The Ministry of Commerce has notified the Special Economic Zones (Amendment) Rules, 2025 (SEZ Rules 2025).
The amendments are expected to provide a robust push to chip manufacturing and streamline operational processes within SEZs, aligning closely with the Make in India initiative and the India Semiconductor Mission.
Semiconductor Sector Gets Special Treatment
For the first time, the rules explicitly prioritize semiconductor fabrication and assembly/testing units in SEZs. A new provision under Rule 5 ensures:
- Fast-tracked land allotment for chip manufacturing units
- Relaxed norms for processing zones
- Preferential consideration by the Board of Approval (BoA)
- Synergy with central incentives, such as the Production Linked Incentive (PLI) scheme for electronics
This strategic focus aims to catalyse India’s efforts to establish itself as a global semiconductor hub amid global supply chain shifts.
Key Changes Under SEZ (Amendment) Rules, 2025
| Area | Amendment Highlights |
| Semiconductor Units | Special provisions introduced to prioritise chip manufacturing within SEZs |
| Land Norms | Developers can now utilise up to 25% of SEZ land for non-processing purposes — up from 15% earlier |
| Land Sub-division | Permitted with government approval, enabling flexible leasing and usage models |
| Green and Blue Economy | Priority accorded to units engaged in renewable energy, hydrogen, and ocean tech |
| IT/ITES Units | Work-from-home and hybrid models allowed for export-oriented IT/ITES SEZ units |
| De-notification Process | Made faster and more transparent via single-window clearance involving state coordination |
| Compliance Simplification | Developers allowed to self-certify built-up area compliance to expedite approvals |
| Digital Interface | Strengthened online portal for processing approvals, filing reports, and unit interaction |
Land Use Norms Significantly Eased
A major highlight is the relaxation of land use restrictions for SEZ developers. The permissible limit for non-processing use — which includes residential, commercial, and social infrastructure — has been increased from 15% to 25%. This move supports the development of integrated townships within SEZs, making them more attractive for talent acquisition and long-term sustainability.
Industry experts view the amendments as a timely intervention that can boost investor confidence, facilitate ease of doing business, and lay the groundwork for India’s technological and industrial transformation.
Notification Details
Notification No. F. No. K-43022/150/2024-SEZ
Date: 3rd June, 2025
Read More: Justice Yashwant Varma Faces Impeachment Threat in Monsoon Session Over Corruption Allegations
