Report - SEZs Haryana

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Special Economic Zones, Haryana

In Partial Fulfillment of Master of Business Administration (Entrepreneurship & Leadership)

By:

Mayank Singh

AMITY UNIVERSITY

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐UTTAR PRADESH‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

AMITY BUSINESS SCHOOL – AU

Sector‐44, Noida, UP

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Contents Executive Summary 5

Introduction 6

What is SEZ? 7

World’s first SEZ 8

SEZ in India 11

o Approval mechanism and Administrative set up of SEZs 13

o Incentives and Benefits 14

o SEZ policy is special in many ways 15

o SEZ Approval Status 16

o Land requirements for approved SEZs 16

o Benefits derived from SEZs 17

Special Economic Zone of China 18

Objective and Rationale of project 19

Research Methodology 20

Hypothesis 20

Sample Size 20

Questionnaire 20

Action plan for data collection 20

Data analysis 21

o SEZs in Haryana 25

o Single Vs Multi Product 25

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o Distribution of Products 26

o Major Competitors 26

o Company with maximum are to set up SEZ 27

o Maximum No. of SEZ under one company 28

o Percentage of land acquired by the companies 29

Research Findings 30

Ansal IT City and Parks Ltd. 31

Assotech Realty Pvt. Ltd. 33

DLF Limited 35

D. S. Constructions Ltd. 39

Emaar MGF Land Pvt. Ltd. 41

Luxor Cyber City Pvt. Ltd. 45

Orient Craft Infrastructures Ltd. 46

Parsvnath Developers Limited 47

Raheja Haryana SEZ Developers Pvt. Ltd. 52

Reliance Haryana SEZ Pvt. Ltd. 54

Rockman Projects Ltd. 60

Shreeaumji Developers Pvt. Ltd. 61

Suncity Haryana SEZ Developers Pvt. Ltd. 63

Unitech Haryana SEZ Ltd. 65

Uppal Developers Pvt. Ltd. 66

Vipul Ltd. 68

Conclusion 70

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Bibliography 71

Annexure‐I 72

Annexure‐II 75

Annexure‐III 78

Annexure‐IV 86

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Executive Summary

To provide a stable economic environment for the promotion of Export‐import of goods in a quick, efficient and hassle‐free manner, Government of India enacted the SEZ Act, which received the assent of the President of India on June 23, 2005. The SEZ Act and the SEZ Rules, 2006 (“SEZ Rules”) were notified on February 10, 2006. The SEZ Act is expected to give a big thrust to exports and consequently to the foreign direct investment (“FDI”) inflows into India, and is considered to be one of the finest pieces of legislation that may well represent the future of the industrial development strategy in India. The new law is aimed at encouraging public‐private partnership to develop world‐class infrastructure and attract private investment (domestic and foreign), boosting economic growth, exports and employment.

The SEZ Act has encouraged many companies to undertake setting up of various SEZs all over India. The incentives and benefits provided to SEZs have attracted even those companies which are not into developing field. Being new to real estates, they have come up with their SEZs in Joint Venture with well established companies that have experience in the field. For example, Luxor is coming up with its SEZ in Joint Venture with Uppal Developers Pvt. Ltd.; Shreeaumji Developers Pvt. Ltd. is in Joint Venture with Unitech Group, Jai Bharat Maruti and Minda Industries, Reliance Industries Ltd. with Reliance Haryana SEZ Pvt. Ltd. as its Special Purpose Vehicle.

The study consisted of primary and secondary data. At first, secondary data was taken from internet like the list of companies, the size and location of SEZs, contact details etc. Then a survey of the companies was undertaken wherein primary information of the companies was extracted after visiting the companies and personally interviewing the executives. Once the data was collected, then the analysis was done.

The result found was that DLF, Emaar MGF, Reliance are the major competitors, as Reliance coming up with largest SEZ, DLF is coming up with the second Largest SEZ and Emaar with 3 Multi‐Product SEZ in Gurgaon. Also, those many company’s SEZs are touching KMP highway for connectivity, starting from Kundli with Unitech’s SEZ and ending at Palwal with D.S. Construction’s SEZ.

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Introduction

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What is SEZ (Special Economic Zone)? A Special Economic Zone (SEZ) is a region that has economic laws that are more liberal than a country's typical economic laws. Usually the goal is an increase in foreign investment.

Special economic zone is a particular area inside a state which acts as foreign territory for tariff and trade operations. Govt. provides tax exemption (IT, Excise, customs, sales etc.), subsidized water and electricity etc.

Special Economic Zones have been established in several countries, including India, Iran, Jordan, Poland, Kazakhstan, Philippines, Russia, and Ukraine. North Korea has also attempted this to a degree, but failed. Puno, Peru has been slated to become a "Zona Ecomomica". In the United States, SEZ are referred to as "Urban Enterprise Zones".

SEZ can be sector specific or multi product SEZ. It helps in the development of infrastructure of the area around the SEZ, provides employment to people, and makes the exports more viable. All this will help the country's products to become more competitive visa‐a‐versa providing all round development of region. It should be noted that if 100 acres are allotted for SEZ, then only 50% of area is used for setting up plants rest of the area is used to provide housing facilities, malls, multiplexes etc. also known as non‐processing Zone. Also Tax exemption is for specific period say for 10 yrs or so.

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World’s first SEZ The Shannon Concept

Innovative Developments at Shannon that contributed to national development include: Promotion of FDI: Shannon was the first gateway for the entry of export based foreign direct investment into Ireland. The positive experience of investors at Shannon led to additional FDI throughout the national economy. Today Shannon is still the largest single site concentration of foreign investment in Ireland. Promotion of International Financial/ IT Services: Shannon Development led the way in the 1960’s in promoting international financial and IT services. The success of these activities at Shannon was observed by others in Ireland and overseas. The Dublin International Financial Services Centre, a kind of financial services free zone was established in 1987. It has been judged an outstanding success. IDA assisted international IT and financial services projects now employ upwards of 30,000 people. Training Needs and Facilities: There was close co‐operation from the outset between Shannon Development and the new investors. Needs included an industrial training centre to train workers in semi skilled tasks and develop supervisory skills. A new training centre was established within the Free Zone. Later this led to the establishment of a national industrial training authority with Shannon Development’s chief executive as its first chairman. Industrial Parks: The Shannon free zone was Ireland’s first industrial park and the experience was later applied in other population centers throughout the country. Technology Development: To attract high quality investment the need for a strong technologically oriented university, was recognized. The University Of Limerick, Ireland’s first technological university, was established in 1973. Shannon’s chief executive became its first chairman and to forge closer links between the RDA and the university, the university president was appointed to the board of Shannon Development. In 1980 one of the first Innovation Centers in Europe was developed adjacent to the university campus. National Technology Park and the Regional Knowledge Network: In 1984 Shannon Development in partnership with the university established the country’s first technology park on a 120ha site adjoining the campus. This Concept has now been extended to create a knowledge network of five smaller technology parks and centers in peripheral locations throughout the region.

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Other Business Infrastructure: Over the years Shannon Development led the way in Ireland in developing other forms of business infrastructure to cater for the diverse needs of a growing number of Irish entrepreneurs. Initiatives included small industry estates; an enterprise centre network; innovation centers; business incubator units and a specialized food industry centre. Tourism: Shannon Development led the way in the 1960s in developing and marketing heritage based tourism attractions such as medieval castle banquets and folk parks. In order to promote economic activity and spread the benefits of tourism to isolated rural areas, it developed the rent an Irish cottage scheme. Shannon Development continues to develop innovative tourist attractions in areas of the Shannon Region outside the influence of the major industrial centres. In recent years EU structural funds have been used creatively to develop new tourist products such as Kilrush Creek Marina, the Tralee Tourism cluster, Doonbeg Link’s golf course, Limerick Heritage precinct and others. Regional Planning and Development: The airport, free zone, and various tourism initiatives had a major impact on the surrounding Shannon Region. The Irish government in 1968 took the logical step of extending Shannon Development’s mandate to include the wider Shannon Region. Thus Shannon Development became Ireland’s first regional development agency. It produced the country’s first regional industrial development plan in 1969. This acted as a model for similar plans in other Regions. Rural Development: Shannon Development’s regional responsibility led naturally to an interest in the development of rural areas. It used, and continues to use today, its tourism development and marketing expertise to promote rural development. Shannon Impact in other parts of the Globe From the mid 1960’s onwards developments at Shannon attracted the interest of the wider world. Duty Free Shops: The Shannon duty free shop concept has been replicated many times throughout the world. Most of the highly successful Middle East shop and those in Russia and the former Soviet Union benefited from Shannon consultancy advice and management expertise. Free Zones: The Shannon free zone model has been used in many parts of the world. Taiwan (1965), Malaysia (1971), Egypt (1976), Mauritius (1978), and Sri Lanka (1978) were among the first group of successful zones to benefit from Shannon advice and consultancy inputs. In the last 25 years upwards of 50 countries world‐wide have been assisted.

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Special Economic Zones: The Chinese SEZ is the corner stone of the Chinese economic miracle for the last 25 years. The Chinese SEZ concept was developed following a visit to Shannon by a group of Chinese officials in 1976. When they returned to China they related their Shannon experience to Deng Xiao Ping. The discussion that followed led to the establishment of the first Chinese SEZ in 1978.

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SEZ in India Considering the need to enhance foreign investment and promote exports from the country and realizing the need for a platform must be made available to the domestic enterprises and manufacturers to be competitive globally. The Government of India in April 2000 announced the introduction of Special Economic Zones policy in the country, deemed to be foreign territory for the purposes of trade operations, duties and tariffs. As of 2007, more than 500 SEZs have been proposed.

Gujarat coast is Kandla, where the first SEZ in India was set up in 1965 called an export processing zone, or EPZ. Coming seven years after the world's first SEZ at Shannon in Ireland, it was the first of its kind in Asia. But 40 years on, Kandla and the seven other state‐run EPZs‐turned‐SEZs in India have failed to live up to their promise. Experts say the principal reason for this sorry state of affairs is inadequate infrastructure.

With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances, absence of world‐class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000. SEZs in India functioned from 1.11.2000 to 09.02.2006 under the provisions of the Foreign Trade Policy and fiscal incentives were made effective through the provisions of relevant statutes. To instill confidence in investors and signal the Government's commitment to a stable SEZ policy regime and with a view to impart stability to the SEZ regime thereby generating greater economic activity and employment through the establishment of SEZs, a comprehensive draft SEZ Bill prepared after extensive discussions with the stakeholders. A number of meetings were held in various parts of the country both by the Minister for Commerce and Industry as well as senior officials for this purpose. The Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 which received Presidential assent on the 23rd of June, 2005. The draft SEZ Rules were widely discussed and put on the website of the Department of Commerce offering suggestions/comments. Around 800 suggestions were received on the draft rules. After extensive consultations, the SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February, 2006, providing for drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments. The main objectives of the SEZ Act are:

(a) Generation of additional economic activity (b) Promotion of exports of goods and services; (c) Promotion of investment from domestic and foreign sources; (d) Creation of employment opportunities; (e) Development of infrastructure facilities;

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The SEZ Rules provide for different minimum land requirement for different class of SEZs. Every SEZ is divided into a processing area where alone the SEZ units would come up and the non‐processing area where the supporting infrastructure is to be created.

The SEZ Rules provide for:

a) Simplified procedures for development, operation, and maintenance of the Special Economic Zones and for setting up units and conducting business in SEZs;

b) Single window clearance for setting up of an SEZ; c) Single window clearance for setting up a unit in a Special Economic Zone; d) Single Window clearance on matters relating to Central as well as State Governments; e) Simplified compliance procedures and documentation with an emphasis on self certification

Note: FAQs SEZ see the appendix below

Many people in India think that setting up many Special Economic Zones (SEZs) is the best solution for India for attracting foreign investment. India is trying desperately to attract foreign investment so it can create thousands of new jobs. For doing so, India needs to develop infrastructure and SEZ seems to be the best answer in this regard. The supporters of the concept of SEZ argue that since India cannot afford to invest a huge amount of money to develop the infrastructure of the whole India, SEZ is the only viable option. They also argue that SEZs are free of the negative aspects of Indian bureaucracy. They feel that if India wants to match Chinese economic development then there is no alternative to setting up SEZs and attract local and foreign investment.

Not everyone is happy with these arguments. Those who are against it argue that giving tax breaks to SEZs is not a good idea. They are also against acquisition of fertile agricultural land as it will make many farmers landless.

It’s clear that government lacks in long term funds which could be better used for infrastructure development of the country, so instead of being a silent spectator, it’s better to encouraging private investment, which is the novel way to utilize the resources of the country. Tax incentives are the most ulcerative way to attract the private players. Proper policy towards SEZ's with due care being taken for poor farmers will definitely help India to achieve its economic goal.

The following are the disadvantages of an SEZ:

1. If built on agricultural land the farmers will loose their livelihood as they are not skilled laborers it would to tough to relocate them to other jobs.

2. Since the companies that operate under SEZ enjoy a lot of tax holidays it would create a burden on the finance ministry as tax collected would be less.

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3. It could create socio‐economic disparities as the SEZ would accommodate the high and mighty the poor people will be pushed towards poverty and unemployment.

Approval mechanism and Administrative set up of SEZs

(a) Approval mechanism: The developer submits a proposal for establishment of SEZ to the concerned State Government. The State Government has to forward the proposal with its recommendation within 45 days from the date of receipt of such proposal to the Board of Approval. The applicant also has the option to submit the proposal directly to the Board of Approval.

The Board of Approval has been constituted by the Central Government in exercise of the powers conferred under the SEZ Act. All the decisions are taken in the Board of Approval by consensus. The Board of Approval has 19 Members. Its constitution is as follows:

(b) Administrative set up: The functioning of the SEZs is governed by a three tier administrative set up. The Board of Approval is the apex body and is headed by the Secretary, Department of Commerce. The Approval Committee at the Zone level deals with approval of units in the SEZs and other related issues. Each Zone is headed by a Development Commissioner, who is ex‐officio chairperson of the Approval Committee.

Once an SEZ has been approved by the Board of Approval and Central Government has notified the area of the SEZ, units are allowed to be set up in the SEZ. All the proposals for setting up of units in the SEZ are approved at the Zone level by the Approval Committee consisting of Development Commissioner, Customs Authorities and representatives of State Government. All post approval clearances including grant of importer‐exporter code number, change in the name of the company or implementing agency; broad banding diversification, etc. are given at the Zone level by the Development Commissioner. The performance of the SEZ units is periodically monitored by the Approval Committee and units are liable for penal action under the provision of Foreign Trade (Development and Regulation) Act, in case of violation of the conditions of the approval.

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Incentives and Benefits

Besides providing state‐of‐the‐art infrastructure and access to a large well‐trained and skilled work force, the SEZ policy also provides enterprises and developers with a favorable and attractive framework of incentives:

• 100% income tax exemption for a block of five years and an additional 50% tax exemption for two years thereafter

• 100% FDI in the manufacturing sector permitted through automatic route, barring a few sectors.

• External commercial borrowings by SEZ units up to US$500 million in a year without any maturity restrictions through recognized banking channels.

• Facility to retain 100% foreign exchange receipts in Exchange Earners’ Foreign Currency Account.

• 100% FDI permitted to SEZ franchisee in providing basic telephone services in SEZs.

• No cap on foreign investment for small scale sector reserved items.

• Exemption from industrial licensing requirements for items reserved for the SSI sector.

• No import license requirements

• Exemption from customs duties on import of capital goods, raw materials, consumables, spares etc

• Exemption from Central Excise duties on procurement of capital goods, raw materials, consumable spares etc., from the domestic market.

• No routine examinations by Customs for export and import cargo.

• Facility to realize and repatriate export proceeds within 12 months.

• Profits allowed to be repatriated without any dividend‐balancing requirement.

• Job work on behalf of domestic exporters for direct export allowed.

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• Subcontracting both domestic and international is permitted; this facility is available to jewellery units as well.

• Exemption from Central Sales Tax and Service Tax

• Facilities to set up off‐shore banking units in SEZs.

Incentives to Developers

• Exemption from duties on import /procurement of goods for the development, operation and maintenance of SEZ.

• Income tax exemption for a block of 10 years in 15 years.

• Exemption from Service Tax

• FDI to develop townships within SEZs with residential, educational, health care and recreational facilities permitted on a case‐to‐case basis.

The SEZ policy is special in many ways:

• The range of permissible economic activities is vast since it covers trading, reconditioning, labeling/ repacking, etc.

• Under the Union Government’s policy, businesses will operate under a high quality policy and business friendly regulatory environment free from hassles.

• The SEZ will provide high quality, world‐class infrastructure designed to render costs of production, delivery, logistics and transactions competitive on a global basis.

• The size of the SEZ would be large enough to attract private participation in building infrastructure.

• While the SEZ will be insulated from the domestic tariff area in so far as negative influences are concerned, SEZ units will nonetheless get the much sought after access to domestic markets. SEZ provides for unrestricted access to domestic markets (with payment of relevant duties on imports and outputs).

• Units in the SEZ will get 100% tax break/ holiday for first five years and 50% thereafter for the next five years and also for a further period of five years. 100% foreign ownership is automatically cleared in the manufacturing sector.

• ‘Export‐ oriented’ economic activities only are permitted (NFE over a five year must be positive)

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• While development of the SEZ scheme is under the Union Government, States have a key role in organizing the administration of the SEZs. Further, it is envisaged that the private sector could play an important role in building and managing the SEZ facilities.

Although the Special economic Zones offer a plethora of benefits in terms of the tax exemptions and export promotion incentives, there are other requirements that are important.

SEZs need to be treated as complete Islands of self containing world class infrastructure that is fully connected to the rest of the world and provides for all the infrastructural requirements as is provided in any First World Country. And these factors need to be an inherent part of the infrastructure of the SEZ. Leaving this to be a provided by either the State or the Central Government would put the clog in the wheel of the development of a State of the Art Facility.

SEZ Approval Status

Consequent upon the SEZ Rules coming into effect w.e.f. 10th February, 2006, nine meetings of the Board of Approvals have since been held. In recent months, the SEZ rush had dried up with only around 25 applications having being received since April 6. While government has granted final approvals to 339 proposals, other 120‐odd zones have received first‐stage clearance, where land needs to be acquired, and leaving only around 40 proposals pending. There is another set of 225 applications which are expected to be rejected since the state government has not supported the proposals. 126 SEZs have been notified till date.

Land requirements for approved SEZs

The total land requirement for the (approx) 300 formal approvals granted till date is (approx) 40000 hectares out of which about 60 approvals are for State Industrial Development Corporations/State Government Ventures which account for over 17800 hectares. In these cases, the land already available with the State Governments or SIDCs or with private companies has been utilized for setting up SEZ. The land for the 63 notified SEZs where operations have since commenced involved is 8051.56 hectares only.

Out of the total land area of 2973190 sq km in India, total agricultural land is 1534166 sq km (51.6%). It is interesting to note that out of this total land area, the land in possession of the 63 SEZs notified

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amounts to approximately 67 sq km only. The approximately 300 formal approvals will also cover only around 450 sq km.

Benefits derived from SEZs

Benefits derived from SEZs are evident from the investment, employment, exports and infrastructural developments additionally generated. Investment of the order of Rs.100, 000 crores including FDI of US $ 5 ‐ 6 billion is expected by the end of December 2007. 500,000 direct jobs are expected to be created by December 2007. The benefits derived from multiplier effect of the investments and additional economic activity in the SEZs and the employment generated thus will far outweigh the tax exemptions and the losses on account of land acquisition. Stability in fiscal concession is absolutely essential to ensure credibility of Government intensions.

(a) Exports from the functioning SEZs during the last three years are as under:

Year Exports(Rs. crores) Growth Rate of exports

2003‐2004 13,854(US$ 2996 million) 39%

2004‐2005 18,314(US$ 4075 million) 32%

2005‐2006 22840(US$ 5078 million) 24.71%

Projected exports from all SEZs (82) for 2007‐08: Rs. 67300 crores

(b) At present, 1016 units are in operation in the SEZs, providing direct employment to over 1.79 lakh persons; about 40% of whom are women. Private investment by entrepreneurs in the SEZs established prior to the SEZ Act is of the order of over Rs. 4400 crores. In the 63 notified SEZs which have come up after 10th February 06, investment of Rs. 13,435 crores has already been made in less than one year. These SEZs have so far provided direct employment to 18,457 persons.

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Special Economic Zones of China

The word "special" mainly means special economic systems and policies. In the China, the central government gives SEZs special policies and flexible measures, allowing SEZs to utilize a special economic management system.

1. Special tax incentives 2. Greater independence on international trade activities. 3. Economic characteristics are represented as "4 principles":

1. Construction primarily relies on attracting and utilising foreign capital 2. Primary economic firms are sino‐foreign joint ventures and partnerships as well as

wholly foreign‐owned enterprises 3. Products are primarily export‐oriented 4. Economic activities are primarily driven by market

SEZ are listed separately in the national planning (including financial planning) and have province‐level

authority on economic administration. SEZs local congress and government have legislation authority.

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Objectives and rationale of the Project

Analyzing the Scenario of SEZs in Haryana:

There is a very big market of SEZ is emerging. Many companies are coming up with their SEZs in Haryana.

Therefore, we wanted to know what these companies are doing, what is their business model for next couple of years, current scenario of the companies, what type of SEZs are they coming up with, what are the sizes of the SEZs, how many SEZs a company is coming up with, what is the location of SEZs etc.

Thus, the project aims at analyzing the scenario of SEZs coming up in Haryana.

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Research Methodology

Hypothesis:

H0: There is no difference among existing SEZs in Haryana.

H1: There is difference among existing SEZs in Haryana.

Sample Size: 35

Questionnaire: See Annexure‐1 for Questionnaire.

Action Plan for data Collection:

Primary and Secondary data

Primary data: This was conducted through a survey of all the companies coming up with their SEZs by taking personal interview of their executives.

Secondary data: The addresses, size, location, contact number of companies coming up with SEZs was collected from internet.

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Data analysis:

S. No Name of the developer

Location Type of SEZ Area Hectares

Headed by

1 Reliance Industries Ltd.

Jhajjar, Haryana Multi‐product 10,000

2 DLF Limited

1. Ph‐1 Gurgaon

2. Sector 30, DLF City, 3. Gurgaon

4. Sector No. 24 &

25A, 5. DLF Cyber City, DLF 6. City, Gurgaon

7. Ambala, Haryana

8. Gurgaon, Haryana

9. Gurgaon, Haryana

IT/ITES IT/ITES IT/ITES multi‐product multi‐product IT/ITES

12.06 12.14 12.54 1012 8097 10.73

Mr. Yogesh Verma

3 D.S. Constructions

Palwal, Haryana Multi‐product 5000

4 Emaar MGF Land Private Ltd.

1. Shikohpur, Distt. Gurgaon

2. Gurgaon, Haryana

3. Villages Kherki

Daulla and Sihi, 4. District Gurgaon

5. Village Boda Kalan, Distt Gurgaon

6. Jahajpur, Distt Gurgaon

7. Lakhnaula, Distt

IT/ITES

IT/ITES

IT/ITES

Multi‐Product

Multi‐Product

IT/ITES

Multi‐Product

Auto Ancillary

100 28 20 4000 2000 240 1000 100

Mr. Ashish Zindal

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Gurgaon,

8. Machigarh, Bhupani, Distt

9. Faridabad

10. Banskusla, Gurgaon

11. Bans Hariya, Gurgaon

12. Naweda Fatehpur,

Gurgaon

IT/ITES

Gems & Jewellery

120 40

5 M/s. Unitech Haryana SEZ Ltd.

Sonepat‐Kundli, Haryana Multi‐product 4000 Mr. V. K. Chaddha

6 Suncity Haryana SEZ Developer Pvt. Ltd

1. Jhund Sarai, Gurgaon

2. Ambala, Haryana

IT Multi Product

41.278 3237.48

Mr. K. N. Gupta

7 Raheja Haryana SEZ Developers Pvt. Ltd

1. Dharuhera‐Rewari Belt

2. Ghatta, Gurgaon

Multi‐product Electronic Hardware & Software including ITES

2000 132

8 Natasha Housing & Urban Development Ltd.

Panipat, Haryana Multi Product 1000

9 Gurgaon Convention City Private Limited

Village Dhanwapur and Sarai Alawardi, Gurgaon, Haryana

Services 240

10 Bentex Towers Pvt. Ltd

12, Roje Ka Gujjar, Distt. Gurgaon (Gurgaon)

Multi‐Services 168

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11 M/s. Orion Infrastructure Pvt. Ltd.

Bandhwari, Gurgaon, Haryana

IT/ITES 130

12 Orient Craft Infrastructure Ltd

Gurgaon, Haryana

Textile 113.35 Mr. Ashok Bhayare

13 Uppal Developer Private Limited

Sec‐2, IMT Manesar, Gurgaon Rathiwas Village, Gurgaon

Multi services

106.3101 Mr. Gyan Bansal

14 Shreeaumji Developers Pvt. Ltd

1. Tehsil Faruknagar, District Gurgaon, Haryana

2. Tehsil Faruknagar, District Gurgaon, Haryana

Automotive

Apparel

101

101

Mr. P. K. Tripathi

15 Ansal IT City and Parks Limited

1. Village Bhigan and Kurad Ibrahimpur, near Murthal, Dist. Sonepat, Haryana

2. Village Badshapur,

Gurgaon, Haryana

Engineering Goods IT/ITES

100 10.93

Mr. Rajiv Dayal

16 Parsvnath Developers Limited

1. Gurgaon‐Sohna Road, Gurgaon, Haryana

2. Kundli, Sonepat, Haryana

IT/ITES Food Processing Industries

46.13 100

Mr. Anil Seth

17 Rockman Projects Ltd.

Delhi‐Jaipur National Highway, 10 KM from IMT, Manesar, Gurgaon

Multi‐Services 100 Mr. C.S Agrawal

18 Vipul Ltd. Fazilpur & Behrampur Villages, Gurgaon

IT/ITES 60 Mr. Brijesh Bhanote

19 M/s Roseview Infrastructure Developers Limited

Gurgaon, Haryana IT/ITES 44

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20 Pioneer Urban Land and Infrastructure Limited

Village Ghata, Gurgaon, Haryana, very close to NH‐8

IT/ITES 40.48 Mr. Jaju

21 Ireo Investment Holding III Ltd.

31, Ghata, Behrampur and Balola in District Gurgaon, Haryana

Electronic Hardware, IT/ITES

40 Mr. Lalit Goel

22 Dr. Fresh Healthcare Pvt. Ltd.

Gurgaon IT/ITES 30.35

23 Luxor Cyber City Pvt. Ltd.

Village Sikohpur, District Gurgaon

IT/ITES 28 Mr. Gyan Bansal

24 Global Health Private Limited

MediCity, Sector 38, Gurgaon, Haryana

Biotechnology 17.41 Mr. Naresh Trehan

25 Ascendant Estates Private Limited

Gurgaon, Haryana IT/ITES 15.2

26 Assotech Realty Pvt. Ltd

Gurgaon, Haryana IT/ITES 10.62 Mr. Indrapreet

28 M/s. Sunwise Properties Pvt. Ltd

Gurgaon IT/ITES 10.12

29 Metro Valley Business Park Private Limited

5th Mile stone, on Gurgaon ‐ Faridabad Road, Opp. Ansals Valley View Apartments, Gurgaon, Haryana

IT 10

30 Selecto systems Pvt. Ltd

Main Mathura Road Faridabad Haryana

IT / ITES 3.34

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SEZs in Haryana

Single Vs Multi Product

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Distribution of products

Major Competitor

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Company with Maximum area to set up SEZs

28

Maximum no. of SEZ’s under one company

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Percentage of land acquiered by the Companies

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Research Findings

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Ansal IT City and Parks Ltd

Ansal’s is renowned globally for offering a perfect blend of luxury and comfort. An ISO 9001:2000 company, it has gained recognition as a premier organization in the field of housing, institutional, commercial and industrial construction. It has pioneered many consumer‐friendly innovations too.

Village Badshahpur, Sohna Road, Gurgaon

This project has been planned over 27 acres of land with a built‐up area of approx. 2mn Sq. ft. Govt. of India has granted Formal Approval to this project. The land has been fully acquired. This shall be designed to cater the end requirements of IT/ ITES sector with robust infrastructure and specifications.

Ansals does not consider any company as its competitor as according to them demand will be more than supply. It considers that its credibility. Established brand image, 40 years of experience, and its segregation of teams for IT, Retail, Residential etc are its strength that keeps its ahead of other players in the market.

The company plans to provide a medi‐centre, offices, shops and housing facilities in its non‐processing sector. It has tie up with D R, a Dubai Company for foreign investment.

The construction work has started and tower work is in progress. It will take around3‐5 years to complete the construction.

Murthal, Sonepat, Haryana

Granted formal approval from Government of India to develop as Engineering Goods sector SEZ. Strategically located on NH‐1 (village Bhigan & Kurad brahimpur), it will cover an area of approx.250 acres.

Besides the dedicated manufacturing zone, it will also consist of residential options, commercial options, amenities, facilities and other supporting social infrastructure. It shall provide an excellent manufacturing option for setting up of exporting units involved in hand tools, auto components, heavy and light machinery, utensils and other such engineering goods.

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The land has got in‐principal approval and 100% acquisition of land has been done. It considers that its credibility. Established brand image, 40 years of experience, and its segregation of teams for IT, Retail, Residential etc are its strength that keeps its ahead of other players in the market.

According to Ansals, the demand for export of engineering goods is more in this belt therefore apart from above mentioned strengths; this also proves to be beneficial for the company.

Currently they do not have any specific plans for next year but they will be going for notification for this SEZ. The Engineering Goods SEZ is different from IT SEZ in business model.

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Assotech Realty Pvt. Ltd.

Assotech, a frontrunner in the real estate fraternity, now presents India's most impressive business hub for tomorrow. Assotech IT SEZ will be one of the largest and finest IT destinations in the country. Distinctly contemporary in style, all the buildings will have a judicious combination of attractive glass façade, stones and metal panels. Assotech IT SEZ will be an integrated, environment‐friendly and energy‐efficient business space that uses both passive and active intelligence to maximize benefits for its occupants.

This massive business hub is planned over an area of 40 acres with approx. 2.7 million sq. ft. of area comprising of IT workspace and 1 million sq. ft. of area of retail, residential and recreational space.

Key Features

• Ultra‐chic facade for each building.

• 100% power back up for entire electric supply.

• Centrally air‐conditioned ‐ AHUs located on each floor.

• Modern fire detection and suppression system with sprinklers, fire and smoke detectors.

• Intelligent vehicle parking.

• Foolproof security systems

• Last mile telecom and fiber optic connectivity through various service providers.

• Autonomous power support from own grid

Value Adds

• Green and intelligent buildings.

• A helipad within the complex.

• A state‐of‐the‐art convention center.

• Energy‐efficient and environment‐friendly planning.

• Professional property management by one of the top international property management firms.

• Low operating cost through economies of scale.

• Water conservation, re‐processing and rainwater harvesting facility.

• Data Vault (Face/Retinal Scan).

• Green building materials, composites and consumables.

• Passive intelligence to maximize natural light.

• Over 100,000 sq. ft. of a one‐of‐its‐kind recreational zone with a huge sports club.

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Assotech IT SEZ is nestled in the heart of the futuristic city of Gurgaon. Located on the Sohna Road, it's just a 30‐minute drive from the International Airport and 10 minutes away from the NH 8. Furthermore, it is situated in close proximity to plush residential complexes and malls of Sohna road. The strategic location of the project has been already taken hand‐in‐hand by the global IT majors. They even placed their SEZ in Gurgaon because of IT hub and they believe in Gurgaon bulk orders are received.

Assotech believes Uppal Developer Pvt. Ltd. to be their major Competitor because Uppal is also coming up with and IT/ITES SEZ in Gurgaon which is already notified and Assotech is still waiting for their notification. Professionally managed company, experience, modern techniques and technology for infrastructure are few strength of Assotech which they believe makes them ahead of their competitors.

Assotech is currently having overseas clients, good links and ready investors. They believe that they won’t be facing any problem for attracting clients for their SEZ. Assotech is also having a joint venture with GHI Finlease & Investment Pvt. Ltd.

Assotech is also ready with their Master plan and finance but waiting for notification. As soon as they get notified they will start with construction. They are even waiting for government policies to stabilize which could take 6 months according to them. It will take approximately 3 years to complete this project. They have plans for their non‐processing zone like service apartments, recreational activities and clubs.

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DLF Limited

The DLF Group has charted it next growth steps to retain its leadership position in India. Already a major player in locations across the country, including key metro cities and urban centers, DLF, with over Six decades of experience, is focusing on strengthening its lateral and vertical business drivers.

The group is capitalizing on emerging market opportunities to deliver high‐end facilities and projects to its wide base of customers by constantly upgrading its internal skills and resource capabilities.

The DLF Group has made significant progress in pursuing new business opportunities in hotel, infrastructure and SEZs (Special Economic Zones). DLF and Laing O’Rourke, UK is the strategic partner in several infrastructure projects. Laing O’Rourke are global leaders in construction credited with landmark projects such as the Dubai International Airport, Millennium Tower and the T‐5 Airport Terminal in UK. Through this joint venture (JV) the Group plans construction of projects in the sectors of expressways and airports.

DLF believes that the following are its primary competitive strengths:

• Brand name and reputation

• Extensive land reserves

• Scale of operations

• Strategic locations

• A tradition of innovation

• Experienced and dedicated management

DLF Universal(SPV), has chalked out plans to invest anywhere between US$ 6.7 billion‐US$ 8.9 billion over the next ten years for setting up at least half‐a‐dozen Special Economic Zones across the country.

DLF India has proposed SEZ in many parts in India like Amritsar, Ludhiana, Gurgaon and Ambala. Broadly speaking, DLF SEZs have targeted the IT Sector; however, DLF Townships have been on the agenda of DLF Universal.

DLF is coming up with around 6 SEZs in Haryana of which four are single product and two are multi product. The entire four single product SEZs are on IT/ITES domain with 2 of them have been notified and land for all the SEZ have been acquired or you may say the land was already present in their land bank.

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Single Product IT/ITES SEZs

DLF is coming up with its four IT/ITES SEZs in Gurgaon, of which two have been notified (30.15 Acre, Ph‐1 Gurgaon and 26.825 Acre, Gurgaon SEZs). For other two In‐principal and Formal approval has been taken and waiting for notification. The land acquisition was not big task for DLF as, requirement was small and they were already having a land bank.

DLF Believes Wipro and Infosys would be their major competitors for IT/ITES SEZs as they are well established IT firms and are having good contacts with a large no. of IT companies. Therefore, it could pose a threat for DLF.

To attract clients for their SEZs the strategy would be like, going for public offering so that anyone can buy a place in the SEZs. The company might even take help of some other firms which would help them earn clients.

They are ready with their Master plan and working on its approval. After which they would be starting with the construction work, do project monitoring analysis, planning etc. Construction will be done by a U.K. based construction company, Laing O’Rourke. For the next one year they would be working over infrastructure.

Multi Product SEZs

DLF Universal is having a Joint Venture with HSIIDC (Haryana State Industrial and Infrastructural Development Corporation) for both of its Multi Product SEZs.

The Multi Product SEZ at Gurgaon is being developed by DLF Limited over an area of about 20000 acres on Gurgaon – Jaipur Highway stretching between Manesar & Pataudi. The project cost of this SEZ has been estimated at Rs.26000 crore which is proposed to be financed through an equity funding through internal accruals of DLF and its Group companies and loans from infrastructure funding institutions and international banks.

A 2500 acres SEZ is also being set up by DLF in District Ambala with a capital cost of Rs.6700 crore. This is the first SEZ proposal approved by the HIPB outside the National Capital Region (NCR). The project is scheduled to be implemented in two phases to be completed in eight years. When implemented, the Ambala SEZ is likely to attract an investment of around Rs.4000 crore besides exporting goods worth Rs.6000 crore annually. A captive power plant has also been envisaged for the project which is expected to provide direct employment for more than 80,000 persons.

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The DLF 20,000 Acre project which has received “in‐principle approval” of the Central government is proposed to be set up on both sides of (Gurgaon‐Jaipur) National Highway 8, bisecting the proposed Kundli‐Manesar‐Palwal (KMP) Expressway. The proposed DLF SEZ will be developed in four phases. The first phase of 500 acres is expected to be completed by 2009 and the final phase by 2018.

The company expects that the SEZ will attract an investment of Rs 1, 24,000 crore in terms of fixed assets like industrial, commercial and residential stock. The annual export potential of the project has been pegged at $10‐12 billion once it is fully operational.

The company also proposes to demarcate a “free trade zone” within the processing area of the SEZ, which would lay emphasis on trading of goods and commodities manufactured within the SEZ, their packaging/ repackaging/ exhibition and the service sector, including BPOs, IT and ITES companies.

DLF will also develop a 20 million square feet of built‐up infrastructure, which would include business centres, Logistics Park, warehouses and hotels.

Almost 10,000 acres will be developed solely as residential zone, providing all categories of houses for people working in the SEZ. DLF will also develop about 2,000 to 3,000 acres as institutional area, providing educational, healthcare and research infrastructure.

DLF also proposes to set up a gas‐based captive power plant of 2,000 MW capacity at a cost of Rs 6,000 crore.

According to cautious company estimates, the land cost for the project will work out to Rs 10,000 crore. The development cost has been estimated at Rs 6,142 crore, the cost for readily built infrastructure at Rs 2,625 and the cost of project management at Rs 938 crore.

Faced with the new rule on special economic zones (SEZs) that limits the maximum area to 5,000 hectares, real estate major DLF may split its proposed mega zone in Haryana into two tax‐free enclaves in the region. DLF just had started the process of acquiring land. Now, there will be one SEZ of 5,000 hectare but if they get more land, they may set up another SEZ of 3,000 hectare in Gurgaon.

DLF finds Reliance as their major competitor for the 20000 Acre SEZ which is close to the Reliance 25000 Acre SEZ at Jhajjar ‐ Gurgaon. Suncity, according to them is also a competitor for their 2500 Acre SEZ in Gurgaon as Suncity is also coming up with around 8000 Acre SEZ at Ambala, Haryana.

To attract clients for their SEZs the strategy would be like, going for public offering so that anyone can buy a place in the SEZs. The company might even take help of some other firms which would help them earn clients.

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The land acquisition process is being carried on along with the designing of the Master plan. After this they would be working on the construction part, doing project monitoring analysis, planning etc. Construction will be done by a U.K. based construction company, Laing O’Rourke. For the next one year they would be working over infrastructure.

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D.S. Constructions Ltd.

DSCL is a pioneer in Build Operate Transfer (BOT) infrastructure development and engineering with projects under execution in the Highways, Expressways & Railway, Hydro Power and now pursuing Privatization of Airports & Ultra Mega Power Projects, Special Economic Zones, etc. in a short span of 5 years.

D S Constructions Ltd. has received in‐principle approval from the Ministry of Commerce & Industry, Government of India to set up and develop two (2) Special Economic Zones, one in the State of Haryana and the other in the State of Himachal Pradesh. Both the SEZs will be Multi‐Product SEZs and will cover an area of 5,000 hectares (Haryana) and 250 hectares (Himachal Pradesh) respectively with an estimated investment of INR 1,20,000 Million and INR 6,000 Million respectively. The SEZs shall be developed in an integrated manner catering to business (industrial and commercial) activities facilitated by social, recreational and residential infrastructure, utilities, facilities and services. This will be done along the lines of some of the internationally known SEZs such as Jebel Ali in Dubai, Shenzhen and Suzhou in China.

SEZ in Palwal, Haryana

The SEZ in Haryana will cover an area of 5,000 hectares (12,500 acres) and shall be developed in phases. The land use plan of the zone being prepared in consultation with internationally reputed consultants will adhere to various regulatory norms under the provisions of the SEZ Act 2005 and SEZ Rules 2006. The planning and development norms would be comparable to the best in the world and shall provide for open spaces, green areas, internal / arterial roads and walkways and well‐supported by in‐zone utilities and facilities.

The SEZ shall attract and host a number of units in the manufacturing sector such as Auto Components, Engineering Goods, Pharmaceuticals, Processed Foods, Electrical and Electronic Goods, Readymade Garments, Gems and Jewellery, Sports Goods, Handicrafts and service sectors such as IT enabled Services (ITES), Logistics and Warehousing and Trade Facilitation.

The SEZ shall have a dedicated captive power plant exclusively for the units / residents within the zone. It is estimated that the SEZ at Palwal shall create direct and indirect employment opportunities for over

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1 lakh people and shall go a long way in upgrading the socio‐economic conditions of the populace in the surrounding region.

The company plans to dedicate 60 per cent of the area for industrial, residential and also commercial purposes whereas rest would be utilising for developing infrastructure.

Under the company’s plans, nearly 4,250 acres would be utilised for setting up of Light Industrial Units, including Auto Components, Pharmaceuticals, Food Processing, Printing and Publication, Electrical and Electronic goods, Garments, Value addition processing units, Gems and jewellery, toys and sports goods, Handicrafts and Trade and Business Enabling Industries.

It plans to build up residential and housing facilities in 3,750 acres whereas 375 acres shall be allocated for Commercial purposes while the remaining 5,000 acres shall be allocated for service areas and infrastructure, such as open spaces, green areas, roads and walkways, public utilities, administration blocks and inland container depot etc.

The farmers of the SEZ area would not be in any loss as the company had decided to spend 25 per cent of its total cost of the project which comes to INR 2,500 crore for land acquisition and INR 4,750 Crores on developmental activities. The remaining INR 2,750 crore would be utilised for other related areas. The project would be completed over a period of ten years in two phases and 35 per cent construction would be undertaken in the first year of its construction.

Till date approximately 30‐40% of land has been acquired by the company. The company is not taking any help of the government for acquiring land. It is purchasing the land directly from the farmers utilizing all of its resources. DSCL considers that their brand name and their money power is their major strength. They focus on providing a comfortable environment to their clients. Reliance Industries Ltd. is their major competitor as told by the executive, DSCL.

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Emaar MGF Land Pvt. Ltd.

Emaar MGF Land Private Limited is a joint venture between Emaar Properties PJSC Dubai, one of the world’s leading real estate company and MGF Development Limited, among India’s leading real estate developer. This partnership promises to usher in a real estate revolution in India with the development of world class townships across the country. A collaboration that has brought in the largest FDI in India’s real estate space and opened up the horizons of tomorrow.

Emaar MGF has also floated a 50:50 joint venture with Australian construction major Leighton Asia to execute projects worth $2.5 billion in India over the next five years. The joint venture has earmarked an initial investment of $150 million for the first three years.

Emaar MGF says that they have brought the largest‐ever FDI in the real estate sector in India. Emaar‐MGF has also tied up with Accor, global leaders in economy and budget hotels, to set up 1,000 budget hotels in India under the brand name Formule 1 in the next 10 years. They say they want to change the way realty business is done in India.

Emaar‐MGF says that their projects lined up in the joint venture were in six verticals ‐ residential, hospitality, commercial and retail, education, healthcare and IT parks and special economic zones (SEZs). Emaar MGF is engaged in Pan‐India projects includes nine special economic zones (SEZs) and 50 hospitals.

Emaar MGF believes that there is a positive future for SEZ market in Haryana. Emaar also has a belief that they won’t be facing any competition in this sector. They say that they don’t consider anyone their competitor. According to them their strength is their international standards in handling projects and their ability to take on big scale projects. The marketing strategy to attract clients for their SEZs is they planning to invite the best companies in the specific product category. At present also they do have few clients for their SEZs. For power management and water supply they are looking at various options i.e. energy efficiency, recycling and green buildings.

Emaar MGF is coming up with around 10 SEZs in Haryana. This includes three Multi Products and seven Single Products (Five IT/ITES, Auto Ancillary and Gems & Jewellery)

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Single Product IT/ITES SEZs

Emaar MGF is coming up with five IT/ITES SEZs in Haryana and all are going to be developed in Gurgaon. The reason why they opted for Gurgaon is because they think this location makes sense economically and is the most viable option for the company. In‐principle and formal approval has been taken for these SEZs. Company is working on land acquisition part for all these SEZs.

1. Lakhnaula, Gurgaon with a 600 Acre area: For this SEZ 50% land has been acquired by now. Company is working on land acquisition part. They have planned to set up 210 Acre for residential purpose and 60 Acre of land for commercial activities in their Non‐Processing zone. For the business model of coming years some of their financial details are:

a. Cost of Land and Development – Rs 480 Crores

b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage treatment Plant, etc ‐ Rs 84 Crores

2. At Gurgaon with a 70 Acre area: For this SEZ full 100% land has been acquired. Company is waiting for the notification. They have planned to set up 24.5 Acre for residential purpose and 7 Acre of land for commercial activities in their Non‐Processing zone. For the business model of coming years some of their financial details are:

a. Cost of Land and Development – Rs 42.50 Crores

b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage treatment Plant, etc ‐ Rs 8.25 Crores

3. Shikohpur, Gurgaon with a 250 Acre area: For this SEZ 30% land has been acquired by now. Company is working on land acquisition part. They have planned to set up 87.5 Acre for residential purpose and 25 Acre of land for commercial activities in their Non‐Processing zone. For the business model of coming years some of their financial details are:



4. Villages Kherki Daulla and sihi, Gurgaon with a 50 Acre area: For this SEZ 95% land has been acquired by now. Company is working on land acquisition part. They have planned to set up 17.5 Acre for residential purpose and 5 Acre of land for commercial activities in their Non‐Processing zone. For the business model of coming years some of their financial details are:


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5. Bans Hariya, Gurgaon with a 300 acre area: For this SEZ 35% land has been acquired by now. Company is working on land acquisition part. They have planned to set up 105 Acre for residential purpose and 30 Acre of land for commercial activities in their Non‐Processing zone. For the business model of coming years some of their financial details are:



Single Product Gems & Jewellery SEZ

Emaar MGF is coming up with a 100 Acre Gems & Jewellery SEZ in Haryana and its going to be developed at Naweda Fatehpur, Gurgaon. The reason why they opted for Gurgaon is because they think this location makes sense economically and is the most viable option for the company. In‐principle and formal approval has been taken for these SEZ. Company is working on land acquisition part for this SEZ.

For this SEZ 95% land has been acquired by now. Company has planned to set up 35 Acre for residential purpose and 10 Acre of land for commercial activities in their Non‐Processing zone. For the business model of coming years some of their financial details are:



Single Product Auto Ancillary SEZ

Emaar MGF is coming up with a 250 Acre Auto Ancillary SEZ in Haryana and its going to be developed at Banskusla, Gurgaon. The reason why they opted for Gurgaon is because they think this location makes sense economically and is the most viable option for the company. In‐principle and formal approval has been taken for these SEZ. Company is working on land acquisition part for this SEZ.

For this SEZ 76% land has been acquired by now. Company has planned to set up 87.5 Acre for residential purpose and 25 Acre of land for commercial activities in their Non‐Processing zone. For the business model of coming years some of their financial details are:

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a. Cost of Land and Development – Rs 200.6 Crores b. Boundary walls, roads, drainage, water supply, Rain water harvesting, Sewage

treatment Plant, etc ‐ Rs 34.7 Crores

Multi Products SEZ

Emaar MGF is coming up with 3 SEZ in Haryana, of which two in Gurgaon and one in Faridabad. The reason why they opted for these places was because they think this location makes sense economically and is the most viable option for the company. In‐principle and formal approval has been taken for these SEZ. Company is working on land acquisition part for all this SEZ.

1. Village Boda Kalan, Gurgaon with a 10,000 Acre area: For this SEZ 5% land has been acquired by now. Company is working on land acquisition part. They have planned to set up 4000 Acre for residential purpose and 2000 Acre of land for commercial activities in their Non‐Processing zone. For the business model of coming years some of their financial details are:



2. Jahajpur, Gurgaon with a 5000 Acre area: For this SEZ 25% land has been acquired by now. Company is working on land acquisition part. They have planned to set up 2000 Acre for residential purpose and 1000 Acre of land for commercial activities in their Non‐Processing zone. For the business model of coming years some of their financial details are:



3. Machigargh, Bhupani, Faridabad with a 2500 Acre area: For this SEZ 50% land has been acquired by now. Company is working on land acquisition part. They have planned to set up 1000 Acre for residential purpose and 500 Acre of land for commercial activities in their Non‐Processing zone. For the business model of coming years some of their financial details are:



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Luxor Cyber City Pvt. Ltd.

The boom in real estate in India has opened up new growth opportunities for blue‐chip corporate houses ready to expand in terms of investments, operations and strategic partnerships. In tune with the current trend, the Luxor Group has diversified into real estate development in 2003 and tied up with the renowned Uppal Group, a corporate developer & builder with three decades of industry experience and more than 500 projects to its credit. Our strategic initiative to enter the capital‐intensive commercial real estate development segment not only ensures rapid growth but also helps create value for shareholders as the new ventures will be a standing testimonial of the high‐profile brand image enjoyed by the Luxor Group spelling impeccable quality and unfailing reliability.

In a bid to promote the diversification move, the Luxor Group has made huge investments in commercial real estate development and acquired suitable land for such premium projects as cyber cities, luxury hotels, office complexes, commercial plazas and Special Economic Zones (SEZs). The Luxor‐Uppal consortium has already started operations across Delhi and the National Capital Region (NCR) – undertaking a state‐of‐the‐art IT Park development in Gurgaon and building mega complexes in the heart of New Delhi to meet the growing demands for high‐value office/commercial space. The Group is also developing an ultra‐modern Special Economic Zone (SEZ) in the NCR to help serve diverse industry segments.

Luxor Group has got a nod for the Gurgaon SEZ (Special Economic Zone) to be called Luxor Cyber City. A Cyber City, as explained by the Haryana Government Master plan 2021 is: "Cyber City means self contained intelligent city with high speed communication access to be developed for nucleating the Information technology concept and germination of medium and large software companies".

The SEZ land is located at Village Sikohpur, Gurgaon and it spread over an area of 28 hectares. The project is aims at concentrating on the IT and IT Enabled Services (ITES) companies. The facilities provided would be housing apart from the IT space, supporting infrastructure such as, restaurants, housing, schools, hospitals, entertainment zones among other essential services.

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Orient Craft Infrastructures Ltd.

Garment exporter Orient Craft Ltd (OCL) plans to develop a 650‐acre textile Special Economic Zones in Gurgaon with an investment of Rs 2,000 crore. In the official Master plan 2021 a total of 4,570 hectare is allocated to the SEZ. They have acquired 460 acres of land for the purpose and will expand it to 750 acres. The first phase of the SEZ consisting of 284 acres has been completed with an investment of Rs 500 crore as said by OCL Managing Director, Mr. Sudhir Dhingra.

The `boutique SEZ' will house specialty players of the textile industry and is expected to provide employment to about 30,000 people.

The other two phases are proposed to be completed by 2010 end and will also house some power companies and hotels. Part of the rest of the investment of Rs 1,500 crore will come from these hotels and other companies.

The company has a partnership with Europe's s. Oliver, a retailer of garments and lifestyle products. The partnership entails setting up of retails stores in metros and other major cities in the next five years. Other than Oliver, Orient Craft boasts of a long list of international clientele including Gap, Banana Republic, Tommy Hilfiger, Marks & Spencer, and Ralph Lauren, among others.

The reasons that made the company to venture into SEZs were its 40 years of expertise in garments and apparel and its hi‐tech infrastructure. They intend to come up with a unique product. The SEZ will be having industrial, institutional, residential, and commercial area. The company finds that its experience in garments, clientele all across the world and its financially sound position is its strength and motivates it to venture into SEZs.

The project will take around 4 years to complete and by October this year the construction work will begin.

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Parsvnath Developers Limited

Parsvnath Developers, the Delhi‐based real estate developer is one of the leading real estate development companies in India with operations in 41 cities and 14 states.

Strength of Parsvnath:

• Robust land bank at emerging locations

• Reputed developer

• Well knitted marketing web

• Diversified business model

Parsvnath is coming up with 9 SEZ all over India. Parsvnath has been very innovative while placing their SEZs in India. They have placed their SEZs according to the specialty of the area like for example, Agra is famous for leather so they are setting up a leather SEZ at Agra, Moradabad is famous for Handicraft so a Handicraft SEZ at Moradabad, similarly Gems & Jewellery SEZ at Jaipur, IT/ITES SEZ at Gurgaon, Food Processing SEZ at Sonepat and so on.

Parsvnath is having two SEZs in Haryana. One is 250 Acre IT/ITES SEZ at Gurgaon‐Sohna Road Gurgaon and another one is 250 Acre Food Processing SEZ at Kundli, Sonepat, Haryana.

IT/ITES SEZ Gurgaon

This is a 250 Acre SEZ, In‐principal and formal approval has been take for the SEZ. Company is waiting for the Notification as full 100% land has been acquired. They believe that they won’t be facing any competition as by 2009 STPI norm is going to end due to which all the companies won’t be able to utilize the Tax benefits. This will make IT companies to opt for SEZs because of several incentives and tax benefits. Parsvnath so believe that early move advantage, brand name and experience in developing several infrastructures like DMRC’s project, makes them ahead of their competitors.

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Road shows, share plans and demonstration are few strategies that company will be performing for persuading clients for their SEZ. Company is basically waiting for notification after that they will be working over Master Plan approval and its construction. Company will depend on Government for power and water. Company has even planned housing, commercial and malls for their non Processing Zone. According to them it will take near about 2‐3 year complete.

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Food Processing SEZ Kundli, Sonepat

This is a 250 Acre SEZ, In‐principal and formal approval has been take for the SEZ. Company has acquired 50‐80% of land till yet. They believe that they won’t be facing any competition as they would be having monopoly in this sector, as no other developer is coming up with the same SEZ. Parsvnath so believe that early move advantage, brand name and experience in developing several infrastructures like DMRC’s project, makes them ahead of their competitors.

Road shows, share plans and demonstration are few strategies that company will be performing for persuading clients for their SEZ. Company is basically working over land acquisition part and makes it notified as soon as possible then will work over Master Plan and its approval following to construction. Company will depend on Government for power and water. Company has even planned housing, commercial and malls for their non Processing Zone. According to them it will take near about 2‐3 year complete.

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Raheja Haryana SEZ Developers Pvt. Ltd.

The Rajan Raheja Group vision is to be a multi‐talented player and rank amongst the top players in each and every sphere of its operation.

In this endeavor they have spread their scope from Real Estate to Building materials, Hospitality, Automotive batteries, Cable TV, Publication, Retail, Food, Mutual Funds, Insurance, Health and beauty, Software development and Petrochemicals.

The group has ventured into SEZ by the name of Raheja Haryana SEZ Developers Pvt. Ltd. The group is coming up with two SEZs in Haryana: one in multi‐product and the other in Electronic Hardware & Software including ITES. They were the first in SEZ market to get in‐principal approval from the Government

Ghatta, Gurgaon

Raheja Haryana SEZ Developers Pvt. Ltd is coming up with a single product SEZ in Electronic Hardware & Software including ITES SEZ in Ghatta, Gurgaon. The area of this single product SEZ is 330 acres which has been acquired fully. The group is expecting the notification in a short time. As soon as they get the notification, the construction work will begin.

The facilities provided in the SEZ would be housing for the workers, hotels, recreational activities etc. The power and water supply will be taken by the government.

As Gurgaon is developing as IT hub, therefore Raheja selected Gurgaon in NCR for the construction of IT SEZ. In their view, the supply of IT services will be not adequate to fulfill the demand in future. Competition is bound to be there. Therefore, they think DLF Limited and all up coming small companies will give them competition.

Location of the land and the strategy to make farmers their partners are strengths of the group. According to Raheja’s, if the farmers will have faith in the company and if they’ll remain satisfied then the company will not be having any problem in acquiring land from them.

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By next year, the company plans to prepare the master plan for the SEZ and simultaneously look for foreign investors. Once this is done construction part will start.

Dharuhera‐ Rewari Belt

With a positive view of the SEZ market in Haryana, The Rajan Raheja Group is coming up with SEZ in Dharuhera‐Rewari Belt. The SEZ will be spread across an area of 5000 acres and will be a multi‐product SEZ. The Central Government has given principal approval for the SEZ and till date 5‐10% land has been acquired. The placing of this multi‐product SEZ has been done keeping in mind the expansion of Gurgaon City. The SEZ will come under industrial area once it expands. The group considers that the land of its SEZ is the best located land in Palwal, Gurgaon near Delhi‐Jaipur railway line.

The major competitors, according to the group, are DLF Limited and Reliance Industries Ltd. Yet it considers the placing of its SEZ as its strength. They have a unique way of working on SEZs. They plan to purchase the land directly from the farmers and in return make them partners in the company. They also intend of providing employment to at least one member of the farmers’ family and share some percent of profits with them. The construction of multi‐product SEZ will start on the similar lines once IT/ITES SEZ becomes fully operational.

Raheja’s plan to advertise through various media channels. At later stage, they will be deciding which specific mode of advertising will be used to attract clients. For the next couple of years main emphasis will be on acquisition of land.

The plans for this SEZ include rain water harvesting, housing facilities for workers, hotels, recreational activities, setting up of harvesting plants, corporate farming, electricity production through wind mills, etc.

According to executive whom we interviewed, Raheja Haryana SEZ Developers Pvt. Ltd. it will take around 20 years for a fully operational multi‐product SEZ.

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Reliance Haryana SEZ Pvt. Ltd.

Reliance Industries Limited

Reliance Industries Limited, founded by Dhirubhai H. Ambani (1932‐2002), is India’s largest business house having activities that span exploration and production (E&P) of oil and gas, refining and marketing, petrochemicals (polyester, polymers and intermediates), textiles. The company exports its products to more than 100 countries the world over. Reliance emerged as India’s Most Admired Business House, for the fourth successive year in a TNS Mode Survey for 2004.

Following are the some of the key financial indicators‐

Turnover Rs 73,164 Crores USD 16.7 Billion

Gross Profit Rs. 14,261 Crores USD 3.3 Billion

Cash Profit Rs. 12,087 Crores USD 2.8 Billion

Reliance Contributes‐

7.7% of India’s total Exports 7.9% of Government of India’s indirect tax revenue 4.5% of the total market capitalization 11% weightage in the BSE Sensex 8% in the Nifty Index

The Reliance Group Companies include: Reliance Industries Limited, Indian Petrochemicals Corporation Ltd. and Reliance Life Sciences Limited. In the Fortune magazine list of the Top 500 global corporations, issue dated 25th July 2005, Reliance Industries has been ranked at number 417, up from 482 in 2004.

The Reliance group is well recognized for its ability to set up Mega projects and execute them in record time using state ‐of –art technology, processes and systems. Its expertise lies in working on economies of scale and developing integrated right from the raw material to the reaching of the finished product to the end consumer.

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Some of the projects of mega magnitude that it has undertaken are‐

Establishing the Patalganga Petrochemical factory Commissioning of the world’s third largest refinery at Jamnagar in a record time Setting up of an over 60,000 kms of Optic fiber based telecom network and reaching over

10 million customers to emerge as a strong contender for the top position in the Indian telecom market.

The Reliance SEZ at Haryana‐ Development of a Master Plan

Background

Reliance proposes to develop the SEZ in Haryana as part of its vision to develop state‐of‐the‐art infrastructure for the nation. The SEZ should be able to attract MNC developers as investors also. To this end, as per Reliance’s internal policies, the norms and standards behind the configuration of infrastructure will be kept as high as possible.

The National Capital Region includes Delhi and its satellite towns. One third of Haryana is part of the NCR plan. Gurgaon, Rohtak, Panipat and Faridabad are some of the key districts that have to be developed as part of the NCR. Haryana already boasts of industrial hubs of Faridabad and Gurgaon. In the recent past Manesar has been developed as an industrial hub and plans are on way to establish an Industrial township in Manesar.

In the last decade economic development has taken place in the suburbs of Delhi NCR. It has many multinationals as well as National Companies shifting and establishing their headquarters in the City. The development of shopping malls, commercial and residential infrastructure has been tremendous but there is still a lot to be desired.

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Learning from these expansions of the NCR

The growth of the suburbs of Delhi has been exponential and has resulted in‐

Gross shortage of both electricity and water in different areas. Lack of a contiguous sewerage system and a system of appropriate waste disposal.

Unregulated flow of traffic, resulting in traffic. Roads though wide, are not designed to cater to the overflow of the traffic that is coming in from Delhi. With the coming in of the call centers that house a large workforce there is a great need for parking areas that are missing

The expected quality of life that was desired from suburbs is missing.

These and some more critical issues will require Reliance to ensure that the project is taken up in a planned manner on the drawing board with a complete master plan of developing a First World City, and its continued growing needs.

It is for this reason that the plan will emphasize on the internal development of roads, water supply, power generation and supply and sewerage. Adequate development of external infrastructure such as full development of connectivity to the KMP expressway, National Highway (NH 8) will also be of equal importance. It is proposed to have a Rail Line within the SEZ along with an International Container Depot. Development of an Airport to cater to the International as well as Domestic needs of Cargo and Passenger movement will also be a part of the plan. It is proposed by the Haryana government to extend the Metro Link from Delhi to Manesar. This would provide for linkage to the proposed SEZ also.

The Focus of the SEZ will be on development of non/low‐polluting medium and large industries, as also trading and services. All facilities required for industries together with housing for the entrepreneurs and employees working in the area are being planned for the Special Economic Zone. The proposed Special Economic Zone will function as an integrated package with all the required facilities, which will ensure sustainable development of medium and large scale industries and service activities with sufficient provision for future growth and expansion.

Locating the Reliance SEZ

The intention is to build a fully integrated multi product economic zone. The proposed location will be off National Highway 8 in Gurgaon and moving north extends into Jhajjar district adjacent to the proposed Kundli‐Manesar‐Palwal (KMP) expressway. The size of the SEZ will be in excess of 10,000 hectares (25,000 acres).

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SEZ Master Plan‐ General Considerations

The entrepreneurs who will set up industries in the SEZ would undoubtedly have their own individual requirements. However, the Master Plan must provide for availability of built‐to‐use design factories and flatted factories according to the customer’s requirement. Besides, certain communal‐level facilities will have to be provided such as‐

Amenities in the form of landscape features such as open green areas, green buffers along the peripheral, green belts as a part of arboricultural scheme, etc.

Facilities for Industrial Waste Management (collection, processing and disposal) Availability of labor at reasonable cost. Proximity to source of supply of raw materials Transportation facilities to allow linkages with raw material sources and ancillary supplies Uninterrupted availability of power supply, electricity, water, sewerage etc.

Besides, the Master Plan will provide for:‐

Availability of services like security, restaurants, etc. on commercial lines. Amenities such as clubs, recreation centers, family entertainment centers, auditorium,

community halls, etc.

The SEZ units would, be subject to the local laws, rules and regulations in regard to area planning, sewerage disposal, pollution control and the like, and it is expected that a single authority clearance for all matters is created.

While planning the SEZ development, the following factors will be taken into account:

SIZE:

Size of the SEZ is an important issue, especially for a fast expanding region of the NCR. Although as per present government regulations the minimum size of SEZ should be 1000 hectares, the global experience as well as per the experience of expanding cities indicates that the size of the land must be such that it can cater to development of a fully integrated city, with complete amenities such as Airport, ICD, Rail links as well as a bustling economic activity mix. The size must cater to the demands of the growing new economic initiatives.

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Hence in order to build a strong economic zone that has fully integrated systems of infrastructure Reliance is looking at establishing an SEZ of a size in excess of 10,000 Hectares (25,000 Acres)

Layout:

The whole area will be suitably divided into a number of identified activity centers of different sizes. It is advisable to develop standardized modules of the plots within the proposed activity mix. This will automatically allow flexibity in planning to accommodate future development. In addition the layout will be developed with complete understanding of the phasing program. Integration of the financial aspects with physical planning aspects is the most important factor for success in implementation.

Management:

Various aspects such as monitoring of the polluting control norms and standards control over goods, storage and handling of industrial waste, common effluent treatment, etc. need advance planning. The Master Plan would take into account the relevant aspect of the management of the entire SEZ and the city.

Services and amenities:

The Master Plan will take into account planning for services and amenities. Advance planning of services and amenities avoids problems of administration later. Advance planning can substantially reduce the problems arising from maintenance of infrastructure.

Transportation:

The Mater Plan will lock at the transport linkages. As the SEZ requires regional, national as well as international linkages for freight movement, it generates a lot of traffic. The plan will have to take into account the linkages with the NH 8, KMP Expressway, Rail linkages, the Indian Railways as well as Metro Rail Link to Delhi and the other parts of the country and the development of an Airport for International traffic. Delhi enjoys the advantages of an advantage of an ideal location at the regional level, as it is a multi‐ modal transport interchange mode.

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Benefits of the Reliance SEZ

Benefits to the citizens of Haryana

• Establishment of world class city

• High quality of life in the SEZ

• Huge employment opportunities

• Access to international standard Facilities like Rail, Airport etc.

• World class infrastructure, institutions, recreation centers, offices at one place

Benefits to the State of Haryana

• Transfer of technology

• Significant investment in the state

• SEZ ICD to benefit surrounding geographic area

• Planned development for quality of life

• Benefits to units by forward and backward linkages in SEZ

Benefits to the Units

• 100% FDI allowed

• Income Tax rebate on investment in SEZ

• Exemption from Income tax

• Exemption from electricity duty and taxes on sale of self‐generated and purchased power

• Stamp Duty exemption

• Exemption from Service and Value Added Tax

• Exemption from Customs duties

• Single Window Clearances

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Rockman Projects Ltd.

Established over two decades back Rockman Group has had diverse business interests including Imports, Advertising & Marketing Services, Breweries, Metal & Coal, and Real Estate etc.

Rockman has also joined hands with some of the World's best names to support its new initiative. These include its technical partners.

Jurong International Group‐ Singapore is one of the largest SEZ developers in the world with a presence in 29 countries and 104 cities. They will assist Rockman in Master Planning, Setup, Design, Infrastructure Engineering Services, Architecture & Landscape, Technical Development and implementation of the master plan.

Ernst & Young, Management Consultants will be teaming up with Rockman to liaison with various Government Bodies for necessary permissions etc.

CB Richard Ellis Professional Consultants will carryout Market Study (analysis of Location Dynamics, Macro Economic Analysis) work out feasibility in Joint Venture participation, Demand Assessment and Development Planning, Investment services. Project Structuring, making of the Project Report, Debt and Equity Funding etc.

In Multi services SEZ that is coming up at Delhi‐Jaipur National Highway, 10 km from IMT, Manesar spread over an area of 250 acres, Trading and Warehousing services, Computer Software Services, Professional Services, Construction and related services, Educational, Environmental, Financial, Hospital, Tourism, Recreational, Biotechnology and Entertainment services etc can be set up.

The land has already been acquired fully and the in‐principal approval been taken by the Central Government. Within 2 months formal approval will be taken and by the year end the company will get its land notified. Then construction work will start which will take about 18 months to complete. The company considers Uppal Developer Pvt. Ltd. as its competitor.

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Shreeaumji Developers Pvt. Ltd.

Shreeaumji Developers Pvt. Ltd. is a new entrant in the market of SEZ. This company is a Joint Venture of Unitech Group, Jai Bharat Maruti and Minda Industries. The CEO of Shreeaumji Developers Pvt. Ltd. has been an employee of Unitech Group. He started this venture with the help of the two companies.

The company is coming up with two SEZs in Gurgaon: one in Automotive and the other in Apparel.

Faruknagar, Gurgaon

The SEZ to be constructed at Faruknagar is an Automotive SEZ. The area of this SEZ is 250 Acres. This single product SEZ has received in‐principal approval from the Central Government and has acquired almost 70% of the total land. (50% has been acquired and 20% is in process of acquisition.)

The land has been acquired by the company itself till now. But the company will take help from Government if the need should arise. They have location benefit as they already have a plant in Gurgaon.

The company plans to come up with housing and commercial activities in the non‐processing zone. In the beginning, the power and water supply will be catered by the government. Later on they’ll take up water harvesting.

The company finds its strength in the technical expertise of Unitech and its joint venture in automotive sector. It al ready has a tie up with Nissan. Funds are not its problem at present. At later stage if need arises then they’ll be taking help from any financial institution.

Shreeaumji Developers Pvt. Ltd. considers Emaar MGF Land Pvt. Ltd. as their competitor. But in regard with their marketing of their SEZ, they have no problems as such. They already have tie up with Japanese companies. And once the master plan gets finalized and infrastructure gets constructed they will start the marketing. As for the next one year they will concentrate of acquiring the remaining land and getting it approved. Once it gets formal approval they will start with marketing and housing and commercial activities. It will take around 2 years for the construction work to get over.

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Faruknagar, Gurgaon

Another SEZ that has to be constructed at Faruknagar is an Apparel SEZ. Just like Automotive SEZ the area of this SEZ is 250 Acres. This single product SEZ has also received in‐principal approval from the Central Government and has acquired almost 70% of the total land. (50% has been acquired and 20% is in process of acquisition)

The land has been acquired by the company itself till now. But the company will take help from Government if the need should arise. They have location benefit as they already have a plant in Gurgaon.

The company plans to come up with housing and commercial activities in the non‐processing zone. In the beginning, the power and water supply will be catered by the government. Later on they’ll take up water harvesting.

The company finds its strength in the technical expertise of Unitech. Funds are not its problem at present. At later stage if need arises then they’ll be taking help from any financial institution.

Shreeaumji Developers Pvt. Ltd. considers Orient Craft Infrastructure Ltd. as their competitor in apparel. But in regard with their marketing of their SEZ, they have no problems as such. Once the master plan gets finalized and infrastructure gets constructed they will start the marketing. As for the next one year they will concentrate of acquiring the remaining land and getting it approved. Once it gets formal approval they will start with marketing and housing and commercial activities. It will take around 2 years for the construction work to get over.

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Suncity Haryana SEZ Developers Pvt. Ltd

Suncity Projects Pvt. Ltd is a pioneer in conceiving and executing a profusion of urbane real estate projects arraying from Townships to Group housing to luxury Apartments to shopping Malls to Office Complexes. The group is focused on innovative design, superior standards of construction, customer service and Community values. With break ‐through technologies and development mediums the group has with every step, progressed towards giving an outstanding result. The company brings together the unmatched experience and expertise of three of India's most reputed business conglomerates: the Essel Group, the Action Group and the Odeon Builders. Suncity Projects foresees a spectrum of assignments ranging from complete township to high rise apartment complexes to giant shopping malls to amusement parks. Each project is a showpiece in its category reflecting the highest standards of planning and construction comparable with the very finest in the business.

Suncity believes that strength which keeps Suncity ahead of their competitors is its sound promoters (The Essel Group, The Action Group and The Odeon Builders), their good delivery record and good customer contacts. Suncity is having a positive view for the future SEZ market in Haryana.

Subhash Chandra‐promoted Essel group's Sun City received approvals to set up three zones. While two SEZs are coming up in Haryana, one is planned in Neemrana, Rajasthan. Of suncity’s 2 SEZ in Haryana Region one is Single Product SEZ i.e. IT/ITES with an area of 103.195 Acre in Gurgaon and another one is a Multi Product with an area of 8093.1 in Ambala.

Suncity's IT SEZ envisaged an investment of Rs. 811 crore and would provide employment to 24,000 people. Besides, the company says that had been given in‐principle nod for a 3,000 hectare multi‐product SEZ near Ambala that entailed an investment of about Rs. 16,000 crore, but are less focused towards it because of the difficulties in acquisition of land, as area is very large. Company says it will only be going for the Ambala SEZ if and only if Government helps them in land acquisition otherwise there In‐principle approval will expire by next year.

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Single Product SEZ “Jhund Sarai, Gurgaon”

A IT/ITES 103.195 Acre SEZ going to be developed in Gurgaon, Haryana with principal and formal approval been taken, full 100% land has been acquired till date and waiting for its Notification.

Suncity opted to have an IT SEZ in Gurgaon because Gurgaon has become an IT hub, so they thought it will help them to attract clients for their SEZ.

Suncity basically have no interest in SEZ’s. They are going in SEZ just because of the benefits which developers would be getting for developing an SEZ.

For this SEZ Suncity believe they won’t be facing any competition. Suncity thinks that as Gurgaon is IT hub so demand will be more and supply will be less i.e. No Competition.

Suncity at present have no client for their SEZ. They have not even started with any strategy to attract Clients. For future they are planning to opt for advertisement to persuade clients for their SEZ. Advertising would be mainly through media channels.

Suncity is expecting notification for their SEZ within a month. After being notified they will complete master plan. Once it get approval for their Master Plan will go construction part. They estimate that it would take 2‐3 years to complete with fully functional SEZ.

Multi Product “Ambala Haryana”

A Multi Product 8093.1 Acre SEZ going to be developed in Ambala, Haryana with In‐principal approval been taken, no land has been acquired till date and waiting for governments policy to be changed, which will help them in land acquisition.

They have not planned anything for their SEZ because government policies. They believe acquiring land is very difficult part in process of developing SEZ. They have not even thought of competition and competitor.

Their plans for next one year depends on if government helps in acquisition. Only then they will start with this SEZ otherwise they show no interest in SEZ. They even don’t bother of their In‐principle approval which will expire by next year.

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Unitech Haryana SEZ Ltd.

The Unitech multi‐product SEZ in District Sonepat is being set up near Kundli over an area of about 10000 acres. The cost of developing infrastructure in this SEZ would come to around Rs.10, 000 crore, which is likely to be funded through promoters’ equity and term finance. 35 percent of the total area in this SEZ will be utilised for industrial purpose and the remaining for residential, commercial and institutional utilities. The project, to be implemented in phased manner, has an employment potential of more than 1.25 lakh persons directly.

In the SEZ, there is a provision for 10 percent sweat equity for HSIIDC. The project would be set up by special purpose vehicles (SPVs) to be incorporated by HSIIDC and the JV partner companies. As per the agreements, HSIIDC will facilitate with the State Govt. to notify the project site as ‘SEZ Zone’ under the provisions of the Haryana SEZ act 2005 which restricts the land use conversion to any other use at the project site other than the SEZ. The SPVs shall procure the entire land comprising the project site at their cost. However, in case the developing agency is unable to acquire the land for any of the phases, the state govt. may acquire the same on behalf of the SPV in accordance with the land acquisition policy of the State which provides that not more than 25 percent land required for the project would be acquired by the govt.

The company considers DLF Limited and Reliance Industries Ltd. as its major competitors. The well established brand name, its strong clientele, and timely delivery are the strengths of the company. The clientele for the SEZ has been almost established. For the next one year Unitech Haryana SEZ Ltd. does not have any definite plans as the government policies are changing.

Unitech Group is coming up with a number of SEZs with different SPVs. One such kind of SPV is Pioneer Urban Land and Infrastructure Ltd. This SEZ is located at Village Ghata, Gurgaon, near NH‐8. It is an IT/ITES SEZ having the total land area of 40.48 hectares

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Uppal Developers Pvt. Ltd

Since its inception in 1979, the Group with over 500 projects has emerged as one of the leading real estate developers in the country. They are today altering the landscape of Delhi and NCR by building corporate complexes, commercial complexes and shopping‐cum‐office complexes. All of these bear the stamp of Uppal’s belief in Quality and Perfection. Each of these has been built on the basic principles of hard work, an unflinching commitment to Quality and the Quest to achieve more, and of course, an obsession with timely completion & delivery.

The Uppal group has got a gazetted notification from the central government that allows it to begin construction work on its 266‐acre special economic zone (SEZ) situated in Gurgaon. They are the first developer in the country to have got a gazetted notification for developing a multi‐services SEZ, and would fund the project cost both by internal accruals and debt and the final equity structure would be finalised soon. Uppal Developers Pvt. Ltd. is an SPV (Special Purpose Vehicle) of Uppal Housing Ltd.

Uppal's SEZ is located at Villages Rathiwas, Bhodakalan, Bhudka, Distt. Gurgaon, Haryana; on Main National Highway‐8 approximately 10 Kms towards Jaipur from IMT, Manesar, Gurgaon. The strategic placing of SEZ gives it a lot of advantage. The land was acquired when the SEZ policy was not clear. Since IMT Manesar is very close by, therefore for the industrial area will be very prove to be very beneficial for a multi‐services SEZ.

It is a multi‐services SEZ that will host knowledge industries like IT‐ITeS, biotech, robotics, nanotech and other R&D‐focused operations. It will also offer warehousing facilities and incubation service (a ready‐to‐move‐in facility from which a newly‐arrived MNC can operate while its permanent office is being readied).

The group will invest an estimated Rs 6,500 crore on developing approximately 22 million sq ft of built‐up space here. They are in talks with foreign developers and real estate venture funds for equity participation in this project. The detailed master plan for this project is in advanced stage and by July next year the construction work will begin. It will take around 8‐10 years to complete the construction.

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In addition, it is looking at developing a second, 62‐acre SEZ whose site is 3.5 km before Manesar. The group already owns the land for this project. The notification is awaited. This single‐product SEZ will focus on the IT‐ITES sector.

The company considers that its robust infrastructure (including arterial roads connecting each zone to the national highway and expressway), direct road connectivity to the nearest railway track off the Delhi‐Rewari rail line, efficient transportation facilities within the SEZ and to and from Gurgaon city area Environment friendly zone, own land bank, timely payments, effective marketing strategy are its strength.

The well established brand image of the company facilitates it to attract the clients. They are having a tie up with the U.S. based MNC, TCG group.

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Vipul Limited

Vipul Ltd, an 11‐year‐old real estate developer, has in the past developed such buildings in Gurgaon as Global Business Park and Millennium Plaza (in partnership with Unitech). Thereafter, the company has executed four commercial and four residential projects. Vipul group says that they are committed to deliver the special needs of their customers, with future in mind. And today they have expanded beyond the real estate business. The company’s commercial portfolio boasts of a number of prestigious complexes that house corporate like Gillette, Electrolux, Convergys, GTA and Genesis PR. In their world class commercial properties are Vipul Square, Global Business Park, Millennium plaza and statesman House, etc. Vipul Groups consist of Vipul Real Estates, Vipul Facilities management and Vipul Laing O ‘Rourke.

Vipul is coming up with a 150 Acre IT/ITES SEZ at Fazilpur & Behrampur Villages, Gurgaon Haryana. Landmark Holdings of the Dalmia Group, along with its international affiliate Banyan Real Estate, has agreed to invest 16.5 per cent and take a stake in Vipul's Rs 1,200 crore proposed Special Economic Zone (SEZ) in Gurgaon.

The project has received an in‐principle and formal approval from the Ministry of Commerce. Now they are waiting for it to get notified as they have full 100% land which is required for the development of the SEZ. The total investment in the project is likely to be in excess of Rs 1200 crore. The company, whose tenants include leading international IT firms such as Dell and has roped in international financial partners to give it the long term capital and financial muscle for faster and better execution of the project,.

Vipul is developing this IT/ITES SEZ in Gurgaon because of the most common reason of Gurgaon has become an IT hub these days. They were also having land in stock which they would utilized for either residential or commercial but due to the fact of Tax benefits and other benefits to developers company is looking forward to develop an SEZ there. Vipul is also having tie up with Varcovia Bank for investment in the project.

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Vipul finds DLF Limited to be its major competitor in this sector. Providing quality products and products on reasonable prices are few strength of Vipul’s, which they feel keeps them ahead of their competitors.

Vipul say they won’t have to make much of efforts for attracting clients for their SEZ, because according to them marketing demand push is low in Gurgaon as compared to any other place. Still they would prefer Media channel promotion for their SEZ.

Vipul is also not very much sure for their SEZ as not yet decided whether to go for SEZ or some other project. Vipul also say they are here to do business and will always prefer to go for best opportunity with whom they could make good amount of profit. But, they also mentioned might be they can come up with something different in this sector.

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Conclusion

After Conducting the entire survey and analyzing the data collected following conclusions were made:

Hypothesis H1 is true.

o H1: There is difference among existing SEZs in Haryana.

DLF Ltd. is the giving biggest competition of Reliance Haryana SEZ Pvt. Ltd, as they coming up with second largest (20,000 Acre) Multi‐product SEZ in Haryana as compare to Reliance’s SEZ i.e. 25,000 Acre.

Emaar is coming for largest number of SEZs in Haryana i.e. 10.

IT/ITES is the most common single product SEZ in Haryana. This is because of STPI norm which is providing additional benefits and incentives specifically to IT/ITES companies. It will expire by 2009. This will attract IT companies to occupy space in SEZs.

Maximum number of Single product SEZs has acquired their land.

Kundli‐Manesar‐Palwal Highway touches most of the Multi‐Product SEZs in Haryana, which is advantageous due to its connectivity with the SEZs.

Almost all of the Multi‐Products SEZs are at the starting stage of Land Acquisition (10‐25% been acquired).

Most of the companies are waiting for the government policies to stabilize.

Every company believes that there is a positive future for the SEZ market in Haryana.

Many companies believe that won’t be facing any competition. According to their perception supply would be dominating demand.

Raheja Developer’s are coming up with a unique concept for their SEZ. The farmers from whom the land will be purchased will eventually become their partners and will share the profit.

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Parsvnath has strategically placed their SEZs, on basis of locations specialty for a specific product. For example, IT/ITES at Gurgaon, Food Processing at Kundli, Leather at Agra, Handicraft at Moradabad, Gems & Jewellery at Jaipur etc.

Bibliography

We referred to various News Papers, News Articles and websites.

Websites:‐

• www.sezindia.nic.in

• www.indianindustry.com

• www.indianraj.com

• www.meaindia.nic.in

• www.aqod.com

• www.businessworld.in

• En.wikipedia.org

• www.financialexpress.com

• www.projectsmonitor.com

• www.expressindia.com

• Rediff news & many other NEWS Sites

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Annexure‐I

QUESTIONNAIRE Analyzing SEZ’s scenario in Haryana

Name of Developer: ______________________________________________________________________________ Name of SEZ: ______________________________________________________________________________

1. Type of SEZ: a. Single product _________________(Specify) b. Multi Product

2. Why this Product?

____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________

3. Area in acres:

______________________________________

4. Which area of Haryana is the SEZ being developed a. Gurgaon b. Sonepat c. Panipat d. Ambala e. Palwal f. Faridabad g. Jhajjar h. Any Other (Please Specify)________________________

5. Why this location?

__________________________________________________________________

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__________________________________________________________________ __________________________________________________________________

6. Has the principal approval been taken from the Central Government?

a. Yes b. No

7. If yes, how much land has been acquired till date?

______________________________________(Approx.) in percentage

8. What in your view would be the future of the SEZ market in Haryana? a. Positive b. Negative

9. Whom do you find to be your major competitor?

a. Uppal Developer Pvt. Ltd. b. DLF Limited c. Ansal Properties and Infrastructure Ltd d. Suncity Haryana SEZ Developer Pvt. Ltd. e. D.S. Constructions Ltd. f. Raheja Haryana SEZ Developers Pvt. Ltd. g. Emaar MGF Land Pvt. Ltd. h. Reliance Industries Ltd. i. Unitech Haryana SEZ Ltd. j. Any other (Please Specify)_____________________________________________

10. According to you what is your strength which makes you ahead of your competitors?

____________________________________________________________________________________________________________________________________________________________

11. What are your plans for the Non Processing Zone?

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

12. What would be your Strategy to persuade/attract clients to your SEZ once it is completed?

______________________________________________________________________________

______________________________________________________________________________

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______________________________________________________________________________

______________________________________________________________________________

13. At present do you have some clients?

a. Yes

b. No

14. What would be your business model for the next one year?

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

15. Any plans for power management and water supply?

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

Name of Head: __________________________________ Contact info: __________________________________ __________________________________

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Annexure‐II In‐principle Approval

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Formal Approval

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Notifications

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Annexure‐III FAQ: Special Economic Zone (SEZ) Who can set up SEZs? Any private/public/joint sector or State Government or its agencies can set up Special Economic Zone (SEZ). Can Foreign Companies set up SEZs ? Yes How can one apply for setting up of SEZs ? 15 copies of application, indicating name and address of the applicant, status of the promoter along with a project report covering the following particulars may be submitted to the Chief Secretary of the State:

• Location of the proposed Zone with details of existing infrastructure and that proposed to be established;

• Its area, distance from the nearest sea port / airport / rail / road head etc. • Financial details, including investment proposed, mode of financing and viability of the project. • Details of foreign equity and repatriation of dividends etc., if any • Whether the Zone will allow only certain specific industries or will be a multi‐product Zone.

The State Government shall, forward it along with their commitment to the following to the Department of Commerce, Government of India:

• That area incorporated in the proposed Special Economic Zone is free from environmental restrictions;

• That water, electricity and other services would be provided as required; • That the units would be given full exemption in electricity duty and tax on sale of electricity for

self generated and purchased power; • To allow generation, transmission and distribution of power within SEZ; • To exempt from State sales tax, octroi, mandi tax, turnover tax and any other duty/cess or levies

on the supply of goods from Domestic Tariff Area to SEZ units; • That for units inside the Zone, the powers under the Industrial Disputes Act and other related

labour Acts would be delegated to the Development Commissioner and that the units will be declared as a Public Utility Service under Industrial Disputes Act.

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• That single point clearances system and minimum inspections requirement under State Laws/Rules would be provided.

The proposal incorporating the commitments of the State Government will be considered by an Inter‐Ministerial Committee in the Department of Commerce. On acceptance of the proposal, a letter of permission will be issued to the applicant. Are there any terms & conditions for setting up of SEZ ? Only units approved under SEZ scheme would be permitted to be located in SEZ. The SEZ units shall abide by local laws, rules, regulations or bye‐laws in regard to area planning, sewerage disposal, pollution control and the like. They shall also comply with industrial and labour laws as may be locally applicable. Such SEZ shall make security arrangements to fulfill all the requirements of the laws, rules and procedures applicable to such SEZ. The SEZ should have a minimum area of 1000 hectares and at least 25 % of the area is to be earmarked for developing industrial area for setting up of units. Minimum area of 1000 hectares will not be applicable to product specific and port/airport based SEZs. Wherever the SEZs are landlocked, an Inland Container Depot (ICD) will be an integral part of SEZs. Detailed guidelines on setting up of SEZ in the Private/Joint/State Sector is given in Appendix 14‐II.N of Handbook of Procedures Volume I. What is role of State Governments? State Governments will have a very important role to play in the establishment of SEZ. Representative of the State Government, who is a member of the Inter‐Ministerial Committee on private SEZ, is consulted while considering the proposal. Before recommending any proposals to the Ministry of Commerce & Industry (Department of Commerce), the States must satisfy themselves that they are in a position to supply basic inputs like water, electricity, etc.

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What are the facilities Incentive/ Facilities to SEZ Developer? 100% FDI allowed for: (a) townships with residential, educational and recreational facilities on a case to case basis, (b) franchise for basic telephone service in SEZ.

• Income Tax benefit under (80 IA) to developers for any block of 10 years in 15 years. • Duty free import/domestic procurement of goods for development, operation and maintenance

of SEZs • Exemption from Service Tax /CST. • Income of infrastructure capital fund/co. from investment in SEZ exempt from Income Tax • Investment made by individuals etc in a SEZ co also eligible for exemption u/s 88 of IT Act • Developer permitted to transfer infrastructure facility for operation and maintenance. • Generation, transmission and distribution of power in SEZs allowed • Full freedom in allocation of space and built up area to approved SEZ units on commercial basis. • Authorised to provide and maintain service like water, electricity, security, restaurants and

recreation centres on commercial lines.

How to set up a unit in SEZ? For setting up a manufacturing, trading or service units in SEZ, 3 copies of project proposal in the format prescribed at Appendix 14‐IA of the Handbook of Procedures, Vol.1 to be submitted to the Development Commissioner of the SEZ. What is the approval mechanism for the units? All approvals to be given by the Unit Approval Committee headed by the Development Commissioner. Clearance from the Department of Policy and Promotion/Board of Approvals, wherever required will be obtained by the Development Commissioner, before the Letter of Intent is issued. What is the obligation of the Unit under the Scheme? SEZ units have to achieve positive net foreign exchange earning as per the formula given in paragraph Appendix 14‐II (para 12.1) of Handbook of Procedures, Vol.1. For this purpose, a Legal Undertaking is required to be executed by the unit with the Development Commissioner. The units have to provide periodic reports to the Development Commissioner and Zone Customs as provided in Appendix 14‐I F of the Handbook of Procedures, Vol.1. The units are also to execute a bond with the Zone Customs for their operation in the SEZ.

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Any company set up with FDI has to be incorporated under the Indian Companies Act with the Registrar of Companies for undertaking Indian operations. What are the incentive/facilities available for SEZ units? Following incentive/ facilities to SEZ enterprises: Customs and Excise: SEZ units may import or procure from the domestic sources, duty free, all their requirements of capital goods, raw materials, consumables, spares, packing materials, office equipment, DG sets etc. for implementation of their project in the Zone without any licence or specific approval. Duty free import/domestic procurement of goods for setting up of SEZ units. Goods imported/procured locally duty free could be utilised over the approval period of 5 years. Domestic sales by SEZ units will now be exempt from SAD. Domestic sale of finished products, by‐products on payment of applicable Custom duty. Domestic sale rejects and waste and scrap on payment of applicable Custom duty on the transaction value. Income tax: Physical export benefit 100% IT exemption (10A) for first 5 years and 50% for 2 years thereafter. Reinvestment allowance to the extend of 50% of ploughed back profits Carry forward of losses Foreign Direct Investment: 100% foreign direct investment is under the automatic route is allowed in manufacturing sector in SEZ units except arms and ammunition, explosive, atomic substance, narcotics and hazardous chemicals, distillation and brewing of alcoholic drinks and cigarettes , cigars and manufactured tobacco substitutes.

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No cap on foreign investments for SSI reserved items. Banking/Insurance/External Commercial Borrowings: Setting up Off‐shore Banking Units allowed in SEZs. OBU's allowed 100% Income Tax exemption on profit for 3 years and 50 % for next two years. External commercial borrowings by units up to $ 500 million a year allowed without any maturity restrictions. Freedom to bring in export proceeds without any time limit. Flexibility to keep 100% of export proceeds in EEFC account. Freedom to make overseas investment from it. Commodity hedging permitted. Exemption from interest rate surcharge on import finance. SEZ units allowed to 'write‐off' unrealized export bills. Central Sales Tax Act: Exemption to sales made from Domestic Tariff Area to SEZ units. Income Tax Act: Service Tax: Exemption from Service Tax to SEZ units Environment: SEZs permitted to have non‐polluting industries in IT and facilities like golf courses, desalination plants, hotels and non‐polluting service industries in the Coastal Regulation Zone area Exemption from public hearing under Environment Impact Assessment Notification Companies Act:

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Enhanced limit of Rs. 2.4 Crores per annum allowed for managerial remuneration Agreement to opening of Regional office of Registrar of Companies in SEZs. Exemption from requirement of domicile in India for 12 months prior to appointment as Director. Drugs and Cosmetics: Exemption from port restriction under Drugs & Cosmetics Rules. Sub‐Contracting/Contract Farming: SEZ units may sub‐contract part of production or production process through units in the Domestic Tariff Area or through other EOU/SEZ units SEZ units may also sub‐contract part of their production process abroad. Agriculture/Horticulture processing SEZ units allowed providing inputs and equipments to contract farmers in DTA to promote production of goods as per the requirement of importing countries. Whether SEZs have been exempted from Labour laws? Normal Labour Laws are applicable to SEZs, which are enforced by the respective state Governments. The state Government has been requested to simplify the procedures/returns and for introduction of a single window clearance mechanism by delegating appropriate powers to Development Commissioners of SEZs. What are the facilities for Domestic suppliers to Special Economic Zone Supplies from Domestic Tariff Area (DTA) to SEZ to be treated as physical export. DTA supplier would be entitled to:

• Drawback/DEPB • CST Exemption • Exemption from State Levies • Discharge of EP if any on the suppliers • Income Tax benefits as applicable to physical export under section 80 HHC of the Income Tax

Act.

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Who monitor the functioning of the units in SEZ? Performance of the SEZ units monitored by a Unit Approval Committee consisting of Development Commissioner, Custom and representative of State Govt. on annual basis. Are SEZ's controlled by Government? In all SEZ’s, the statutory functions are controlled by the Government. Government also controls the operation and maintenance function in the 7 Central Government controlled SEZs. In rest of the operation and maintenance are privatised. What are the special features if we come to the zone? The units would be entitled for a package of Incentives and a simplified operating environment. What about the Licenses for Imports? No License is required for imports, including second hand machineries. If one buy goods from DTA should they require paying State Sales Tax and Excise? No. State has exempted the sales from DTA to SEZ from local levies and taxes. What is the practical role of Development Commissioner? Development Commissioner is the nodal officer for SEZs and help in resolution of problem, if any, faced by the units/developer. Routine examination of goods by customs in the EOU is common. Will the same practice continue at the SEZ? Customs examination is to the bear minimum. SEZ units function on self certification basis. What are the provisions relating to External Commercial Borrowing (ECB) in SEZ? External commercial borrowings by units up to $ 500 million a year allowed without any maturity restrictions For details please see guidelines issued by RBI (F.No. 4(2)/2002‐ECB, dated 15.9.2002).

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Will it be possible to supply to other units in SEZ? Yes. Inter Unit Sales are permitted as per the Policy. Buyer procuring from another unit pays in Foreign Exchange.

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Annexure‐IV

Glossary

Applicant ‐The person on whose behalf the application is made and shall, wherever the context so requires, include the person signing the application.

BOA ‐The Board of Approval as notified by the Department of Commerce

Capital Goods ‐Any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernisation, technological upgradation or expansion. Capital goods also include packaging machinery and equipment, refractories for initial lining, refrigeration equipment, power generating sets, machine tools, catalysts for initial charge, equipment and instruments for testing, research and development, quality and pollution control. Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in the services sector.

Competent Authority ‐An authority competent to exercise any power or to discharge any duty or function under the Act or the Rules and Orders made thereunder or under this Policy.

Component ‐One of the parts of a sub‐assembly or assembly of which a manufactured product is made up and into which it may be resolved. A component includes an accessory or attachment to the component.

Consumables ‐any item, which participates in or is required for a manufacturing process, but does not necessarily, form part of the end‐product. Items, which are substantially or totally consumed during a manufacturing process, will be deemed to be consumables.

Consumer Goods‐Any consumption goods, which can directly satisfy human needs without further processing and includes consumer durables and accessories thereof.

Counter Trade ‐Any arrangement under which exports/imports from/to India are balanced either by direct imports/exports from the importing/exporting country or through a third country under a Trade Agreement or otherwise. Exports/Imports under Counter Trade may be carried out through Escrow Account, Buy Back arrangements, Barter trade or any similar arrangement. The balancing of exports and imports could wholly or partly be in cash, goods and/or services.

Developer ‐A person or body of persons, company, firm and such other private or government undertaking, who develops, builds, designs , organises, promotes, finances, operates, maintain or manages a part or whole of the infrastructure and other facilities in the Special Economic Zones as approved by the central Government.

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Development Commissioner ‐The Development Commissioner of the Special Economic Zone.

DFRC ‐ Duty Free Replenishment Certificate.

Domestic Tariff Area ‐ Area within India which is outside the Special Economic Zones.

Drawback ‐Relation to any goods manufactured in India and exported, means the rebate of duty chargeable on any imported material or excisable material used in the manufacture of such goods in India. The goods include imported spares, if supplied with capital goods manufactured in India.

EHTP ‐Electronic Hardware Technology Park.

EOU ‐ Export Oriented Unit.

Excisable goods ‐ Any goods produced or manufactured in India and subject to a duty of excise under the Central Excise and Salt Act 1944 (1 of 1944).

Exporter ‐ A person who exports or intends to export and holds an Importer‐Exporter Code number unless otherwise specifically exempted.

Export Obligation ‐ The obligation to export the product or products covered by the licence or permission in terms of quantity, value or both, as may be prescribed or specified by the licensing or competent authority.

Handbook (Vol.1) ‐ The Handbook of Procedures (Vol.1) and "Handbook (Vol.2)" means Handbook of Procedures (Vol.2) published under the provisions of the paragraph 2.4 of the Policy.

Importer ‐ A person who imports or intends to import and holds an Importer‐Exporter Code number unless otherwise specifically exempted.

Infrastructure facilities ‐ Industrial, commercial and social infrastructure or any other facility for the development of the Special Economic Zone as notified.

ITC (HS) ‐ ITC (HS) Classifications of Export and Import Items Book.

Jobbing‐ Processing or working upon of raw materials or semi‐finished goods supplied to the job worker so as to complete a part or whole of the process resulting in the manufacture or finishing of an article or any operation which is essential for the aforesaid process.

Licensing Authority ‐ The authority competent to grant a licence under the Act/Order.

Licensing Year ‐ The period beginning on the 1st April of a year and ending on the 31st March of the following year.

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Manufacture ‐ To make, produce, fabricate, assemble, process or bring into existence, by hand or by machine, a new product having a distinctive name, character or use and shall include processes such as refrigeration, re‐packing, polishing, labeling. Re‐conditioning repair, remaking, refurbishing, testing calibration, re‐engineering. Manufacture, for the purpose of this Policy, shall also include agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture, viticulture and mining.

Manufacturer Exporter ‐ A person who exports goods manufactured by him or intends to export such goods.

MAI‐ Market Access Initiative

Merchant Exporter ‐ A person engaged in trading activity and exporting or intending to export goods.

NFEP ‐ Net Foreign Exchange Earning as a percentage of exports.

Notification ‐ A notification published in the Official Gazette.

Order ‐ An Order made by the Central Government under the Act.

Part ‐ An element of a sub‐assembly or assembly not normally useful by itself and not amenable to further disassembly for maintenance purposes. A part may be a component or an accessory.

Person ‐ An individual, firm, society, company, corporation or any other legal person.

Policy ‐ The Export and Import Policy, 2002‐07 as amended from time to time.

Prescribed ‐ Prescribed under the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992) or the Rules or Orders made thereunder or under this Policy.

Public Notice ‐ A notice published under the provisions of paragraph 2.4 of the Policy.

Raw material –

i. basic materials which are needed for the manufacture of goods, but which are still in a raw, natural, unrefined or unmanufactured state; and

ii. For a manufacturer, any materials or goods which are required for his manufacturing process, whether they have actually been previously manufactured or are processed or are still in a raw or natural state.

Registration‐Cum‐Membership Certificate ‐ (RCMC) means the certificate of registration and membership granted by an Export Promotion Council or other competent authority as prescribed in the Policy or Handbook (Vol.1).

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Rules ‐ Rules made by the Central Government under Section 19 of the Act.

Services ‐ All the tradable services covered under General Agreement on Trade in Services and earning free foreign exchange.

Service Provider ‐ A person providing:

(i) Supply of a ‘service’ from India to any other country;

(ii) Supply of a ‘service’ from India to the service consumer of any other country in India; and

(iii) Supply of a ‘service’ from India through commercial or physical presence in the territory of any other country.

(iv) Supply of a ‘service’ in India relating to exports paid in free foreign exchange.

SEZ ‐ Special Economic Zone notified by the Ministry of Commerce & Industry, Department of Commerce.

Ships ‐ All types of vessels used for sea borne trade or coastal trade and shall include second hand vessels.

SION ‐ Standard Input Output Norms notified by DGFT in the Handbook (Vol.2), 2002‐07/approved by Board of Approval.

Spares ‐ A part or a sub‐assembly or assembly for substitution, that is ready to replace an identical or similar part or sub‐assembly or assembly. Spares include a component or an accessory.Specified‐ Specified by or under the provisions of this Policy.

Status holder ‐ An exporter recognized as "Export House/Trading House by DGFT/ Development Commissioner or Star Trading House/ Super Star Trading House" by the Director General of Foreign Trade.

STP‐ Software Technology Park

Third‐party exports ‐ Exports made by an exporter or manufacturer on behalf of another exporter(s). In such cases, shipping bills shall indicate the name of both the exporter/manufacturer and exporter(s).

Unit Approval Committee ‐ The Committee notified for Special Economic Zones to consider proposals on matters relating to Special Economic Zone unit under its jurisdiction.

Wild Animal‐ Any wild animal as defined in Section 2(36) of the Wildlife (Protection) Act, 1972.

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Zone Development Board‐ The Zone Development Board notified for Special Economic Zones to consider matters relating to development, operation and maintenance of SEZs.

Report - SEZs Haryana

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