Special Economic Zones (Amendment) Rules, 2025 — Semiconductor & Electronics Boost
Department of Commerce notified SEZ Amendment Rules on 3 June 2025 (G.S.R. 364(E)) reducing land requirements and easing norms for semiconductor manufacturing in SEZs. Key Points: • Minimum land for semiconductor/electronics SEZ reduced from 50 to 10 hectares • Applies to: semiconductors, display modules, PCBs, Li-ion cells, mobile/IT hardware • Rule 7: Board of Approval can relax encumbrance-free land requirement for govt-leased land • Rule 53: Free-of-cost goods included in NFE calculations via customs valuation • Rule 18: Semiconductor units in SEZ may supply domestically after paying duties • Supports Micron (Sanand, Gujarat): ₹13,000 crore, 37.64 hectares • Supports Aequs Group (Dharwad, Karnataka): ₹100 crore, 11.55 hectares • Aligns with India Semiconductor Mission goals
- SEZ Amendment Rules 2025 notified on 3 June 2025 reducing minimum land for semiconductor/electronics SEZ from 50 to 10 hectares
- Applies to semiconductors, display modules, PCBs, Li-ion cells, mobile and IT hardware manufacturing in SEZs
- Rule 7: Board of Approval can relax encumbrance-free land requirement for government-leased land
- Rule 53: Free-of-cost goods included in Net Foreign Exchange (NFE) calculations via customs valuation
- Rule 18: Semiconductor units in SEZ may supply domestically after paying applicable duties
- Supports Micron (Sanand, Gujarat: ₹13,000 crore, 37.64 hectares) and Aequs Group (Dharwad, Karnataka: ₹100 crore); aligns with India Semiconductor Mission
What are the SEZ (Amendment) Rules, 2025?
The Department of Commerce notified SEZ Amendment Rules on 3 June 2025 (G.S.R. 364(E)) to reduce land requirements and ease norms for semiconductor and electronics manufacturing inside Special Economic Zones.
How has minimum land requirement changed for semiconductor SEZs?
The minimum land requirement for semiconductor and electronics SEZs has been reduced from 50 hectares to 10 hectares under the 2025 amendment, making such zones more viable.
Which sectors do the SEZ Amendment Rules, 2025 cover?
The amendments apply to semiconductors, display modules, PCBs, Li-ion cells and mobile/IT hardware manufacturing. The changes align with the India Semiconductor Mission goals.
What changes did Rule 7, Rule 53 and Rule 18 introduce?
Rule 7 lets the Board of Approval relax the encumbrance-free land requirement for government-leased land. Rule 53 includes free-of-cost goods in NFE via customs valuation. Rule 18 lets SEZ semiconductor units supply domestically after paying duties.
Which projects do the SEZ Amendment Rules, 2025 support?
The amendments support Micron at Sanand, Gujarat with Rs 13,000 crore investment over 37.64 hectares and Aequs Group at Dharwad, Karnataka with Rs 100 crore over 11.55 hectares.
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