SEZ Rules Relaxed Land Requirement Down From 50 To 10 Hectares Acre To Boost Semiconductor, Electronics Manufacturing

(MENAFN- KNN India) New Delhi, Jun 10 (KNN) The Government of India has modified the Special Economic Zones rules to facilitate semiconductor and electronics components manufacturing, according to an announcement made by the Ministry of Commerce and Industry on Monday.

The amendments are designed to accommodate the specialized requirements of these high-technology sectors and encourage investment in manufacturing activities.

The semiconductor and electronics manufacturing industries are characterised by significant capital requirements, substantial import dependencies, and extended periods before achieving profitability.

The rule modifications aim to address these sector-specific challenges through targeted policy interventions.

Key changes to the SEZ framework include a substantial reduction in the minimum contiguous land area requirement for semiconductor and electronics component manufacturing zones, decreasing from 50 hectares to 10 hectares.

Additionally, the Board of Approval for SEZs has been granted authority to waive the encumbrance-free land condition in cases where properties are mortgaged or leased to central or state governments or their authorised agencies.

The amendments also introduce flexibility in Net Foreign Exchange calculations by permitting the inclusion of goods received and supplied on a complimentary basis.

SEZ units operating in these sectors will be permitted to supply products to the Domestic Tariff Area following payment of applicable duties.

According to the ministry, these policy changes are expected to enhance high-technology manufacturing capabilities, strengthen the semiconductor manufacturing ecosystem, and generate skilled employment opportunities across the country.

The Department of Commerce formally notified these amendments on June 3, 2025.

Following the rule modifications, the Board of Approval for SEZs has approved proposals from Micron Semiconductor Technology India and Hubballi Durable Goods Cluster, operated by Aequs Group.

These approvals represent concrete steps toward establishing semiconductor and electronics component manufacturing facilities under the new framework.

Micron Semiconductor Technology India will develop its SEZ facility in Sanand, Gujarat, spanning 37.64 hectares with a projected investment of Rs 13,000 crore for semiconductor manufacturing.

Simultaneously, Aequs Group will establish its electronics components manufacturing SEZ in Dharwad, Karnataka, covering 11.55 hectares with an estimated investment of Rs 100 crore.

(KNN Bureau)

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