Overview

• The government reduces contiguous land requirement for semiconductor and electronics SEZs from 50 hectares to 10 hectares.
• Revised rules specify eligible components including display and camera module subassemblies, battery packs, printed circuit boards, lithium-ion cells, mobile hardware, hearables and wearables.
• The Board of Approval can now permit the use of encumbered land that is mortgaged or leased to central or state agencies for SEZ setup.
• Companies are allowed to include the value of free-of-cost supplied goods in Net Foreign Exchange calculations to enhance benefit eligibility.
• Industry experts say reinstating tax incentives and easing domestic-duty rules on SEZ-to-DTA shipments remain key to fully revitalizing investments.