The Government had put in place a single legislation for establishment, development and management of the Special Economic Zones. The government of India in the ministry of Commerce & Industries enacted the Special Economic Zones Act, 2005.
Special Economic Zone are considered to be growth engines to boost manufacturing, augment exports and generate large scale employment. The unique feature of the SEZ Scheme is that an SEZ is considered to be foreign territory for the purpose of trade operations, duties and tariffs.
Supplies of goods & services into SEZ from Domestic Tariff Area (DTA) are treated as exports and goods & services coming from SEZ into DTA are to be treated as if these are being imported. Indore SEZ was notified prior to the enactment of the SEZ Act’ 2005 and became operational W.E.F. 15.08.2003.
This SEZ is the only Green Field multi product SEZ of India as on date and is spread over an area of more than 1100 hectares of land in Phase I & II . Industries of various sectors such as Plastic, Engineering, Pharmaceutical, Metal, Textile & Food processing etc. are located in the Zone. SEZ units may be set up for manufacture of goods and rendering of services, processing, assembling, trading, repair, remaking, re-conditioning, re-engineering including making of gold/platinum jewellery articles thereof or in connection therewith units for generation/distribution of power may also be setup in SEZs.
Location of Indore SEZ is suitable because it is adjacent to the Pithampur/Kheda industrial growth central complex which is incidentally one of the leading growth centers of India and is situated near the most advanced and developed industrial town i.e. Indore, the commercial capital of M.P. Indore provides all the social infrastructure, civic facilities and other benefits to the growing centers. Connectivity of Indore to all major parts of the country is also a boon to the industries.