ gives it a lot of advantage. The land was acquired when the SEZ policy was not clear. Since
IMT Manesar is very close by, therefore for the industrial area will be very prove to be very beneficial for
a multi‐services SEZ.
It is a multi‐services SEZ that will host knowledge industries like IT‐ITeS, biotech, robotics, nanotech and
other R&D‐focused operations. It will also offer warehousing facilities and incubation service (a ready‐
to‐move‐in facility from which a newly‐arrived MNC can operate while its permanent office is being
readied).
The group will invest an estimated Rs 6,500 crore on developing approximately 22 million sq ft of built‐
up space here. They are in talks with foreign developers and real estate venture funds for equity
participation in this project. The detailed master plan for this project is in advanced stage and by July
next year the construction work will begin. It will take around 8‐10 years to complete the construction.
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In addition, it is looking at developing a second, 62‐acre SEZ whose site is 3.5 km before Manesar. The
group already owns the land for this project. The notification is awaited. This single‐product SEZ will
focus on the IT‐ITES sector.
The company considers that its robust infrastructure (including arterial roads connecting each zone to
the national highway and expressway), direct road connectivity to the nearest railway track off the
Delhi‐Rewari rail line, efficient transportation facilities within the SEZ and to and from Gurgaon city area
Environment friendly zone, own land bank, timely payments, effective marketing strategy are its
strength.
The well established brand image of the company facilitates it to attract the clients. They are having a tie
up with the U.S. based MNC, TCG group.
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Vipul Limited
Vipul Ltd, an 11‐year‐old real estate developer, has in the past developed such buildings in Gurgaon as
Global Business Park and Millennium Plaza (in partnership with Unitech). Thereafter, the company has
executed four commercial and four residential projects. Vipul group says that they are committed to
deliver the special needs of their customers, with future in mind. And today they have expanded beyond
the real estate business. The company’s commercial portfolio boasts of a number of prestigious
complexes that house corporate like Gillette, Electrolux, Convergys, GTA and Genesis PR. In their world
class commercial properties are Vipul Square, Global Business Park, Millennium plaza and statesman
House, etc. Vipul Groups consist of Vipul Real Estates, Vipul Facilities management and Vipul Laing O
‘Rourke.
Vipul is coming up with a 150 Acre IT/ITES SEZ at Fazilpur & Behrampur Villages, Gurgaon Haryana.
Landmark Holdings of the Dalmia Group, along with its international affiliate Banyan Real Estate, has
agreed to invest 16.5 per cent and take a stake in Vipul's Rs 1,200 crore proposed Special Economic Zone
(SEZ) in Gurgaon.
The project has received an in‐principle and formal approval from the Ministry of Commerce. Now they
are waiting for it to get notified as they have full 100% land which is required for the development of the
SEZ. The total investment in the project is likely to be in excess of Rs 1200 crore. The company, whose
tenants include leading international IT firms such as Dell and has roped in international financial
partners to give it the long term capital and financial muscle for faster and better execution of the
project,.
Vipul is developing this IT/ITES SEZ in Gurgaon because of the most common reason of Gurgaon has
become an IT hub these days. They were also having land in stock which they would utilized for either
residential or commercial but due to the fact of Tax benefits and other benefits to developers company
is looking forward to develop an SEZ there. Vipul is also having tie up with Varcovia Bank for investment
in the project.
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Vipul finds DLF Limited to be its major competitor in this sector. Providing quality products and products
on reasonable prices are few strength of Vipul’s, which they feel keeps them ahead of their competitors.
Vipul say they won’t have to make much of efforts for attracting clients for their SEZ, because according
to them marketing demand push is low in Gurgaon as compared to any other place. Still they would
prefer Media channel promotion for their SEZ.
Vipul is also not very much sure for their SEZ as not yet decided whether to go for SEZ or some other
project. Vipul also say they are here to do business and will always prefer to go for best opportunity with
whom they could make good amount of profit. But, they also mentioned might be they can come up
with something different in this sector.
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Conclusion
After Conducting the entire survey and analyzing the data collected following conclusions were made:
Hypothesis H1 is true.
o H1: There is difference among existing SEZs in Haryana.
Emaar is coming for largest number of SEZs in Haryana i.e. 10.
IT/ITES is the most common single product SEZ in Haryana. This is because of STPI norm which is
providing additional benefits and incentives specifically to IT/ITES companies. It will expire by
2009. This will attract IT companies to occupy space in SEZs.
Maximum number of Single product SEZs has acquired their land.
Kundli‐Manesar‐Palwal Highway touches most of the Multi‐Product SEZs in Haryana, which is
advantageous due to its connectivity with the SEZs.
Almost all of the Multi‐Products SEZs are at the starting stage of Land Acquisition (10‐25% been
acquired).
Most of the companies are waiting for the government policies to stabilize.
Every company believes that there is a positive future for the SEZ market in Haryana.
Many companies believe that won’t be facing any competition. According to their perception
supply would be dominating demand.
Raheja Developer’s are coming up with a unique concept for their SEZ. The farmers from whom
the land will be purchased will eventually become their partners and will share the profit.
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Parsvnath has strategically placed their SEZs, on basis of locations specialty for a specific
product. For example, IT/ITES at Gurgaon, Food Processing at Kundli, Leather at Agra, Handicraft
at Moradabad, Gems & Jewellery at Jaipur etc.
Bibliography
We referred to various News Papers, News Articles and websites.
Websites:‐
• www.sezindia.nic.in
• www.indianindustry.com
• www.indianraj.com
• www.meaindia.nic.in
• www.aqod.com
• www.businessworld.in
• En.wikipedia.org
• www.financialexpress.com
• www.projectsmonitor.com
• www.expressindia.com
• Rediff news & many other NEWS Sites
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Annexure‐I
QUESTIONNAIRE
Analyzing SEZ’s scenario in Haryana
Name of Developer:
______________________________________________________________________________
Name of SEZ:
______________________________________________________________________________
1. Type of SEZ:
a. Single product _________________(Specify)
b. Multi Product
2. Why this Product?
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
3. Area in acres:
______________________________________
4. Which area of Haryana is the SEZ being developed
a. Gurgaon
b. Sonepat
c. Panipat
d. Ambala
e. Palwal
f. Faridabad
g. Jhajjar
h. Any Other (Please Specify)________________________
5. Why this location?
__________________________________________________________________
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__________________________________________________________________
__________________________________________________________________
6. Has the principal approval been taken from the Central Government?
a. Yes
b. No
7. If yes, how much land has been acquired till date?
______________________________________(Approx.) in percentage
8. What in your view would be the future of the SEZ market in Haryana?
a. Positive
b. Negative
9. Whom do you find to be your major competitor?
a. Uppal Developer Pvt. Ltd.
b. DLF Limited
c. Ansal Properties and Infrastructure Ltd
d. Suncity Haryana SEZ Developer Pvt. Ltd.
e. D.S. Constructions Ltd.
f. Raheja Haryana SEZ Developers Pvt. Ltd.
g. Emaar MGF Land Pvt. Ltd.
h. Reliance Industries Ltd.
i. Unitech Haryana SEZ Ltd.
j. Any other (Please Specify)_____________________________________________
10. According to you what is your strength which makes you ahead of your competitors?
______________________________________________________________________________
______________________________________________________________________________
11. What are your plans for the Non Processing Zone?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
12. What would be your Strategy to persuade/attract clients to your SEZ once it is completed?
______________________________________________________________________________
______________________________________________________________________________
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______________________________________________________________________________
______________________________________________________________________________
13. At present do you have some clients?
a. Yes
b. No
14. What would be your business model for the next one year?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
15. Any plans for power management and water supply?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Name of Head: __________________________________
Contact info: __________________________________
__________________________________
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Annexure‐II
In‐principle Approval
75
Formal Approval
76
Notifications
77
Annexure‐III
FAQ: Special Economic Zone (SEZ)
Who can set up SEZs?
Any private/public/joint sector or State Government or its agencies can set up Special Economic Zone
(SEZ).
Can Foreign Companies set up SEZs ?
Yes
How can one apply for setting up of SEZs ?
15 copies of application, indicating name and address of the applicant, status of the promoter along
with a project report covering the following particulars may be submitted to the Chief Secretary of the
State:
• Location of the proposed Zone with details of existing infrastructure and that proposed to be
established;
• Its area, distance from the nearest sea port / airport / rail / road head etc.
• Financial details, including investment proposed, mode of financing and viability of the project.
• Details of foreign equity and repatriation of dividends etc., if any
• Whether the Zone will allow only certain specific industries or will be a multi‐product Zone.
The State Government shall, forward it along with their commitment to the following to the Department
of Commerce, Government of India:
• That area incorporated in the proposed Special Economic Zone is free from environmental
restrictions;
• That water, electricity and other services would be provided as required;
• That the units would be given full exemption in electricity duty and tax on sale of electricity for
self generated and purchased power;
• To allow generation, transmission and distribution of power within SEZ;
• To exempt from State sales tax, octroi, mandi tax, turnover tax and any other duty/cess or levies
on the supply of goods from Domestic Tariff Area to SEZ units;
• That for units inside the Zone, the powers under the Industrial Disputes Act and other related
labour Acts would be delegated to the Development Commissioner and that the units will be
declared as a Public Utility Service under Industrial Disputes Act.
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• That single point clearances system and minimum inspections requirement under State
Laws/Rules would be provided.
The proposal incorporating the commitments of the State Government will be considered by an Inter‐
Ministerial Committee in the Department of Commerce. On acceptance of the proposal, a letter of
permission will be issued to the applicant.
Are there any terms & conditions for setting up of SEZ ?
Only units approved under SEZ scheme would be permitted to be located in SEZ.
The SEZ units shall abide by local laws, rules, regulations or bye‐laws in regard to area planning,
sewerage disposal, pollution control and the like. They shall also comply with industrial and labour laws
as may be locally applicable.
Such SEZ shall make security arrangements to fulfill all the requirements of the laws, rules and
procedures applicable to such SEZ.
The SEZ should have a minimum area of 1000 hectares and at least 25 % of the area is to be earmarked
for developing industrial area for setting up of units.
Minimum area of 1000 hectares will not be applicable to product specific and port/airport based SEZs.
Wherever the SEZs are landlocked, an Inland Container Depot (ICD) will be an integral part of SEZs.
Detailed guidelines on setting up of SEZ in the Private/Joint/State Sector is given in Appendix 14‐II.N of
Handbook of Procedures Volume I.
What is role of State Governments?
State Governments will have a very important role to play in the establishment of SEZ. Representative of
the State Government, who is a member of the Inter‐Ministerial Committee on private SEZ, is consulted
while considering the proposal. Before recommending any proposals to the Ministry of Commerce &
Industry (Department of Commerce), the States must satisfy themselves that they are in a position to
supply basic inputs like water, electricity, etc.
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What are the facilities Incentive/ Facilities to SEZ Developer?
100% FDI allowed for:
(a) townships with residential, educational and recreational facilities on a case to case basis,
(b) franchise for basic telephone service in SEZ.
• Income Tax benefit under (80 IA) to developers for any block of 10 years in 15 years.
• Duty free import/domestic procurement of goods for development, operation and maintenance
of SEZs
• Exemption from Service Tax /CST.
• Income of infrastructure capital fund/co. from investment in SEZ exempt from Income Tax
• Investment made by individuals etc in a SEZ co also eligible for exemption u/s 88 of IT Act
• Developer permitted to transfer infrastructure facility for operation and maintenance.
• Generation, transmission and distribution of power in SEZs allowed
• Full freedom in allocation of space and built up area to approved SEZ units on commercial basis.
• Authorised to provide and maintain service like water, electricity, security, restaurants and
recreation centres on commercial lines.
How to set up a unit in SEZ?
For setting up a manufacturing, trading or service units in SEZ, 3 copies of project proposal in the format
prescribed at Appendix 14‐IA of the Handbook of Procedures, Vol.1 to be submitted to the Development
Commissioner of the SEZ.
What is the approval mechanism for the units?
All approvals to be given by the Unit Approval Committee headed by the Development Commissioner.
Clearance from the Department of Policy and Promotion/Board of Approvals, wherever required will be
obtained by the Development Commissioner, before the Letter of Intent is issued.
What is the obligation of the Unit under the Scheme?
SEZ units have to achieve positive net foreign exchange earning as per the formula given in paragraph
Appendix 14‐II (para 12.1) of Handbook of Procedures, Vol.1. For this purpose, a Legal Undertaking is
required to be executed by the unit with the Development Commissioner.
The units have to provide periodic reports to the Development Commissioner and Zone Customs as
provided in Appendix 14‐I F of the Handbook of Procedures, Vol.1.
The units are also to execute a bond with the Zone Customs for their operation in the SEZ.
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Any company set up with FDI has to be incorporated under the Indian Companies Act with the Registrar
of Companies for undertaking Indian operations.
What are the incentive/facilities available for SEZ units?
Following incentive/ facilities to SEZ enterprises:
Customs and Excise:
SEZ units may import or procure from the domestic sources, duty free, all their requirements of capital
goods, raw materials, consumables, spares, packing materials, office equipment, DG sets etc. for
implementation of their project in the Zone without any licence or specific approval.
Duty free import/domestic procurement of goods for setting up of SEZ units.
Goods imported/procured locally duty free could be utilised over the approval period of 5 years.
Domestic sales by SEZ units will now be exempt from SAD.
Domestic sale of finished products, by‐products on payment of applicable Custom duty.
Domestic sale rejects and waste and scrap on payment of applicable Custom duty on the transaction
value.
Income tax:
Physical export benefit
100% IT exemption (10A) for first 5 years and 50% for 2 years thereafter.
Reinvestment allowance to the extend of 50% of ploughed back profits
Carry forward of losses
Foreign Direct Investment:
100% foreign direct investment is under the automatic route is allowed in manufacturing sector in SEZ
units except arms and ammunition, explosive, atomic substance, narcotics and hazardous chemicals,
distillation and brewing of alcoholic drinks and cigarettes , cigars and manufactured tobacco substitutes.
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No cap on foreign investments for SSI reserved items.
Banking/Insurance/External Commercial Borrowings:
Setting up Off‐shore Banking Units allowed in SEZs.
OBU's allowed 100% Income Tax exemption on profit for 3 years and 50 % for next two years.
External commercial borrowings by units up to $ 500 million a year allowed without any maturity
restrictions.
Freedom to bring in export proceeds without any time limit.
Flexibility to keep 100% of export proceeds in EEFC account. Freedom to make overseas investment
from it.
Commodity hedging permitted.
Exemption from interest rate surcharge on import finance.
SEZ units allowed to 'write‐off' unrealized export bills.
Central Sales Tax Act:
Exemption to sales made from Domestic Tariff Area to SEZ units.
Income Tax Act:
Service Tax:
Exemption from Service Tax to SEZ units
Environment:
SEZs permitted to have non‐polluting industries in IT and facilities like golf courses, desalination plants,
hotels and non‐polluting service industries in the Coastal Regulation Zone area
Exemption from public hearing under Environment Impact Assessment Notification
Companies Act:
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Enhanced limit of Rs. 2.4 Crores per annum allowed for managerial remuneration
Agreement to opening of Regional office of Registrar of Companies in SEZs.
Exemption from requirement of domicile in India for 12 months prior to appointment as Director.
Drugs and Cosmetics:
Exemption from port restriction under Drugs & Cosmetics Rules.
Sub‐Contracting/Contract Farming:
SEZ units may sub‐contract part of production or production process through units in the Domestic Tariff
Area or through other EOU/SEZ units
SEZ units may also sub‐contract part of their production process abroad.
Agriculture/Horticulture processing SEZ units allowed providing inputs and equipments to contract
farmers in DTA to promote production of goods as per the requirement of importing countries.
Whether SEZs have been exempted from Labour laws?
Normal Labour Laws are applicable to SEZs, which are enforced by the respective state Governments.
The state Government has been requested to simplify the procedures/returns and for introduction of a
single window clearance mechanism by delegating appropriate powers to Development Commissioners
of SEZs.
What are the facilities for Domestic suppliers to Special Economic Zone
Supplies from Domestic Tariff Area (DTA) to SEZ to be treated as physical export. DTA supplier would be
entitled to:
• Drawback/DEPB
• CST Exemption
• Exemption from State Levies
• Discharge of EP if any on the suppliers
• Income Tax benefits as applicable to physical export under section 80 HHC of the Income Tax
Act.
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Who monitor the functioning of the units in SEZ?
Performance of the SEZ units monitored by a Unit Approval Committee consisting of Development
Commissioner, Custom and representative of State Govt. on annual basis.
Are SEZ's controlled by Government?
In all SEZ’s, the statutory functions are controlled by the Government. Government also controls the
operation and maintenance function in the 7 Central Government controlled SEZs. In rest of the
operation and maintenance are privatised.
What are the special features if we come to the zone?
The units would be entitled for a package of Incentives and a simplified operating environment.
What about the Licenses for Imports?
No License is required for imports, including second hand machineries.
If one buy goods from DTA should they require paying State Sales Tax and Excise?
No. State has exempted the sales from DTA to SEZ from local levies and taxes.
What is the practical role of Development Commissioner?
Development Commissioner is the nodal officer for SEZs and help in resolution of problem, if any, faced
by the units/developer.
Routine examination of goods by customs in the EOU is common. Will the same practice continue at
the SEZ?
Customs examination is to the bear minimum. SEZ units function on self certification basis.
What are the provisions relating to External Commercial Borrowing (ECB) in SEZ?
External commercial borrowings by units up to $ 500 million a year allowed without any maturity
restrictions For details please see guidelines issued by RBI (F.No. 4(2)/2002‐ECB, dated 15.9.2002).
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Will it be possible to supply to other units in SEZ?
Yes. Inter Unit Sales are permitted as per the Policy. Buyer procuring from another unit pays in Foreign
Exchange.
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Annexure‐IV
Glossary
Applicant ‐The person on whose behalf the application is made and shall, wherever the context so
requires, include the person signing the application.
BOA ‐The Board of Approval as notified by the Department of Commerce
Capital Goods ‐Any plant, machinery, equipment or accessories required for manufacture or production,
either directly or indirectly, of goods or for rendering services, including those required for replacement,
modernisation, technological upgradation or expansion. Capital goods also include packaging machinery
and equipment, refractories for initial lining, refrigeration equipment, power generating sets, machine
tools, catalysts for initial charge, equipment and instruments for testing, research and development,
quality and pollution control. Capital goods may be for use in manufacturing, mining, agriculture,
aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture
as well as for use in the services sector.
Competent Authority ‐An authority competent to exercise any power or to discharge any duty or
function under the Act or the Rules and Orders made thereunder or under this Policy.
Component ‐One of the parts of a sub‐assembly or assembly of which a manufactured product is made
up and into which it may be resolved. A component includes an accessory or attachment to the
component.
Consumables ‐any item, which participates in or is required for a manufacturing process, but does not
necessarily, form part of the end‐product. Items, which are substantially or totally consumed during a
manufacturing process, will be deemed to be consumables.
Consumer Goods‐Any consumption goods, which can directly satisfy human needs without further
processing and includes consumer durables and accessories thereof.
Counter Trade ‐Any arrangement under which exports/imports from/to India are balanced either by
direct imports/exports from the importing/exporting country or through a third country under a Trade
Agreement or otherwise. Exports/Imports under Counter Trade may be carried out through Escrow
Account, Buy Back arrangements, Barter trade or any similar arrangement. The balancing of exports and
imports could wholly or partly be in cash, goods and/or services.
Developer ‐A person or body of persons, company, firm and such other private or government
undertaking, who develops, builds, designs , organises, promotes, finances, operates, maintain or
manages a part or whole of the infrastructure and other facilities in the Special Economic Zones as
approved by the central Government.
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Development Commissioner ‐The Development Commissioner of the Special Economic Zone.
DFRC ‐ Duty Free Replenishment Certificate.
Domestic Tariff Area ‐ Area within India which is outside the Special Economic Zones.
Drawback ‐Relation to any goods manufactured in India and exported, means the rebate of duty
chargeable on any imported material or excisable material used in the manufacture of such goods in
India. The goods include imported spares, if supplied with capital goods manufactured in India.
EHTP ‐Electronic Hardware Technology Park.
EOU ‐ Export Oriented Unit.
Excisable goods ‐ Any goods produced or manufactured in India and subject to a duty of excise under
the Central Excise and Salt Act 1944 (1 of 1944).
Exporter ‐ A person who exports or intends to export and holds an Importer‐Exporter Code number
unless otherwise specifically exempted.
Export Obligation ‐ The obligation to export the product or products covered by the licence or
permission in terms of quantity, value or both, as may be prescribed or specified by the licensing or
competent authority.
Handbook (Vol.1) ‐ The Handbook of Procedures (Vol.1) and "Handbook (Vol.2)" means Handbook of
Procedures (Vol.2) published under the provisions of the paragraph 2.4 of the Policy.
Importer ‐ A person who imports or intends to import and holds an Importer‐Exporter Code number
unless otherwise specifically exempted.
Infrastructure facilities ‐ Industrial, commercial and social infrastructure or any other facility for the
development of the Special Economic Zone as notified.
ITC (HS) ‐ ITC (HS) Classifications of Export and Import Items Book.
Jobbing‐ Processing or working upon of raw materials or semi‐finished goods supplied to the job worker
so as to complete a part or whole of the process resulting in the manufacture or finishing of an article or
any operation which is essential for the aforesaid process.
Licensing Authority ‐ The authority competent to grant a licence under the Act/Order.
Licensing Year ‐ The period beginning on the 1st April of a year and ending on the 31st March of the
following year.
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Manufacture ‐ To make, produce, fabricate, assemble, process or bring into existence, by hand or by
machine, a new product having a distinctive name, character or use and shall include processes such as
refrigeration, re‐packing, polishing, labeling. Re‐conditioning repair, remaking, refurbishing, testing
calibration, re‐engineering. Manufacture, for the purpose of this Policy, shall also include agriculture,
aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture, viticulture
and mining.
Manufacturer Exporter ‐ A person who exports goods manufactured by him or intends to export such
goods.
MAI‐ Market Access Initiative
Merchant Exporter ‐ A person engaged in trading activity and exporting or intending to export goods.
NFEP ‐ Net Foreign Exchange Earning as a percentage of exports.
Notification ‐ A notification published in the Official Gazette.
Order ‐ An Order made by the Central Government under the Act.
Part ‐ An element of a sub‐assembly or assembly not normally useful by itself and not amenable to
further disassembly for maintenance purposes. A part may be a component or an accessory.
Person ‐ An individual, firm, society, company, corporation or any other legal person.
Policy ‐ The Export and Import Policy, 2002‐07 as amended from time to time.
Prescribed ‐ Prescribed under the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of
1992) or the Rules or Orders made thereunder or under this Policy.
Public Notice ‐ A notice published under the provisions of paragraph 2.4 of the Policy.
Raw material –
i. basic materials which are needed for the manufacture of goods, but which
are still in a raw, natural, unrefined or unmanufactured state; and
ii. For a manufacturer, any materials or goods which are required for his
manufacturing process, whether they have actually been previously
manufactured or are processed or are still in a raw or natural state.
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Rules ‐ Rules made by the Central Government under Section 19 of the Act.
Services ‐ All the tradable services covered under General Agreement on Trade in Services and earning
free foreign exchange.
Service Provider ‐ A person providing:
(i) Supply of a ‘service’ from India to any other country;
(ii) Supply of a ‘service’ from India to the service consumer of any other country in India; and
(iii) Supply of a ‘service’ from India through commercial or physical presence in the territory of any other
country.
(iv) Supply of a ‘service’ in India relating to exports paid in free foreign exchange.
SEZ ‐ Special Economic Zone notified by the Ministry of Commerce & Industry, Department of
Commerce.
Ships ‐ All types of vessels used for sea borne trade or coastal trade and shall include second hand
vessels.
Spares ‐ A part or a sub‐assembly or assembly for substitution, that is ready to replace an identical or
similar part or sub‐assembly or assembly. Spares include a component or an accessory.Specified‐
Specified by or under the provisions of this Policy.
Status holder ‐ An exporter recognized as "Export House/Trading House by DGFT/ Development
Commissioner or Star Trading House/ Super Star Trading House" by the Director General of Foreign
Trade.
STP‐ Software Technology Park
Third‐party exports ‐ Exports made by an exporter or manufacturer on behalf of another exporter(s). In
such cases, shipping bills shall indicate the name of both the exporter/manufacturer and exporter(s).
Unit Approval Committee ‐ The Committee notified for Special Economic Zones to consider proposals
on matters relating to Special Economic Zone unit under its jurisdiction.
Wild Animal‐ Any wild animal as defined in Section 2(36) of the Wildlife (Protection) Act, 1972.
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Zone Development Board‐ The Zone Development Board notified for Special Economic Zones to
consider matters relating to development, operation and maintenance of SEZs.
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