Does Rajasthan have special law for SEZ units in Udaipur?

Detailed Legal Analysis

Yes, Rajasthan has specific regulations and provisions for Special Economic Zones (SEZ) units, including those in Udaipur, governed by both central and state laws.

The primary legislation for SEZs in India is the Special Economic Zones Act, 2005, which provides a framework for the establishment, development, and management of SEZs. In addition to this central act, the Rajasthan state government has its own policies and regulations to facilitate the functioning of SEZs within the state.

Key points regarding SEZ units in Udaipur include:

• Regulatory Framework: The SEZs in India are regulated under the SEZ Act, 2005 (No. 28 of 2005) and the SEZ Rules, 2006. These provide guidelines on the establishment of SEZs, approval processes, and operational regulations.
• State Policies: The Rajasthan government has introduced specific industrial policies, such as the Rajasthan Investment Promotion Policy, which supports SEZ units by offering incentives, subsidies, and a streamlined approval process.
• Incentives and Benefits: SEZs enjoy various benefits, including:
  • 100% income tax exemption for the first five years, 50% for the next five years, and a 50% exemption on reinvested profits for the next five years (Section 10AA of the Income Tax Act, 1961).
  • Exemption from customs duties and central excise duties.
  • Simplified procedures for exports and imports.
• Land Acquisition: Land for SEZs is acquired according to the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, ensuring fair compensation to landowners.
• Single Window Clearance: The Rajasthan government provides a single-window facility for SEZ units to obtain necessary approvals and clearances, thus expediting the setup process.

In summary, SEZ units in Udaipur are subject to the overarching SEZ Act of 2005 and are further supported by the Rajasthan state's investment policies, offering numerous benefits aimed at promoting industrial growth and economic development in the region.