Special Economic Zones (SEZ) rules has been amended by the centre

Current Context: The Centre has amended the Special Economic Zones (SEZ) rules to boost semiconductor and electronics manufacturing.

• The reforms aim to attract investments, ease regulatory hurdles, and strengthen India's semiconductor ecosystem.
• The amendments were notified by the Department of Commerce on June 3, 2025.

Key Highlights

• Minimum contiguous land requirement reduced from 50 hectares to 10 hectares for SEZs dedicated to semiconductors and electronic components.
• Encumbrance-free land norms relaxed for SEZs mortgaged or leased to central/state governments or their authorized agencies.
• Net Foreign Exchange (NFE) calculations now include the value of goods received and supplied free of cost.
• SEZ units in these sectors can sell goods in the Domestic Tariff Area (DTA) after paying applicable duties.
• Micron Semiconductor Technology India (MSTI) and Hubballi Durable Goods Cluster (Aequs Group) received approval to set up SEZs for semiconductor and electronics component manufacturing.

Question:

Q.1 What is the new minimum contiguous land requirement for SEZs dedicated to semiconductors and electronic components as per the amendment?
a) 100 hectares
b) 50 hectares
c) 25 hectares
d) 10 hectares

Answer: d) The amended rules reduce the minimum contiguous land requirement from 50 hectares to 10 hectares to facilitate the establishment of SEZs for semiconductor and electronic component manufacturing.