Central Government De-notifies Area from Kakinada Special Economic Zone

The Ministry of Commerce and Industry (Department of Commerce) issued Notification S.O. 4772(E) on November 10, 2021, which was published in the Gazette on November 18, 2021. This notification formally de-notified a significant portion of land from the Multi-Product Special Economic Zone (SEZ) located in Kakinada, East Godavari District, Andhra Pradesh. The action followed a proposal from M/s. Kakinada SEZ Limited, the developer of the zone, to de-notify an area of 226.2143 hectares. The Central Government, after being satisfied that all requirements under the Special Economic Zones Act, 2005, and related provisions were fulfilled, proceeded with the de-notification. This decision was supported by the State Government of Andhra Pradesh, which provided its approval via a letter dated October 12, 2021, and was also recommended by the Development Commissioner, Visakhapatnam Special Economic Zone. The de-notification reduces the total area of the Kakinada SEZ to 1653.0930 hectares, and the specific survey numbers and corresponding areas for the de-notified land were detailed in a table appended to the notification. The legislation provided: “NOW, THEREFORE, in exercise of the powers conferred by second proviso to sub-section (1) of section 4 of the Special Economic Zones Act, 2005 and in pursuance of rule 8 of the Special Economic Zones Rules, 2006, the Central Government hereby de-notifies an area of 226.2143 hectares, thereby making resultant area as 1653.0930 hectares.”

The primary objective behind this notification was to facilitate the repurposing of the de-notified land for alternative developmental projects. The Central Government was satisfied that the de-notified land would be utilized to develop a Logistics Park and a Food Processing Park, as per the No Objection Certificate (NoC) issued by the Government of Andhra Pradesh. This move reflects the policy rationale of allowing flexibility in the utilization of land initially designated for Special Economic Zones, enabling its reallocation for other strategic industrial and infrastructure development when deemed appropriate and after due process. The earlier legal position established the entire area as part of the Multi-Product SEZ, initially notified in 2013 and subsequently modified through various notifications, including previous de-notifications in 2017 and 2018. This notification addresses the need to adjust the geographical scope of the SEZ in response to the developer's revised plans and the broader economic development goals of the region. The process underscores the statutory framework provided by the Special Economic Zones Act, 2005 (an Act to provide for the establishment, development and management of Special Economic Zones for the promotion of exports and for matters connected therewith or incidental thereto) and the Special Economic Zones Rules, 2006, which include provisions for the de-notification of SEZ areas. The notification itself serves as the enforcement mechanism, formally altering the designated area of the SEZ.

Keywords: Special Economic Zone, SEZ, De-notification, Kakinada, Andhra Pradesh, Ministry of Commerce and Industry, Logistics Park, Food Processing Park, S.O. 4772(E)

Geo Tags: India, Andhra Pradesh District: East Godavari