Santacruz Electronic Export Processing Zone (SEEPZ) was set up on 1st May, 1973 as uni-product EPZ exclusively for manufacture and export of electronic items in an area of 100 acres ( which was later increase to 110 acres) of land leased through the Maharashtra Industrial Industrial Development Corporation (MIDC), Andheri (East), which over the years has become a land mark of Mumbai. The objective was of (a) accelerating the progress of electronics manufacturing in India (presumably encompassing the technology transfer objective) and (b) to take advantage of the growing electronics world market (export and foreign exchange objectives).

Considering the high potential and the pollution-free nature of Gem & Jewellery Industry, the Govt. of India decided to permit manufacture and export of Gem & Jewellery items from SEEPZ during 1987-88, which soon gave a glamorous twist to SEEPZ.

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 of attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000. SEEPZ was one of the three Export Processing Zones converted as Special Economic Zone w.e.f. 1st November, 2000.

This policy intended to make SEZs engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the Centre and the State level, with the minimum possible regulations. 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.

The main objectives of the SEZ Act are :

Generation of additional economic activity

  • Promotion of exports goods and service
  • Promotion of investment from domestic and foreign sources
  • Creation of employment opportunities
  • Development of infrastructure facilities
  • To install 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. The Special Economic Zones Act, 2005, was passed by parliament in May, 2005 and 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.
FY 2020-21 Total No. of Units
Pvt. SEZs 574
EOUs 279
Total 1,152

The SEZs located in the State of Maharashtra, Goa and Union Territory of Dadra, N. Haveli, Daman & Diu are under the jurisdiction of the Development Commissioner, SEEPZ- SEZ. The Development Commissioner, SEEPZ-SEZ is also the Zonal Development Commissioner for all SEZs in Maharashtra, Goa & UT of Daman, Diu and Dadra & Nagar Haveli.

FY 2020-21 Total No. of Units
Pvt. SEZs 574
EOUs 279
Total 1,152

Located in the heart of metropolitan Mumbai, SEEPZ-SEZ has access to Mumbai’s vast commercial, Industrial and social infrastructure, its efficient communication network, a competent ancillary base, a well developed financial and credit structure, a skilled and experienced urban work force.

SEEPZ-SEZ is just 6 kilo meters away from Mumbai’s International airport at Sahar, Mumbai sea port is 30 kilo meteres away from the zone. SEEPZ-SEZ is also well connected from various parts of city by local trains and the urban transport service.

Sprawling infrastructure of SEEPZ-SEZ is spread over 111 acres. The Zone provides necessary infrastructure for facilitation setting up of units in the Zone such as:

  • Developed Plots
  • Ready built up galas

There are 7 Standard Design Factories and 3 Gems & Jewellery Factories, 2 Towers in SEEEPZ++area & one multi-storied building Plots are leased for 30 years and built up area is leased for five years on renewable basis. Well connected network of central roads, and a Business Facilitation Centre are facility of Zone. At present, the lease rent charged for built up area is Rs. 2230/- per sq. mtr. p.a. and for plots Rs. 100/- per sq. mtr. p.a. in addition to that user charges and maintenance costs is also charged.

SEEPZ SEZ provides comprehensive services. The facilities in the Zone are as follows:-

  • Bank
  • ATM
  • Industrial Canteen
  • Telephone Exchange
  • Foreign Post Office
  • Offshore Banking Unit
  • Residential Hotel
  • Authorised Dealer of Foreign Exchange
  • Well equipped Fire Station.
  • Crèche
  • Well equipped Dispensary

As SEEPZ-SEZ is statutorily exempted from power cuts, uninterrupted power supply is guaranteed from generating stations of Western Maharashtra.

The Zone has also an assured supply of 4.6 mld. Of water a day.

SEEPZ-SEZ is a export manufacturing hub with an in-house Customs clearance facility. This enables the exporters to deliver their air and sea consignments well in time without any hassles and through simplified procedures. SEEPZ-SEZ offers unique combination of urban infrastructure, skilled labour, eco-friendly production, speedy and cost effective shipping.

SEEPZ-SEZ has a well groomed security system including a high security entrance to avoid any pilferage of duty free goods.

Supporting the philosophy of making every business process sustainable for the zone and the society at large, SEEPZ-SEZ facilities and encourages that the units within the Zone offer regular programme for skill development, to and fro transport and recreational facilities to their individual employees.

(A) Setting up of SEZ:

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 application submitted by the Developer for setting up of SEZ is scrutinised by the Development Commissioner and is forwarded to Board of Approval with the recommendation

The State Government has also to forward its recommendation within 45 days from the date of receipt of such proposal to the Board of Approval.

The Board of Approval has 19 Members. Its constitution is as follows:

1 Secretary, Department of Commerce Member
2 Member, CBEC Member
3 Member, IT, CBDT Member
4 Joint Secretary (Banking Division), Dept of Economic Affairs, Ministry of Finance Member
5 Joint Secretary (SEZ), Department of Commerce Member
6 Joint Secretary, DIPP Member
7 Joint Secretary, Ministry of Science and Technology Member
8 Joint Secretary, Ministry of Small Scaled Industries and Agro and Rural Industries Member
9 Joint Secretary, Ministry of Home Affairs Member
10 Joint Secretary, Ministry of Defence Member
11 Joint Secretary, Ministry of Environment and Forests Member
12 Joint Secretary, Ministry of Law and Justice Member
13 Joint Secretary, Ministry of Overseas Indian Affiaris Member
14 Joint Secretary, Ministry of Urban Development Member
15 A nominee of the State Government concerned Member
16 Director General of Foreign Trade of his nominee Member
17 Development Commissioner concerned Member
18 A professor in the Indian Institute of Mgmt or the Institute of Foreign Trade Member
19 A professor in the Indian Institute of Mgmt or the Institute of Foreign Trade Member

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.

  1. Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.
  2. Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act.
  3. Exemption from Central Sales Tax (CST).
  4. Exemption from Service Tax (Section 7, 26, and Second Schedule of the SEZ Act).
(B) Setting up of SEZ Units:

All the proposal for setting up of units in the SEZ are approved at the Zone level by the Approval Committee. The composition of Approval Committee is as follows:-

Development Commissioner of the SEZ Chairman ex-officio
Director or Deputy Secretary to the Govt. of India, Ministry of Commerce & Industry, Department of Commerce or his nominee not below the rank of Under Secretary to the Govt. of India Member ex-officio
Development Commissioner of the SEZ Chairman ex-officio
Joint Director General of Foreign Trade, Mumbai Member ex-officio
Commissioner of Customs or Excise having territorial jurisdiction over the SEZ or his nominee not below the rank of Joint Commissioner Member ex-officio
Commissioner of Income Tax having territorial jurisdiction over the SEZ or his nominee not below the rank of Joint Commissioner Member ex-officio
Director (Banking) in the Ministry of Finance, Banking Division, Govt. of India Member ex-officio
Two officers not below the rank of Joint Secretary, to be nominated by the Government of Maharashtra Member ex-officio
Developer of the Zone Special Invitee

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 are periodically monitored by the Approval Committee and units are liable for penal action under the Foreign Trade (Development and Regulation) Act, in case of violation of the conditions of the approval.

For details of the Government of India’s Policy relating to SEZs, please visit the website www.sezindia.nic.in www.sezindia.nic.in

The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include:

  • Duty free import/domestic procurement of all goods (except prohibited goods) for carrying out the authorized operations.
  • External commercial borrowing be SEZ units upto USD 500 million in a year without any maturity restriction, through recognized banking channels.
  • Exemption from GST on sales made from Domestic Tariff Area (DTA) to SEZs.
  • Supplies to SEZ from DTA are to be treated as exports and are eligible for all export benefit such as drawback/advance license/DFRC/DEPB.
  • SEZ units can be set up for manufacturing, trading or service activity.
  • SEZ units to be positive Net Foreign Exchange Earners.
  • Single window approval for State level clearances.
Updated On: 04-May-2023