Developers of new SEZs need security clearance from MHA

Proposals for new SEZs sent to Dept of Commerce must carry development commissioner's note on need for national security clearance

Developers of new special economic zones (SEZs) will have to obtain security clearance from the Ministry of Home Affairs, government said.

"National security clearance is required to be obtained from Ministry of Home Affairs (MHA) as per the guidelines issued by the MHA," the Commerce Ministry said in a communication to development commissioners (DCs) of SEZs.

Before sending the proposals for setting up of new SEZs to the Department of Commerce, DCs need to indicate in the applications whether the proposal would require the national security clearance from the MHA, it said.

"It is also requested that such proposals requiring national security clearance should be accompanies by a self declaration by the company/developer/director (s)," it added.

In case where this clearance is not required, the "same may be confirmed", it said.

"No proposal for setting up of new SEZ will be entertained without this information," it added.

SEZs are export hubs which contribute about 20 per cent to the country's total exports. Units in these zones enjoy certain tax benefits.

The 19-member inter-ministerial Board of Approval (BoA) chaired by the Commerce Secretary deals with all the issues related with these zones.

Exports from special economic zones logged a marginal growth of 0.77 per cent to Rs 4.67 lakh crore in 2015-16. The exports from such 204 zones stood at Rs 4.63 lakh crore in 2014-15.

As per Commerce Ministry's data, as of March 31, 2016, these zones have attracted investments worth Rs 3.76 lakh crore and generated employment for 15.91 lakh people.