Preliminary No. Leg.10/2006

Haryana Act No. 9 of 2006

[Dated 23rd January, 2006]

Haryana Government, Legislature Department

The following Act of the Legislature of the State of Haryana received the assent of the Governor of Haryana on the 17th January, 2006, and is hereby published for general information :-

An Act to set up Special Economic Zones to promote and establish large self-contained industrial townships, with world class infrastructure, to accelerate and facilitate both public and private sector participation in an internationally competitive and hassle free environment for export promotion thereby securing large dividends in terms of economic and industrial development and to act as strong catalytic of regional development in the State.

Be it enacted by the Legislature of the State Haryana in the Fifty-sixth Year of the Republic of India as follows :-

Chapter.I Preliminary

S.1 Short title, extent and commencement

(1) This Act may be called the Haryana Special Economic Zone Act, 2005.

(2) It extends to the whole of the State of Haryana.

(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

S.2 Definition

(1) In this Act, unless the context otherwise requires, -

(a) "amenities" means and includes roads, water supply, street lighting, power supply, sewerage, drainage, public works, tourist spots, open spaces, parks, landscaping and play fields and such other conveniences, as the State Government may, by notification, specify to be an amenity for the purpose of this Act;

(b) "Appendix" means Appendix appended to this Act;

(c) "building" means and includes, -

(i) a house, out-home factory, offices/buildings relating to information technology, health, education, research and other social infrastructure, stable, godown, shed, hut-wall and any other structure whether of masonry, bricks, mud, wood, metal or any other material whatsoever;

(ii) a structure on wheels or simply resting on the ground without foundations;

(iii) a shop, vessel, boat, t

Chapter.II Constitution of Committees and Special Economic Zone

S.3 Constitution and functions of project evaluation committee

(1) The Government shall by notification in the Official Gazette, constitute, for the purposes of this Act, a committee to be called project evaluation committee.

(2) The project evaluation committee shall consist of -

S.5 Notification of Special Economic Zone

The Government shall notify in the Official Gazette the boundaries and extent of area of the Special Economic Zone after receiving approval as specified in clause (b) of sub-section (4) of Section 4.

Chapter.III Procedure to apply for project approval

S.6 Processing and disposal of application for approval of Developer

(1) A Developer shall identify the area for the development of Special Economic Zone and apply in Appendix A (20 copies) to the Director, Industries and Commerce Department, Haryana, Chandigarh. The project inter alia shall contain the prefeasbility report, phased development components of the Special Economic Zone and the objects to be achieved.

(2) The Director, Industries and Commerce Department, Haryana, on receipt of application shall forward the proposal to the concerned department for comments.

(3) The project evaluation committee shall consider the comments received from the concerned departments and shall examine the viability and other economic indicators of the project justify the necessity of setting up of the proposed Special Economic Zone.

(4) The recommendations of the project evaluation committee shall be sent to the project approval committee.

(5) The project appr

S.7 Land for Special Economic Zone

(1) The Government may transfer land owned, acquired or controlled by it to the Developer as per provisions of the Land Acquisition Act, 1894 (1 of 1894), and the rules made thereunder and as per State Government policy.

(2) The Developer may acquire land independently from private parties by purchase, lease or otherwise.

S.8 Duties, functions and powers of Developer

(1) Subject to the provisions of this Act, the Developer shall have the duty to secure planned development of the Special Economic Zone and provide for the establishment, construction, installation, operation, maintenance and management of the infrastructure and amenities in the zone.

(2) Without prejudice to the generality of the provisions contained in sub- section (1), the Developer shall exercise and perform the following powers and functions, namely :-

(a) to prepare a development plan of the Special Economic Zone in conformity with the rules framed under this Act or adhered to by the Developer under sub-section (3) or as may be adopted by the Government under sub-section (4) of Section 17 and to implement such plan after obtaining the approval of the Approval Committee;

(b) to demarcate and develop sites for industrial, commercial including Free Trade and Warehousing Zone, residential and other p

S.9 Provision for infrastructure or amenity by Developer

(1) the Developer may engage an off-zone supplier, operator, or any other person for the purposes of providing infrastructure or amenity.

(2) Where any infrastructure or amenity is provided, the Developer shall have the power to levy charges for the use of service so provided.

(3) The Developer may delegate the power of collection of the charges for the use of services to the agency providing the infrastructure or amenity.

S.10 Generation and supply of electricity

(1)(a) The Developer or the Co- Developer shall be permitted to generate electricity in or outside the Special Economic Zone for consumption in the Special Economic Zone.

(b) Units located in the Special Economic Zone, individually or in groups shall be permitted to generate electricity in or outside the Special Economic Zone for self-consumption.

(c) Units located in the Special Economic Zone, individually or in groups shall be permitted to avail of supply of electricity by sourcing it through open access from generators directly and wheel electricity to the Special Economic Zone for consumption, subject to such payment as may be required for open access and wheeling of electricity.

(2) Groups of units in the Special Economic Zone will be considered a separate class of consumer and shall be permitted to avail supply of electricity at a determined tariff from the existing licensee.

(1) The following shall be exempt from payment of any tax, duty, fees, cess or any other levies under any existing State law, namely :-

(i) any goods exported out of or imported into the Special Economic Zone;

(ii) inter-unit transaction of goods with the Special Economic Zone;

(iii) goods from the Special Economic Zone sent for value addition to the domestic tariff area and returned to the Special Economic Zone thereafter; and

(iv) services that provide value addition to a product within the Special Economic Zone.

(2) All transactions and transfers of immovable property or documents related thereto within the Special Economic Zone shall be exempted from stamp duty.

Chapter.VI Powers and Functions or Development Commissioner

S.12 Powers and functions of Development Commissioner

(1) The Development Commission shall supervise, oversee and coordinate the activities of agencies engaged in the development of the Special Economic Zone and may exercise all powers and functions as may from time to time be vested in him by the Central Government or the State Government.

(2) Notwithstanding anything contained in any existing State law, the Development Commissioner shall exercise the following powers for the grant of approvals/sanctions to the entrepreneur, so as to provide for a single window clearance system in the Special Economic Zone, namely :-

(a) the powers of the Labour Commissioner and Chief Inspector of Factories in respect of labour laws;

(b) the powers of the Haryana Pollution Control Board with regard to no objection certificate and consent under the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974) and the Air (Prevention and control of Pollution) Act, 1981

Chapter.VII Miscellaneous

S.13 Act to override other laws

Notwithstanding the provisions contained in the existing State Law governing the use of the land and building, amenities, utilities, supplies and any other activity, the provisions of this Act shall prevail.

S.14 Control of Government

The Development Commissioner shall carry out such directions as may be issued to him from time to time by the Government for the efficient administration of this Act :

Provided that the Development Commissioner shall keep informed about the progress of the approved project at such intervals as may be directed by the Government.

S.15 Protection of action taken in good faith

No suit, protection or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or rules made thereunder.

S.16 Power to remove difficulties

(1) If any difficulty arises in giving effect to the provisions of this Act, the Government may, by notification, make such order, not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for the removal of difficulty :

Provided that no such order shall be made after the expiration of two years from the date of coming into force of this Act.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before the House of the State Legislature.

S.17 Power to make rules

(1) The State Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.

(2) Every rule made under this Act shall be laid, as soon as may be, after it is made, before the House of the State Legislature, while it is in session, if the House agrees in making any modification in the rule or the House agrees that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

(3) Wherever a Special Economic Zone is approved in the controlled areas, the Government may direct the Developer to adhere to the provisions of building rules framed under the Punjab Scheduled Roads and Controlled Areas Restriction of Unregulated Development Act, 1963 (41 of 1963).

Development Commissioner may make regulations not inconsistent with this Act and the rules made thereunder for the purpose of giving effect to the provisions of this Act.

S.19 Saving of operation of other laws

Nothing in this Act shall affect, -

(i) any right, privilege, obligation or liability acquired, accrued or incurred under any other law;

(ii) any penalty, forfeiture, or punishment incurred under any other law;

(iii) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation or liability; and

any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such penalty, forfeiture or punishment may be imposed, as if this Act had not been passed.

Appendix.A .

{see Section 6(1)}

To

The Director,

Industries and Commerce Department, Haryana,

Chandigarh.,

Subject :- Application for setting up Special Economic Zone.