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Special Investment Regions (SIR)

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Revision as of 12:44, 7 August 2013

Special Investment Region (SIR) is a concept similar to Special Economic Zone. However, this is a unique term applied in the territory of one of the states in India called Gujarat.

The Gujarat government has enacted a legal framework for the SIR – The Gujarat Special Investment Region Act – 2009(GSIR -2009) which has come into effect from 6th January, 2009.

SIR refers to an existing or proposed Investment Region with an area of more than 100 sq. Kms or Industrial Area with an area of 50-100 sq. Kms declared so by the Government of Gujarat under Section 3 of the Gujarat Special Investment Region Act – 2009 as a SIR to set up world class hubs of economic activity.

By giving SIR status, Gujarat Government proposes to develop the investment region /industrial area as global hubs of economic activity supported by world class infrastructure, premium civic amenities, centers of excellence and proactive policy framework.

Here "Economic Activity" is defined in the GSIR Act to mean the activities and services including but not limited to industrial, manufacturing, commercial, financial, processing, packaging, logistics, transport, tourism, hospitality, health, housing, entertainment, research and development, education and training, information and communication, management and consultancy, corporate offices and the activities and services connected therewith or incidental thereto and other economic activities as the Apex Authority may specify;

While Special Economic Zones are primarily developed by private parties, the Gujarat Government may set up or designate Government agencies including companies formed under the Companies Act, 1956 as the project development agencies and assign them the powers and functions relating to project Development of a Special Investment Region.

Only Gujarat Government is empowered to establish, develop, operate and regulate the Special Investment Regions (SIR).

A four tier administrative mechanism is set up for establishment, operation, regulation and management of the SIRs. The administrative mechanism comprises of an Apex Authority -the highest policy making body (Gujarat Infrastructure Development Board -GIDB), a Regional Development Authority (RDA) for each SIR, a Project Development Agency (Government has already formed such a project development company in the name of “Gujarat Industrial Corridor Company” (GICC)) and project specific special purpose vehicle (SPVs).

The Apex Authority will be the single window system and the first contact for setting up any economic activity or amenity in the SIR. The RDA will look after the ground level issue of development & regulation; The RDA will make its own regulations for building, construction and development.

The SIR boundary declared under the GSIR Act, except the village site area (gamtal) of a Village Panchayat, Municipal area and Municipal Corporation area declared under the provisions of respective State laws, would not be under the jurisdiction of a local authority to the extent it relates to the provisions made in the GSIR Act.

The area within the SIR Boundary except the village site area (gamtal) of a Village Panchayat, Municipal area and Municipal Corporation area shall be deemed to be an industrial township within the meaning of the provisions of clause (1) of article 243Q of the Constitution of India from the date it is so notified in the Official Gazette by the State Government. Subject to the prior permission and any general or special orders which the State Government may make in this behalf, the RDA may act as the authority for taking decisions and steps in for assessment, imposition and recovery of taxes.

Units set up in a Special Economic Zone and falling in the Special Investment Region will continue to be governed by and shall have the benefits under the Gujarat Special Economic Zone Act, 2004.

The land acquired for the purposes of a town planning scheme, development plan or an infrastructure project under GSIR Act will be deemed to be the land needed for public purpose within the meaning of the Land Acquisition Act, 1894.

An Investment Region or Industrial Area declared as a SIR may be known with the name of its location or its predominant economic activity.

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