Publication of Notification of Foxconn India Developer Pvt. Ltd. for full denotification of 10.39 Ha of their IT ITES SEZ at Sriperumbudur, Kancheepuram District, Tamil Nadu

## Report on Amendment to Special Economic Zones Policy Regarding FIH India Developer Pvt. Ltd. **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Commerce and Industry, Department of Commerce, regarding a proposed denotification of a Special Economic Zone (SEZ) for Information Technology and Electronic Hardware in Tamil Nadu. The notification pertains to Ms. FIH India Developer Pvt. Ltd. (formerly Foxconn India Developer Pvt. Ltd.) and their request to denotify the entirety of a 10.39-hectare area previously designated as an SEZ. This report details the background, key changes, stakeholders, and expected impact of this denotification. The key finding is that the Central Government has rescinded the original notification establishing the SEZ, effectively ending its SEZ status. **2. Introduction:** The purpose of this report is to provide an overview and analysis of a government notification concerning the proposed denotification of a Special Economic Zone (SEZ) by Ms. FIH India Developer Pvt. Ltd. This analysis is based solely on the text of the notification provided. **3. Policy Overview:** This notification represents an amendment to the existing Special Economic Zones policy as it pertains to a specific zone previously notified under the Special Economic Zones Act, 2005 and the Special Economic Zones Rules 2006. * **Core Objective:** The core objective of this amendment, as inferred from the text, is to reverse the designation of a specific area as a Special Economic Zone following a proposal by the company originally intending to develop it. **4. Background and Rationale:** This notification is an amendment, specifically a rescission of the original notification. The likely reason for this specific amendment is the decision by Ms. FIH India Developer Pvt. Ltd. to no longer pursue the development of the Special Economic Zone at the previously designated location. The notification explicitly states that the company "has now proposed to denotify the entire area of 10.39 hectares of the above Special Economic Zone." The Government of Tamil Nadu issued a No Objection Certificate to the proposal. **5. Key Provisions / Changes:** This notification introduces a significant change: * **Specific Part of Original Policy Changed:** This notification rescinds Ministry of Commerce and Industry Notification Number S.O. 2101E dated 05th December, 2007, which originally notified an area of 10.39 hectares as a Special Economic Zone. * **New Rule/Provision:** The new provision is the rescission of the original notification. This means that the area is no longer designated as a Special Economic Zone. The rescission is qualified by the phrase "except as respects things done or omitted to be done before such rescission," indicating that any actions taken or not taken under the original SEZ designation prior to this notification remain subject to the relevant regulations. * **Difference/Effect of Change:** The effect of this change is to remove the benefits and obligations associated with SEZ status from the specified area. Ms. FIH India Developer Pvt. Ltd. is no longer obligated to develop the area as an SEZ, and businesses operating within that area no longer have the advantages (or disadvantages) of being within a Special Economic Zone. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by this change include: * **Ms. FIH India Developer Pvt. Ltd.:** The company that proposed the denotification. * **Businesses and potential investors:** Those who may have been considering operating within the SEZ. * **The Government of Tamil Nadu:** Which provided a No Objection Certificate. * **The Development Commissioner, MEPZ Special Economic Zone:** who recommended the proposal. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Ministry of Commerce and Industry, specifically the Department of Commerce and the SEZ Division, is responsible for implementing this change. * **Timelines/Procedures:** The effective date of the denotification is the date of the notification itself (September 22nd, 2022), subject to the caveat regarding actions taken or omitted before the rescission. The Development Commissioner, MEPZ Special Economic Zone played a role in recommending the denotification. * **Specific to the Changes:** The implementation of the rescission involves removing the SEZ designation from the official records and ceasing to administer the area as a Special Economic Zone. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this change is to allow Ms. FIH India Developer Pvt. Ltd. to pursue alternative development plans for the land, or to dispose of it as they see fit, without the constraints and obligations of the SEZ framework. The impact may include: * Altered economic development trajectory for the specific area. * Changes in investment prospects for the region. **9. Conclusion:** This notification represents a reversal of a previous decision to designate a specific area as a Special Economic Zone. The decision was prompted by Ms. FIH India Developer Pvt. Ltd.'s decision not to pursue SEZ development at the location. The impact will be a shift away from the SEZ framework for the designated area, with potential implications for the company, local businesses, and regional economic development. This denotification highlights the dynamic nature of economic policies and the responsiveness of the government to changing business plans.

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