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BRILLIANT’S Solved Questions Papers 301

which permits a SEZ, an additional sector for each contiguous 50
hectare parcel of land. Thus, the infrastructural facilities created in
such SEZ are more efficiently used.
With the introduction of sectoral broad-banding for encompassing
related areas under the same sector, it provides more flexibility in
setting up additional units in a sector specific SEZ.
On the issues of vacancy of land, it has now being decided that
additions to the pre-existing structures (i.e. not in commercial use)
and activities being undertaken after notification would be eligible for
duty benefits similar to any other activity in SEZ.
(b) IT SEZs contributes majorly towards IT Exports, which form a very
significant part of India’s exports. During the financial year 2012-13,
IT SEZs exports have exceeded ` 1.40 lakh crore and registers a
growth of over 70% over the previous year’s exports.
There would be no minimum land requirement (which was 10 hactares
of minimum land area) from now onwards for setting up an IT/ITES
SEZ. But the minimum built up area criteria has to be met by the SEZ
developers. Although this criterion has also been relaxed with the
requirement of one lakh square meters applicable for 7 major cities,
i.e., Mumbai, Delhi (NCR), Chennai, Hyderabad, Bangalore, Pune
and Kolkata. The built-up area norm applicable for category. B cities
is 50,000 square meters and for remaining cities it is 25,000 square
meters.
(c) Now the ownership of SEZ units, including sale is permitted to
transfer.
2. Zero Duty Export Promotion Capital Goods (EPCG) Scheme
(a) Here, the Foreign Trade Policy consists of two variants, i.e. Zero
Duty EPCG for few sectors and 3% duty EPCG for all sectors. The
last announcement was on 5 June 2012, where new post export
th
EPCG scheme was also announced and was notified on 18 Feb,
th
2013, by the CBEC. Now with the requests of all stakeholders, both
these variants are harmonized in one scheme, i.e., the Zero Duty
EPCG scheme covering all sectors.
(b) The salient features of Zero-Duty EPCG scheme are as follows:
 Authorization holders consist of export obligation of 6 times the duty
saved amount. Time period of 6 years is given for the completion of
export obligation.