Publication of Notification of Kerala State IT Infrastructure Limited for partial denotification IT ITES SEZ at Mulavana Village Kollam District Kerala

## Report on Amendment to Special Economic Zone Policy in Kerala **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Commerce and Industry, Government of India, regarding an amendment to the Special Economic Zones (SEZ) policy concerning a specific SEZ in Kerala. The amendment involves the denotification of 4.4654 hectares of land from an existing Information Technology and Information Technology Enabled Services SEZ in Kollam district. This change aims to allocate a portion of the denotified land to the Fisheries Department for establishing a Research Centre and to construct a working women's hostel for KSITIL SEZ, Kollam. The key finding is that this amendment reduces the total area of the SEZ while repurposing a portion of the land for alternative developmental activities. **2. Introduction:** The purpose of this report is to provide information and analysis regarding a specific amendment to the Special Economic Zones (SEZ) policy, as evidenced by the notification published by the Ministry of Commerce and Industry on April 12, 2022. This report focuses solely on the details and implications derived directly from the provided policy text. **3. Policy Overview:** * **Original Policy:** The policy being amended is the Special Economic Zones Act, 2005, and the Special Economic Zones Rules, 2006, specifically regarding the establishment and operation of a sector-specific Special Economic Zone for Information Technology and Information Technology Enabled Services at Village Mulavana, District Kollam in the State of Kerala. * **Core Objective(s):** While the broader objectives of the original policy are not fully elaborated in this specific text, we can infer it relates to promoting economic growth and development through the establishment and operation of SEZs focused on IT and ITES. The amendment's objective, as inferred from the provided text, is to repurpose a portion of land within the SEZ for other developmental initiatives, including fisheries research and accommodation for working women. **4. Background and Rationale:** This report addresses an amendment to a pre-existing policy. The reason for this specific amendment appears to be a re-evaluation of land use within the Kollam SEZ. The text indicates a proposal from Ms. Kerala State Information Technology Infrastructure Limited (KSITIL) to denotify a portion of the SEZ. This proposal received approval from the State Government of Kerala and recommendation from the Development Commissioner, Cochin Special Economic Zone, suggesting a recognized need or benefit associated with the land's repurposing. Specifically, the denotification is motivated by the desire to allocate land to the Fisheries Department for research and construct a working women's hostel, signaling a potential shift in development priorities or a more efficient allocation of resources. **5. Key Provisions / Changes:** This section details the changes introduced by the provided amendment text. * **Specific Part of Original Policy Changed:** The amendment directly alters the area designated as part of the Special Economic Zone at Village Mulavana, District Kollam. It invokes the second proviso to subsection 1 of section 4 of the Special Economic Zones Act, 2005 and rule 8 of the Special Economic Zones Rules, 2006. * **New Rule/Provision:** The new provision is the denotification of 4.4654 hectares of land from the existing SEZ. This changes the total area of the Special Economic Zone from 18.00 hectares to 13.5346 hectares. The specific survey numbers affected by the denotification are detailed in the provided table: | Sl. No. | Name of Village | Block No. | Survey No. | Total Area in Hectares | | ------- | --------------- | -------- | ---------- | ---------------------- | | 1. | Perayam | 10 | 3921 Part | 2.5048 | | 2. | | | 3938 | 0.2140 | | 3. | Mulavana | 407 | Part | 1.7466 | | | | | **Total** | **4.4654** | * **Difference/Effect of the Change:** The most immediate effect is a reduction in the designated area of the SEZ. Furthermore, 10 acres (approximately 4.0469 hectares) of the denotified land will be transferred to the Department of Revenue, Government of Kerala, for allocation to the Fisheries Department for a Research Centre. The remaining 1.03 acres will be used for the construction of a working women's hostel for KSITIL SEZ, Kollam. This signifies a shift towards supporting broader community needs and potentially diversifying economic activities in the region. **6. Target Audience and Stakeholders:** The primary stakeholders directly affected by this amendment are: * **Ms. Kerala State Information Technology Infrastructure Limited (KSITIL):** As the developer of the SEZ, KSITIL is directly impacted by the reduction in land area and the altered development plan. * **Businesses operating within the SEZ:** Their future expansion plans may be affected by the reduced land availability. * **The Fisheries Department, Government of Kerala:** They are the recipient of a significant portion of the denotified land for establishing a Research Centre. * **Working women in the KSITIL SEZ, Kollam:** They stand to benefit from the construction of a working women's hostel. * **Department of Revenue, Government of Kerala:** They are responsible for transferring the land to the Fisheries Department. * **Cochin Special Economic Zone:** As the office of the Development Commissioner, they have a supervisory role for SEZs located within the state of Kerala. **7. Implementation Aspects (Inferred):** * **Responsible Agencies/Bodies:** The Ministry of Commerce and Industry is the issuing authority for the notification. KSITIL is responsible for implementing the denotification and facilitating the land transfer. The Department of Revenue and the Fisheries Department of the Kerala State Government are also key implementers. * **Timelines/Procedures:** The text does not specify exact timelines. However, it implies that the denotification is effective as of the date of the notification (April 12, 2022). The transfer of land and subsequent construction of the research center and women's hostel will likely follow established state government procedures. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this amendment are: * **Diversification of economic activity:** The allocation of land to the Fisheries Department suggests a broader focus on supporting diverse industries beyond IT/ITES. * **Improved social infrastructure:** The construction of a working women's hostel aims to provide better living conditions and support for female employees within the SEZ. * **Enhanced research capabilities in the fisheries sector:** The establishment of a Research Centre is expected to contribute to advancements in fisheries and aquaculture. * **Optimized land utilization:** The amendment potentially reflects a more efficient allocation of land resources to better address regional development needs. **9. Conclusion:** The amendment to the Special Economic Zone policy in Kollam, Kerala, detailed in this notification, signifies a recalibration of development priorities. By denotifying a portion of the SEZ and allocating it to fisheries research and a working women's hostel, the government aims to promote diversification, enhance social infrastructure, and optimize land utilization. This change demonstrates a willingness to adapt SEZ policies to meet evolving regional needs and promote balanced economic and social development.

Key Entities Referenced