What are the duties, powers and functions of "Board of Approval" regarding orderly development of Special Economic Zones under Special Economic Zones Act, 2005 ?

CS Executive · Economic, Business and Commercial Laws · PYQS · December 2023
What are the duties, powers and functions of "Board of Approval" regarding orderly development of Special Economic Zones under Special Economic Zones Act, 2005 ?

Answer & Explanation:

Section 9 of the Special Economic Zones Act, 2005 casts upon the Board the duty to promote and ensure orderly development of the Special Economic Zones. The powers and functions of the Board of Approval inter alia, include: granting of approval or rejecting proposal or modifying such proposals for establishment of the Special Economic Zones; granting approval of authorized operations to be carried out in the Special Economic Zones by the Developer; granting of approval to the Developer or Units (other than the Developers or the Units which are exempt from obtaining approval under any law or by the Central Government) for foreign collaborations and foreign direct investments (including investments by a person resident outside India) in the Special Economic Zone for its development, operation and maintenance; granting of approval or rejecting proposal for providing infrastructure facilities in a Special Economic Zone or modifying such proposals; granting a license, notwithstanding anything contained in the Industries (Development and Regulation) Act, 1951, to an industrial undertaking referred to in section 3(d) of Industries Development & Regulation (IDR) Act, if such undertaking is established, as a whole or part thereof, or proposed to be established, in a Special Economic Zone; Suspension of the letter of approval granted to a Developer and appointment of an Administrator under Section 10(1) of the Act; disposing of appeals preferred under Section 15(4) & Section 16(4) of the Act; Performing such other functions as may be assigned to it by the Central Government. Section 9 (3) states that the Board may, if so required for the purposes of this Act or any other law for the time being in force relating to Special Economic Zones, by notification, decide as to whether a particular activity constitutes manufacture as defined in clause (r) of section 2 and such decision of the Board shall be binding on all Ministries and Departments of the Central Government. Section 9(4) empowers the Board of Approval to delegate such powers and functions as it may deem fit to one or more Development Commissioners for effective and proper discharge of the functions of the Board. Section 9(5) stipulates that the Board shall, in exercise of its powers and performance of its functions, be bound by such directions on questions of policy, as the Central Government may give in writing to it from time to time. The decision of the Central Government whether a question is one of policy or not shall be final.

Topics: Special Economic Zones Act, 2005

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