The government has notified that developers of new special economic zones (SEZs) will require National security clearance from Ministry of Home Affairs (MHA) before setting up of new SEZs in specified cases.
The Commerce Ministry has said that the development commissioners (DCs) have to indicate whether proposal would require National Security Clearance from MHA before sending the same to the Department for consideration of the Board of Approval (BOA). It also said that in case where this clearance is not needed, the same may be confirmed. It further added that without this information no proposal for setting up of new SEZ will be entertained.
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. In 2015-16, exports from SEZs recorded a marginal growth of 0.77 per cent to Rs 4.67 lakh crore. The exports from such 204 zones stood at Rs 4.63 lakh crore in 2014-15. SEZs are export hubs which contribute about 20% to the country's total exports and units in these zones enjoy certain tax benefits.