Publication of notification of Nokia India Private Limited for partial denotification of an area of 9.8270 Ha out of 63.6132 Ha of their Multi sector SEZ at Sriperumbudur, Kancheepuram District, Tamil Nadu

## Policy Analysis Report: Denotification of Land from Nokia India Private Limited SEZ **1. Executive Summary:** This report analyzes a notification (S.O. 6047(E)) issued by the Ministry of Commerce and Industry, Department of Commerce, concerning a specific amendment to the regulatory framework governing Special Economic Zones (SEZs) in India. The notification specifically concerns the denotification of 9.8270 hectares of land from the Nokia India Private Limited Special Economic Zone located in Sriperumbudur, Kancheepuram District, Tamil Nadu. This change, based on the recommendation of the Development Commissioner, MEPZ, SEZ and approval of the State Government of Tamil Nadu, reduces the total area of the SEZ to 53.7862 hectares. A key finding is the transition of Salcomp Technologies India Pvt. Ltd., located within the denotified area, to a Domestic Tariff Area (DTA) unit. **2. Introduction:** The purpose of this report is to provide an informative analysis of the Government of India's notification S.O. 6047(E), published on December 23, 2022, regarding the denotification of land from the Nokia India Private Limited Special Economic Zone. This analysis is based solely on the information provided in the given policy text. **3. Policy Overview:** This notification amends the existing framework related to the establishment and operation of Special Economic Zones, specifically under the Special Economic Zones Act, 2005 and the Special Economic Zones Rules, 2006. The core objective of the overarching policy, as inferred from the text, is to facilitate the establishment and operation of sector-specific Special Economic Zones for manufacturing, assembly, and related activities, with the aim of promoting economic growth and development. **4. Background and Rationale:** This specific amendment, the denotification of land from the Nokia India Private Limited SEZ, is likely driven by Nokia India Private Limited's proposal to reduce the geographical area of the SEZ. The rationale behind the proposal may include changes in business strategy, optimization of land usage, or the evolving needs of the company's operations within the SEZ. The approval from the State Government of Tamil Nadu and the recommendation from the Development Commissioner, MEPZ, SEZ suggest that the denotification aligns with broader economic development goals. **5. Key Provisions / Changes:** This notification specifically focuses on the following key changes: * **Specific Change:** The denotification of 9.8270 hectares of land from the Nokia India Private Limited SEZ. * **New Rule/Provision:** The denotification, as per the notification, results in a reduced total area of the SEZ, now standing at 53.7862 hectares. The specific survey numbers and areas within each village that are being denotified are listed in the table provided in the notification. * **Difference/Effect:** This change directly reduces the area under the SEZ regime. More significantly, Salcomp Technologies India Pvt. Ltd., situated within the denotified area, will now operate as a Domestic Tariff Area (DTA) unit. This implies that Salcomp will now be subject to domestic regulations and tariffs for its operations within the denotified land, as opposed to the preferential treatment afforded within the SEZ. **6. Target Audience and Stakeholders:** The primary stakeholders directly affected by this amendment are: * **Nokia India Private Limited:** As the owner of the SEZ, the denotification directly impacts their operational footprint and potentially their strategic planning for the facility. * **Salcomp Technologies India Pvt. Ltd.:** This company experiences a significant shift from operating within an SEZ to operating as a DTA unit, impacting their regulatory obligations, cost structure, and market access. * **The State Government of Tamil Nadu:** Involved in the approval process, they have a stake in ensuring the denotification aligns with the region's economic development objectives. * **Other companies operating within the Remaining SEZ area:** Any potential synergies or dependencies that may have existed may need to be re-evaluated. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** The notification is issued by the Ministry of Commerce and Industry, Department of Commerce. The Development Commissioner, MEPZ, SEZ played a key role in recommending the denotification. * **Procedures:** The denotification process follows the procedures outlined in the Special Economic Zones Act, 2005, and the Special Economic Zones Rules, 2006, specifically referencing section 4 and rule 8. * **Specific to the Changes:** The key implementation aspect regarding the change is the administrative process of physically separating and reclassifying the denotified area from the SEZ. This would involve updating land records, modifying infrastructure, and ensuring proper demarcation. A critical step involves Salcomp Technologies transitioning to operating as a DTA unit, which involves regulatory compliance and potentially changes to their business operations. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this specific amendment are: * **For Nokia India Private Limited:** Streamlined operations by focusing on a smaller, more strategically aligned area of the SEZ. * **For Salcomp Technologies India Pvt. Ltd.:** A shift in their operational environment, requiring adaptation to domestic regulations and market dynamics. This may affect competitiveness and strategic planning. * **Overall:** The change may lead to more efficient land utilization and potentially attract diverse investments in the denotified area, as a DTA unit offers different opportunities than operating within an SEZ. **9. Conclusion:** The notification S.O. 6047(E) represents a specific adjustment to the operational scope of the Nokia India Private Limited SEZ. The denotification of 9.8270 hectares of land and the subsequent transition of Salcomp Technologies India Pvt. Ltd. to a DTA unit are significant changes that will likely have both immediate and long-term impacts on the companies involved and the economic landscape of the region. This highlights the dynamic nature of SEZ policy and the need for businesses to adapt to evolving regulatory environments.

Key Entities Referenced