Publication of Notification of Milestone Buildcon Private Limited for partial denotification of 2.89 Ha of its IT ITES SEZ at Bangalore North Karnataka

## Report on Amendment to Special Economic Zones Policy Regarding Milestone Buildcon Private Limited **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Commerce and Industry, Department of Commerce, regarding an amendment to the Special Economic Zones (SEZ) policy, specifically concerning Ms. Milestone Buildcon Private Limited's SEZ in Karnataka. The core purpose of this amendment is to denotify 2.89 hectares of the existing SEZ, reducing its resultant area to 4.30 hectares. This report examines the rationale, key changes, affected parties, and expected impact of this denotification, as inferred solely from the provided text. **2. Introduction:** This report provides an informative analysis of a government notification pertaining to an amendment of the Special Economic Zones policy. The analysis is based exclusively on the text of the notification provided and aims to elucidate the key aspects of this amendment for the affected industry. **3. Policy Overview:** * **Original Policy:** The notification references the Special Economic Zones Act, 2005 and the Special Economic Zones Rules, 2006, indicating this amendment is built upon this existing framework. * **Core Objective(s):** While the broader SEZ policy aims to promote exports and economic growth, the core objective of *this specific amendment*, as inferred from the text, is to facilitate the denotification of a portion of an existing SEZ for a change in land use. **4. Background and Rationale:** This amendment addresses a request from Ms. Milestone Buildcon Private Limited to denotify 2.89 hectares of their SEZ. The rationale appears to stem from a change in the developer's plans, as they intend to utilize the denotified land for development of a Domestic Tariff Area (DTA) for allotment to Industrial units. The approval from the State Government of Karnataka and the recommendation from the Development Commissioner, Cochin Special Economic Zone, suggest the change aligns with broader regional development goals or addresses specific needs identified by these bodies. **5. Key Provisions / Changes:** This notification amends the existing policy by: * **Changing Area Designation:** Specifically, it denotifies 2.89 hectares within the Milestone Buildcon Private Limited SEZ. * **New Rule/Provision:** The new provision is the formal denotification of the specified area, allowing for its development as a Domestic Tariff Area. * **Difference/Effect:** This change removes the SEZ designation from the 2.89 hectares, subjecting it to different regulations and potentially impacting trade benefits previously associated with the SEZ status. The land can now be used for domestic-oriented industrial activities instead of export-oriented activities. * **Specific Areas Affected**: The amendment identifies these areas as having the following survey numbers: 321P, 37, 39, 40, 41, and 44, in Chokkanahalli Taluka. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by this amendment are: * **Ms. Milestone Buildcon Private Limited:** As the developer, they are directly impacted by the land-use change. * **Industrial Units Intended for Allotment:** The notification indicates the intention to allocate the denotified land to industrial units operating within the Domestic Tariff Area. * **The State Government of Karnataka:** The state government approved the proposal, thus having an interest in the execution of the policy * **Cochin Special Economic Zone:** The zone recommended the proposal for denotification. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Ministry of Commerce and Industry, Department of Commerce, is the primary responsible body, issuing the notification. The Development Commissioner, Cochin Special Economic Zone, and the State Government of Karnataka also play roles in the recommendation and approval processes, respectively. * **Timelines/Procedures:** The notification's date (April 12, 2022) marks the effective date of the amendment. Further procedures regarding the land use change would likely involve local planning authorities and regulatory bodies. * **Implementation Specific to the Amendment:** The primary implementation aspect is the physical and legal demarcation of the 2.89 hectares being denotified, ensuring its transition to DTA status and compliance with applicable regulations. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is: * **Facilitation of Domestic Industrial Development:** The denotification enables Milestone Buildcon Private Limited to develop the land for Domestic Tariff Area activities, potentially attracting new investments and creating employment opportunities within the region. * **Potential Shift in Economic Activity:** The shift from SEZ to DTA may lead to a change in the nature of economic activities on the land, potentially focusing more on domestic consumption rather than export-oriented production. **9. Conclusion:** This report analyzes the amendment to the Special Economic Zones policy concerning the denotification of 2.89 hectares of land within the Milestone Buildcon Private Limited SEZ. The amendment facilitates the development of a Domestic Tariff Area, signifying a shift in land use and potentially impacting regional economic activity. Understanding the specific implications of this change is crucial for Milestone Buildcon Private Limited and other affected stakeholders.

Key Entities Referenced