Publication of Notification of SIPCOT for partial denotification of 51.3069 Ha of their Multi Sector SEZ at SIPCOT, Industrial Park, Gangaikondan, Tamil Nadu over an area of 103.238 Ha.

## Report on Amendment to Special Economic Zones Policy in Tamil Nadu **1. Executive Summary:** This report analyzes a notification from the Ministry of Commerce and Industry, Department of Commerce, regarding an amendment to the Special Economic Zones (SEZ) policy in Tamil Nadu. Specifically, the notification concerns the denotification of 51.3069 hectares of land from an existing sector-specific SEZ for Transport Engineering Goods located in Tirunelveli District. The core purpose of the amendment is to reduce the originally notified area of the SEZ, resulting in a resultant notified area of 51.9311 hectares. This denotification is likely intended to allow for alternative industrial use of the land within the Developer's (Ms. State Industries Promotion Corporation of Tamil Nadu Limited) plan for allotment to DTA industrial units. **2. Introduction:** This report provides an overview of the notification S.O. 3868(E), dated August 16, 2022, issued by the Ministry of Commerce and Industry, Department of Commerce, concerning an amendment to the Special Economic Zones (SEZ) policy in Tamil Nadu. The report focuses on the key changes introduced by the notification and their potential implications, based solely on the provided text. **3. Policy Overview:** * **Original Policy:** The amendment relates to the establishment of a sector-specific Special Economic Zone for Transport Engineering Goods (including manufacture of Tyres and Tubes) at State Industries Promotion Corporation of Tamil Nadu Limited Industrial Growth Centre, Gangaikondan Village, Tirunelveli District, in the State of Tamil Nadu. The original notification for an area of 103.238 hectares was made vide Ministry of Commerce and Industry Gazette Notification Number S.O. 1156(E) dated 15th May, 2008. * **Core Objective(s):** Based on the text, the original policy's core objective was to promote and facilitate the establishment of sector-specific SEZs to boost Transport Engineering Goods (including manufacture of Tyres and Tubes) related industries and investment in the Tirunelveli District of Tamil Nadu. The *amendment's* objective is to *reduce* the notified area of an existing SEZ and allow for industrial use by Domestic Tariff Area (DTA) industrial units on the denotified land. **4. Background and Rationale:** The amendment addresses a change in the land requirements for the SEZ, resulting in an area reduction. Ms. State Industries Promotion Corporation of Tamil Nadu Limited proposed the denotification of 51.3069 hectares from the original SEZ. The State Government of Tamil Nadu approved the proposal, and the Development Commissioner, MEPZ Special Economic Zone recommended the denotification. The Developer intends to utilize the denotified land for industrial use, specifically allotting it to DTA industrial units. This suggests the initial area designated for the SEZ was deemed larger than necessary or a change in development strategy now favours allocation to DTA units. **5. Key Provisions / Changes:** This notification details an amendment. Therefore, the analysis focuses on the changes. * **Specific Part of Original Policy Changed:** The notification directly amends the area of the originally notified SEZ, as described in Ministry of Commerce and Industry Gazette Notification Number S.O. 1156(E) dated 15th May, 2008. * **New Rule/Provision:** The Central Government *denotifies* an area of 51.3069 hectares at State Industries Promotion Corporation of Tamil Nadu Limited Industrial Growth Centre, Gangaikondan Village, Tirunelveli District. The resultant notified area is 51.9311 hectares. The specific survey numbers and areas being denotified are: * Survey No. 1724pt: 26.7199 hectares * Survey No. 1851pt: 24.5870 hectares * Total: 51.3069 * **Difference/Effect of the Change:** The amendment reduces the size of the originally planned SEZ, freeing up 51.3069 hectares of land for alternative industrial use. This change allows the Developer (Ms. State Industries Promotion Corporation of Tamil Nadu Limited) to allot this land to DTA industrial units. The area available for SEZ activities is significantly decreased, resulting in a new total area of 51.9311 hectares. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by this amendment are: * **Ms. State Industries Promotion Corporation of Tamil Nadu Limited:** The Developer of the SEZ is directly affected, as they can now utilize the denotified land for other industrial purposes. * **Potential DTA Industrial Units:** Companies operating within the Domestic Tariff Area (DTA) are affected as they are now eligible to be allotted land in the previously SEZ-designated area. * **Businesses currently operating within the remaining SEZ:** Changes to the SEZ area might affect existing SEZ businesses, and should be considered. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** * **Central Government (Ministry of Commerce and Industry, Department of Commerce):** Responsible for issuing the notification and denotifying the area. * **State Government of Tamil Nadu:** Provided approval for the proposed denotification. * **Development Commissioner, MEPZ Special Economic Zone:** Recommended the proposal for denotification. * **Ms. State Industries Promotion Corporation of Tamil Nadu Limited:** The Developer responsible for implementing the changes and allotting the denotified land. * **Timelines/Procedures:** The notification is effective from the date of publication. The procedures for allotting the denotified land to DTA industrial units will likely be governed by the policies and procedures of Ms. State Industries Promotion Corporation of Tamil Nadu Limited. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is to: * Facilitate the industrial use of the denotified land by DTA industrial units. * Potentially diversify the industrial base in the Tirunelveli District. * Optimize land utilization based on revised development plans. * Reduce the scope of the original SEZ for Transport Engineering Goods to a smaller, more focused area. The impact of the amendment could include: * Increased investment from DTA units in the region. * Potential job creation in the DTA industrial sector. * Shift in focus of industrial activity from solely Transport Engineering Goods in the initial SEZ, to new industries from DTA units. **9. Conclusion:** The notification S.O. 3868(E) represents a significant amendment to the Special Economic Zones policy in Tamil Nadu, specifically regarding the SEZ located in Gangaikondan Village, Tirunelveli District. The denotification of 51.3069 hectares of land and its subsequent allocation to DTA industrial units signals a change in development strategy. The amendment allows for broader industrial development in the area, potentially boosting investment and job creation beyond the original scope of the Transport Engineering Goods sector. The reduced size of the remaining SEZ (51.9311 hectares) may signal a shift in focus or a recalibration of the initial project's scope. This amendment is significant for Ms. State Industries Promotion Corporation of Tamil Nadu Limited, potential DTA investors, and the overall industrial landscape of the Tirunelveli District.

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