Govt allows IT SEZs floor-wise denotification, move likely to help reduce vacancy levels
SEZ Rules, 2006.
As per the Special Economic Zones (Fifth amendment) Rules, 2023, the Board of Approval, on request of a developer of an information technology (IT) or IT-enabled services SEZs, may permit demarcation of part of the built-up area of the SEZ as non-processing area.
This non-processing area can be utilised to set up operations of businesses engaged in the IT and ITeS. However, the non-processing area will consist of a complete floor and part of a floor will not be allowed to be demarcated, said a memorandum issued by the Department of Commerce late Wednesday.
Board of Approval will allow demarcation only after repayment, without interest, of tax benefits attributable to the non-processing area, social and commercial infrastructure created to be used by both processing and the proposed demarcated area.
The move is expected to allow developers to lease the non-processing area to IT companies not involved in export activity and reduce the vacancy levels at their office complexes.
“Most of these IT SEZs are at prime locations and these complexes will achieve full leasing once the new changes kick in.
