Publication of notification of Kerala State Information Technology Infrastructure Limited for full denotification of 13.445 Ha of their IT/ITES SEZ at Village Purakkad, Taluk Ambalapuzha, District Alappuzha Kerala

## Report on Denotification of Special Economic Zone in Kerala **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Commerce and Industry, Department of Commerce, regarding the denotification of a sector-specific Special Economic Zone (SEZ) for Information Technology and Information Technology Enabled Services in Kerala. The notification rescinds a previous notification that established the SEZ, effectively returning the land to the Revenue Department for use as a community reserve by the Forest Department. The key finding is the complete reversal of the SEZ status for the specified area, indicating a change in economic development strategy for that particular location. **2. Introduction:** This report provides an overview and analysis of the Ministry of Commerce and Industry's notification regarding the denotification of a Special Economic Zone in Kerala. The analysis is based solely on the information provided in the official notification text. **3. Policy Overview:** * **Amendment:** This notification amends a previous policy, specifically the Ministry of Commerce and Industry Notification number S.O. 2947(E) dated 18th November, 2009, which originally notified the area as a Special Economic Zone. * **Core Objective(s):** The original objective was to establish a sector-specific Special Economic Zone for Information Technology and Information Technology Enabled Services. The *current* objective, inferred from the denotification and subsequent land use, is to repurpose the land for environmental conservation through the establishment of a community reserve. **4. Background and Rationale:** The amendment, the denotification, appears to be driven by a change in land use priorities. Ms. Kerala State Information Technology Infrastructure Limited proposed the denotification, and the State Government of Kerala provided a No Objection Certificate. The driving factor outlined in the notification is the intent to return the land to the Revenue Department so that it can be made available to the Forest Department for the establishment of a community reserve. This suggests a shift away from economic development via an IT-focused SEZ towards environmental conservation in this specific location. **5. Key Provisions / Changes:** * **Specific Part of Original Policy Changed:** The notification completely rescinds the earlier notification S.O. 2947(E) dated 18th November, 2009, which designated 13.4415 hectares as a Special Economic Zone. * **New Rule/Provision:** The new rule is that the SEZ designation is removed. The land is no longer considered a Special Economic Zone. * **Difference/Effect of Change:** The effect of this change is that the land is no longer subject to the regulations and incentives associated with SEZ status. Businesses operating or intending to operate within the previously designated area will no longer receive SEZ benefits. The land will be returned to the Revenue Department, facilitating its transfer to the Forest Department for community reserve establishment. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by this change include: * Ms. Kerala State Information Technology Infrastructure Limited: They initiated the denotification process. * Businesses currently operating within the previously designated SEZ area or those considering establishing operations there: They will no longer receive SEZ benefits. * The Kerala State Government (Revenue and Forest Departments): They will be responsible for the transfer and management of the land. * Local communities: They may be impacted by the establishment of the community reserve. * Cochin Special Economic Zone: previously responsible for the SEZ's development and operations **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Ministry of Commerce and Industry (Department of Commerce) issued the notification. The Development Commissioner, Cochin Special Economic Zone, recommended the denotification. The Revenue and Forest Departments of the Kerala State Government will be involved in the land transfer and community reserve establishment. * **Timelines/Procedures:** While the notification does not specify detailed timelines, it implies an immediate effect ("hereby rescinds the above notification") except for actions already taken under the previous SEZ designation. The land transfer to the Revenue Department and subsequent allocation to the Forest Department are implied next steps. * **Implementation Aspects Specifically Relating to the Change:** The rescission takes immediate effect, which means the SEZ no longer operates under the previously established rules from the date of the notification. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this change are: * **Cessation of SEZ activities:** Existing SEZ benefits and regulations will no longer apply. * **Environmental conservation:** The land will be used for establishing a community reserve, promoting biodiversity and environmental protection. * **Shift in economic focus:** The local economy may shift from an IT-centric model to one more focused on environmental conservation and potential ecotourism opportunities associated with the community reserve. **9. Conclusion:** The denotification of the Special Economic Zone in Kerala represents a significant shift in land use policy. The decision reflects a prioritization of environmental conservation over economic development in this specific location. This change will directly affect businesses previously operating or planning to operate within the SEZ, as well as the Kerala State Government. The ultimate impact is expected to be the establishment of a community reserve and a corresponding shift in the region's economic and environmental landscape.

Key Entities Referenced