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Development of Special Economic Zones: Haryana

Department of Industries and Commerce of Haryana encourages the establishment of Special Economic Zones, Technology Cities, Industrial Model Cities and Industrial Parks. This is done by encouraging public private partnership in infrastructure projects. In particular, development of industrial infrastructure with private sector participation has been emphasized. Till now, the task of development of Industrial Estates has been entrusted to Haryana State Industrial Development Corporation (HSIDC). The Salient Features of this policy are enlisted below:

General Terms & Conditions:

The following general terms and conditions shall be applicable in cases of acquisition of land for the private developer projects in private public partnership for setting up of SEZs, Technology Cities, Industrial Parks and Industrial Model Townships:

  • The developer shall pay to the Government the total cost of acquisition of land and the administrative expenses incurred for such acquisition.
  • The developer shall pay to the State Government administrative expenses @ 15% of the total cost of acquisition including enhancement except where HIPB decides to reduce or waive off such expenses as special incentive for the project.
  • The developer shall be bound to provide, to the satisfaction of the State Government, rehabilitation of population by providing built up houses or residential plots.
  • The developer shall undertake to provide essential services, like roads, street lights, drainage and sewage, drinking water supply and building of suitable medical care and schooling along with Community Centre, in the new relocated village.
  • Where relocation is not necessary but more than 25% of the total land of the village gets acquired, similar social infrastructure shall be provided.
  • The developer shall undertake to set up Skill Development Institutions to provide training to the wards of persons whose land is acquired. Such training institutes shall be fully funded and run by the developer.
  • The developer shall undertake to provide independent power plant or shall purchase power from a plant set up outside the project are or the State, to meet with power requirements of such projects.
  • The developer shall undertake to pay for the water supply.
  • The developer shall undertake to pay such external development charges provided by the Haryana Urban Development Authority or Local Body or any other State Government Department.
  • The developer shall undertake to give employment to at least one member of the family whose land is acquired for setting up the project.
  • At least 25% of people of Company should be hired from Haryana Domicile.

Location of SEZs, Industrial Parks and Technology Cities:

As the Collaboration is Public-Private Based, it is expected from the Private Firms that they will focus on the NCR region which has the locational advantage and has more Commercial Viability. But the state has to ensure the development of areas which are backward in terms of industrial development. For this the following norms are made:

  • Not more than 5 – 6 multi-product SEZs in the NCR region.
  • Not more than two Industrial Model Town Ships in the NCR region.
  • No restriction will be placed on developers who approach the State Government for assistance in land acquisition outside the NCR region.
  • State Government encourage setting up of Technology cities mainly outside the NCR region

Size of SEZs/Industrial Parks/Technology Cities:

The Private firms will be subjected to direct buying from the land owners with mutual consent. So there will be no maximum limit for the size of the project. While minimum size of the project is fixed accordingly. The details are enlisted below:

  • For Multi Project SEZs, considerations of the minimum area requirement will be of 2500 acre.
  • For Single Unit SEZs, Outside the NCR region, the State Government will assist the private sector in acquisition of land the minimum area requirement is 250 acres only.
  • The area restrictions on Industrial Parks/Industrial Model Townships within the NCR region would be 1500 acres.
  • The minimum size stipulated for technology cities is 1000 acres.
  • There is no restriction for size outside NCR region and also State Government will also assist in Land Acquisition.

Public Private Partnership:

The developer can approach HSIDC for development of SEZ, Industrial Park or Technology City in public private partnership. State Government shall assist in the acquisition of land for all such joint venture projects. In joint venture, HSIDC/State Government will have 26% or more share in equity.

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