How Will the Modification of SEZ Rules Benefit Indian Real Estate?

In terms of economic activity, the development of business and service centres that are more inclusive will free up regions that are not in demand. The government's initiative to overhaul special economic zones (SEZs) would reignite interest in the business hubs and make them more inclusive. Economic activity and real estate values in these areas are high, according to analysts.

A draught bill to transform SEZs into business and service development zones. Hubs (DESH) is anticipated to undergo a modest level of partial denotification in order to 

free up regions that are not in demand. Additionally, it has been recommended that a services hub's built-up area is not have to be contiguous, which would be 

appreciated by information technology SEZs seeking partial denotification of unoccupied sites.

Following the implementation of the Sunset clause, the future of SEZs, some of which occupied excellent real land, was questionable, has become slightly less appealing.

The DESH Act is a relief for these developers: In addition, the measure intends to impose minimal regulatory limits on SEZ occupants. The type of business done inside SEZs should be liberalised.

In recent years, vacancies have increased in IT SEZs, according to Saraf, and the Bill might help revitalise this area once again.

The bill or revisions to SEZ regulations let local companies to operate inside these economic centres. Numerous Indian corporations operating smaller complexes may relocate here. SEZ vacancies will be filled as IT firms would be permitted to conduct export and domestic activities from there.

The Ministry of Commerce and Industry had began the process of  streamlining the de-notification of vacant premises over 100 million square feet. 30,000 crore rupees worth of built-up space throughout more than 250 SEZs in the nation, so that these no-longer-needed regions may be utilised for industrial or other uses.

The present demand is trending heavily toward grade A, and regardless of the openings, grade A positions will be at the top of the stack." The DESH Bill will make it possible for additional technology enterprises to coexist in an existing robust SEZ-specific environment.

In addition, the bill proposes the construction of an integrated single-window clearing process for the granting of time-bound permissions for the formation and operation of these hubs, including the use of a single application form and return.

The Gujarat International Finance Tee-City was India's first operational smart city and International Financial Services Centre (IFSC) (GIFT City) had obtained dual-use authorization, allowing developers to provide space to organisations that do not operate inside the SEZ.

GIFT City is the first SEZ in the nation to have the required clearances from the SEZ Board, the government of Gujarat, and the board of approvals (BoA), which comes under the ministry of commerce.

SEZs are often divided into two sections: the processing area and the non-processing area. SEZ units do the majority of their activity in the processing area, while the 

non-processing area is used for housing, schools, universities, social, institutional, and post office activities.

With this dual use permission, the non-processing area will be separated into two distinct zones - one in which the social or commercial infrastructure and other amenities may be utilised by both SEZ and domestic tariff area companies under the dual use, and the other to be used solely by SEZ units.