law: Special Economic Zones Act, 2005 
  3. Procedure for making
  
  proposal to establish Special Economic Zone 
  1.     
  
    A
  
  Special Economic Zone may be established under this Act, either jointly or
  
  severally by the Central Government, State Government, or any person for
  
  manufacture of goods or rendering services or for both or as a Free Trade and
  
  Warehousing Zone.
  2.     
  
    Any
  
  person, who intends to set up a Special Economic Zone, may, after identifying
  
  the area, make a proposal to the State Government concerned for the purpose of
  
  setting up the Special Economic Zone.
  3.     
  
    Notwithstanding
  
  anything contained in sub-section (2), any person, who intends to set up a
  
  Special Economic Zone, may, after identifying the area, at his option, make a
  
  proposal directly to the Board for the purpose of setting up the Special
  
  Economic Zone :
  Provided that where such a proposal has been
  
  received directly from a person under this sub-section, the Board may grant
  
  approval and after receipt of such approval, the person concerned shall obtain
  
  the concurrence of the State. Government within the period, as may be
  
  prescribed.
  1.     
  
  
  2.     
  
  
  3.     
  
  
  4.     
  
    In
  
  case a State Government intends to set up a Special Economic Zone, it may after
  
  identifying the area, forward the proposal directly to the Board for the
  
  purpose of setting up the Special Economic Zone :
  Provided that the Central Government may,-
  a.     
  
    after
  
  consulting the State Government concerned;
  b.    
  
    without
  
  referring the proposal for setting up the Special Economic Zone to the Board;
  
  and
  c.     
  
    after
  
  identifying the area, suo motu set up and notify the Special Economic Zone.
  1.     
  
  
  2.     
  
  
  3.     
  
  
  4.     
  
  
  5.     
  
    Every
  
  proposal under sub-sections (2) to (4) shall be made in such form, and, manner,
  
  containing such particulars as may be prescribed.
  6.     
  
    The
  
  State Government may, on receipt of the proposal made under sub-section (2),
  
  forward the same together with its recommendations to the Board within such
  
  period as may be prescribed.
  7.     
  
    Without
  
  prejudice to the provisions contained in sub-section (8), the Board may, after
  
  receipt of the proposal under sub-sections (2) to (4), approve the proposal
  
  subject to such terms and conditions as it may deem fit to impose, or modify or
  
  reject the proposal.
  8.     
  
    The
  
  Central Government may prescribed the following requirements for establishment
  
  of a Special Economic Zone, namely:-
  a.     
  
    the
  
  minimum area of land and other terms and conditions subject to which the Board
  
  shall approve, modify or reject any proposal received by it under subsections
  
  (2) to (4); and
  b.    
  
    the
  
  terms and conditions, subject to which the Developer shall undertake the
  
  authorised operations and his obligations and entitlements;
  Provided that different minimum area of land
  
  and other terms and conditions referred to in clause (a) may be prescribed by
  
  the Central Government for a class or classes of Special Economic Zones.
  1.     
  
  
  2.     
  
  
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  4.     
  
  
  5.     
  
  
  6.     
  
  
  7.     
  
  
  8.     
  
  
  9.     
  
    If
  
  the Board,-
  a.     
  
    approves
  
  without any modification the proposal received under sub-sections (2) to (4),
  
  it shall communicate the same to the Central Government.
  b.    
  
    approves
  
  with modifications the proposal received under sub-sections (2) to (4), it
  
  shall, communicate such modifications to the person or the State Government
  
  concerned and if such modifications have been accepted by such person or State
  
  Government, the Board shall communicate the approval to the Central Government.
  c.     
  
    rejects
  
  the proposal received under sub-sections (2) to (4), it shall record the reasons
  
  therefor and communicate the rejection to the Central Government which shall
  
  intimate to the State Government or the person concerned.
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  5.  
  
  
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  7.  
  
  
  8.  
  
  
  9.  
  
  
  10.  
  
    The
  
  Central Government shall, on receipt of communication under clause (a) or
  
  clause (b) of sub-section (9), grant, within such time as may be prescribed, a
  
  letter of approval on such terms and conditions and obligations and
  
  entitlements as may be approved by the Board, to the Developer, being the
  
  person or the State Government concerned :
  Provided that the Central Government may, on
  
  the basis of approval of the Board, approve more than one Developer in a
  
  Special Economic Zone is cases where one Developer does not have in his
  
  possession the minimum area of contiguous land, as may be prescribed, for
  
  setting up a Special Economic Zone and in such cases, each Developer shall be
  
  considered as a Developer in respect of the land in his possession.
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  10.  
  11.  
  
    Any
  
  person who, or a State Government which, intends to provide any infrastructure
  
  facilities in the identified area referred to in sub-sections (2) to (4), or
  
  undertake any authorised operation may, after entering into an agreement with
  
  the Developer referred to in sub-section (10), make a proposal for the same to
  
  the Board for its approval and the provisions of sub-section (5) and
  
  sub-sections (7) to (10) shall, as far as may be, apply to the said proposal
  
  made by such person or the State Government.
  12.  
  
    Every
  
  person or the State Government referred to in sub-section (11), whose proposal
  
  has been approved by the Board and who, or which, has been granted letter of
  
  approval by the Central Government, shall be considered as a Co-Developer of
  
  the Special Economic Zone.
  13.  
  
    Subject
  
  to the provisions of this section and the letter of approval granted to a
  
  Developer, the Developer may allocate space or built up area or provide
  
  infrastructure services to the approved Units in accordance with the agreement
  
  entered into by him with the entrepreneurs of such Units.