Davies gazettes draft regs for SEZ Act
8 Aug 2018 - by
Trade and Industry minister, Rob Davies, has gazetted the draft regulations on special economic zones (SEZ), and has called for the public to make comments by 14 September.
The draft regulations under the SEZ Act are aimed at including regulations relating to the licensing of SEZ entities and operators in cases where they are either separate – where a private company has been appointed to operate the SEZ – or exist under the same banner.
It also replaces the old framework for industrial development zones (IDZs) based on the IDZ regulations.
According to Davies, the most significant sections impacting on this transition is section 25 of the Act, which allows for the establishment of an SEZ entity where previously, under IDZ regulations, IDZ applicants were issued with IDZ operator permits effectively making them SEZ entities and operators at the same time.
He pointed out that the SEZ Act would now require a new entity with a board to manage a state-owned entity while an operator would have its own board.
“The introduction of the SEZ entity in addition to the SEZ operator has in some instances resulted in more implementation complexities,” said Davies. “In terms of the current arrangements, the licensee or the SEZ applicant must establish or appoint an existing state-owned company as an SEZ entity with its own boards to manage the SEZ, [and] also appoint an operator to develop and manage the same zone.”