LexThe Indore Special Economic Zone (Special Provisions) Act 2003
Madhya Pradesh · state statute
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(State Act)
MADHYA PRADESH ACT
No. 23 of 2003
THE INDORE SPECIAL ECONOMIC ZONE
(SPECIAL PROVISIONS) ACT, 2003
PASSED BY MADHYA PRADESH VIDHAN SABHA ON 28TH MARCH, 2003
MADHYA PRADESH ACT
NO. 23 OF 2003
THE INDORE SPECIAL ECONOMIC ZONE
(SPECIAL PROVISIONS) ACT, 2003
Table of Contents
CHAPTER I
PRELIMINARY
Clauses :-
1. Short Title, extent and commencement
2. Definitions
CHAPER II
POWERS AND FUNCTIONS OF THE DEVELOPMENT COMMISSIONER
3. Powers and Functions of the Development Commissioner
4. Development Commissioner to be Chief Conciliator
5. Nomination of officers to assist the Development Commissioner
CHAPTER-III
THE DEVELOPER OF THE ZONE
6. Appointment of Developer
7. Land for the Zone
CHAPTER IV
POWERS AND FUNCTIONS OF THE DEVELOPER
8. Functions of the Developer.
9. Power of Developer in respect of land and levy of charges
10. Provision for infrastructure or amenity by Developer
11. Generation and supply of electricity
CHAPTER V
SPECIAL ECONOMIC ZONE TO BE AN
INDUSTRIAL TOWNSHIP
12. Declaration of Zone to be Industrial Township Area
CHAPTER VI
EXEMPTION FROM STATE TAXES, DUTIES,
CESS AND LEVIES
13. Exemption from State taxes, duties and cess
CHAPTER VII
MISCELLANEOUS
14. Act to override other laws
15. Protection of action taken in good faith
16. Power to remove difficulties
17. Power to make rules
18. Power to make regulations
19. Saving
MADHYA PRADESH ACT
NO. 23 OF 2003
THE INDORE SPECIAL ECONOMIC ZONE
(SPECIAL PROVISIONS) ACT, 2003
An ACT to provide for the development, operation, maintenance and administration of Indore Special
Economic Zone in the State of Madhya Pradesh and for matters connected therewith.
Be it enacted by the Madhya Pradesh Legislature in the Fifty-fourth year of the Republic of India, as
follows, -
CHAPTER I
PRELIMINARY
1. Short Title, extent and commencement
(1) This Act may be called the Indore Special Economic Zone (Special Provisions) Act, 2003
(2) It extends to the Indore Special Economic Zone.
(3) It shall come into force on such date as the State Government may, by notification
appoint.
2. Definitions - In this Act, unless the context otherwise requires:
(a) "Amenities" means all basic and essential services including roads, water supply, street
lighting, power supply, sewerage, drainage, collection, treatment and disposal of
industrial and municipal wastes, public health, education, transport, fire fighting
services, public parks, clubs, markets, shops and outlets and such other facilities or
services;
(b) "Authority" means the Authority constituted under this Act;
(c) "Co-developer" shall mean a person who has entered into an agreement with the
Developer to develop, build, design, organize, promote, finance, operate, maintain or
manage a part or whole of the infrastructure or amenity in the Zone;
(d) "Demarcation Structures" means walls, pillars or any other structures defining
boundary;
(e) "Development Commissioner" means such officer as may be notified as the
Development Commissioner for the Zone by the State Government;
(f) "Developer" means a person who develops, builds, designs, organizes, promotes,
finances, operates, maintains or manages a part or whole of the infrastructure and
provides amenities in the Zone;
(g) "Domestic Tariff Area" for the purposes of this Act shall mean the geographical area of
the state of Madhya Pradesh excluding the area of the Zone;
(h) "Infrastructure" includes industrial, commercial, social or residential infrastructure or
any facility for the development of the Special Economic Zone;
(i) "Land" means any land situated within the Zone;
(j) "Occupier" means a person who occupies a site or building within a Special Economic
Zone and includes his successors and assignees;
(k) "Off-Zone supplier" means a unit located outside the Zone, providing goods or services
or both to developer, co-developer, occupier or resident;
(l) "Operator" means a person engaged by the Developer for providing Infrastructure or
Amenity in the Zone;
(m) "Special Economic Zone" or "Zone" means the area notified as Indore Special Economic
Zone by the Central Government;
(n) "Unit" means an enterprise, or part thereof, which occupies space within the Zone for
carrying on business as approved by the Development Commissioner; and
(o) "Value Addition" includes any activity that brings about a change in an article or
articles as a result of some process, treatment, and/or labour and results in
transformation into a new and different article with enhanced value so understood in
commercial parlance and shall also include packaging.
CHAPER II
POWERS AND FUNCTIONS OF THE DEVELOPMENT COMMISSIONER
3. Powers and Functions of the Development Commissioner
(1) The Development Commissioner shall supervise, oversee and coordinate the activities
of agencies engaged in the development of the 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) Without prejudice to the provisions of sub section (1), the Development Commissioner
shall act as a single agency to grant all approvals, clearances, licences, permissions
and other authorizations as may be delegated by the State Government or its
agencies, for the establishment and operation of Units in the Zone.
(3) Notwithstanding anything contained in the Madhya Pradesh Nagar Tatha Gram Nivesh
Adhiniyam 1973 (No. 23 of 1973), the Development Commissioner shall make
regulations, with the prior approval of the State Government, with regard to town
planning and urban development including floor space index, ground coverage, green
space and other usages of land and shall approve the plan for the development of the
Zone and oversee the compliance of the approved plan.
(4) The Development Commissioner shall, -
(i) supervise and monitor compliance of conditions of licences, permissions and
clearances granted by it;
(ii) call any information required to supervise and monitor the conditions of
licence, permission or clearance from the unit; and
(iii) take appropriate action for non-compliance of any of the terms and conditions
of any license, permission or clearance so granted under the relevant State
law.
4. Development Commissioner to be Chief Conciliator
Notwithstanding anything contained in the Madhya Pradesh Industrial Relations Act, 1960 (No.
27 of 1960), the Development Commissioner shall be the Chief Conciliator for the purposes of
this Act in respect of the Zone.
5. Nomination of officers to assist the Development Commissioner
The State Government may nominate officers and experts of any department or institution or
organization as it may deem fit to assist the Development Commissioner.
CHAPTER-III
THE DEVELOPER OF THE ZONE
6. Appointment of Developer
(1) The State Government shall appoint a Developer for the purposes of development of
the Zone.
(2) The procedure for selection and appointment of Developer shall be such as may be
prescribed.
7. Land for the Zone
(1) The State Government may transfer land owned, acquired or controlled by the State
Government to the Developer on such terms and conditions as the State Government
may prescribe.
(2) The Developer may acquire land independently from private parties by purchase, lease or
otherwise.
(3) Notwithstanding anything contained in the Madhya Pradesh Land Revenue Code 1959 all
land located within the Zone and held in Bhumiswami rights shall be deemed to have been
diverted to non agricultural purposes, as from the date of transfer of possession of such
land to the Developer.
CHAPTER IV
POWERS AND FUNCTIONS OF THE DEVELOPER
8. Functions of the Developer.
(1)The Developer shall secure planned development of the Zone and provide for the
establishment, operation, maintenance and management of the Zone infrastructure and
amenities.
(2)Without prejudice to the generality of the provisions of sub section(1), the Developer shall
perform the following functions namely, -
(a) to prepare a plan for the development of the Zone in conformity with the
regulations made by the Development Commissioner and to implement such
plan after obtaining his approval;
(b) to demarcate and develop sites for industrial, commercial, residential and
other purposes according to the plan;
(c) to allocate and transfer, either by way of sale or lease or otherwise, plots of
land, building or installations for industrial, commercial, residential or other
purposes subject to his own title in relation to such plots of land, building or
installations;
(d) to regulate the erection of buildings and setting up of industries in accordance
with the plan as approved by the Development Commissioner;
(e) to develop, construct, install, operate, manage and maintain infrastructure and
amenities for providing services either by itself or through any other person
authorized by it, on its behalf;
(f) to demarcate the boundary of the Zone and any parts thereof, and to
construct and maintain demarcation structures, in such manner as may be
prescribed; and
(g) to perform such other functions as may be prescribed.
9. Power of Developer in respect of land and levy of charges
(1) The Developer, may fix rates for transfer of land, building or installations by way of sale,
lease, or otherwise from time to time.
(2) For the purpose of providing, maintaining or continuing any amenity and infrastructure
in the Special Economic Zone, the Developer may levy such charges, as he may
consider necessary in respect of any land, building, installations or any other
infrastructure from the occupier thereof.
10. Provision for infrastructure or amenity by Developer
(1) The Developer may engage a co-developer, 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.
11. Generation and supply of electricity
(1) Notwithstanding anything contained in the Madhya Pradesh Vidyut Sudhar Adhiniyam,
2000 (No. 4 of 2001) or any other State law dealing with electricity, the following
provisions shall apply to the generation, transmission, distribution, supply, sale and
use of electricity in the Zone, namely, -
(i) The Developer or Co-developer or any other person designated as such by the
Development Commissioner shall be deemed to be the Licensee to undertake
in the Zone, the activities of transmission, distribution, supply and sale of
electricity, with authority to purchase the energy requirements in the Zone
from such sources as may be considered appropriate and conducive to the
development of the Zone.
(ii) The Developer or the Co-developer or any other person designated as such by
the Development Commissioner shall be deemed to be permitted to generate
electricity for the purpose of supplying it within the Zone.
(iii) The Unit established in the Zone shall be entitled to generate electricity either
individually or in association with other Units in the Zone for captive use and
consumption of such Unit or Units or sell and supply electricity to other units in
the Zone.
(iv) The tariff terms and conditions of the generation, transmission, distribution,
sale, supply and use of electrical energy in the Zone shall be subject to such
regulations as may be made by the Development Commissioner.
(2) The Development Commissioner shall perform functions and exercise powers with
regard to matters specified in sub section (1) in place of the Madhya Pradesh
Electricity Regulatory Commission constituted under the Madhya Pradesh Vidyut
Sudhar Adhiniyam 2000 (4 of 2001).
(3) Save as provided in sub-sections (1) and (2) the Commission constituted under the
Madhya Pradesh Vidyut Sudhar Adhiniyam, 2000 (No.4 of 2001) and other concerned
authorities connected with the operation of the power system shall exercise all powers
including but not limited to safety, security and technical standards to be maintained
in the generation, transmission, distribution, supply, sale and use of electricity in the
Zone.
(4) The provisions of levying electricity duty and cess under the Madhya Pradesh
Electricity Duty Act 1949 (9 of 1949) and Madhya Pradesh Upkar Adhiniyam 1981 (1
of 1982) shall not be applicable to sale or supply of electricity to the Zone and
generation, transmission, distribution and consumption within the Zone.
CHAPTER V
SPECIAL ECONOMIC ZONE TO BE AN
INDUSTRIAL TOWNSHIP
12. Declaration of Zone to be Industrial Township Area
Notwithstanding anything contained in the Madhya Pradesh Municipalities Act 1961 or Madhya Pradesh
Municipal Corporation Act, 1956 -
(i) The Special Economic Zone may be notified as an Urban Area;
(ii) The Governor may, having regard to the size of the area and Municipal services
being provided or proposed to be provided in the Zone, by the Developer, by
notification, specify the zone to be an industrial township;
(iii) The State Government may appoint an Authority for the zone vested with such
powers and functions, as may be prescribed.
CHAPTER VI
EXEMPTION FROM STATE TAXES, DUTIES,
CESS AND LEVIES
13. Exemption from State taxes, duties and cess
(1) The following shall be exempt from payment of any tax, duty, fees, cess or any other
levies under any State law namely; -
(i) any goods exported out of or imported into the Zone;
(ii) inter Unit transactions of goods within the Zone;
(iii) goods from the Zone sent for value addition to the Domestic tariff area and
returned to the Zone thereafter; and
(iv) services that provide value addition to a product within the Zone.
(2) All transactions and transfers of immovable property or documents related thereto within
the Zone shall be exempt from stamp duty.
CHAPTER VII
MISCELLANEOUS
14. Act to override other laws
The provisions of this Act shall have effect notwithstanding anything contrary contained in any other
State law for the time being in force.
15. Protection of action taken in good faith
No suit, prosecution 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 there under.
16. Power to remove difficulties
(1) If any difficulty arises in giving effect to the provisions of this Act, the State
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 on the table of the legislative
assembly.
17. Power to make rules
(1) The State Government may, by notification, make rules to carry out the purposes
of this Act.
(2) In particular and without prejudice to the generality of the foregoing powers such
rules may provide for all or any of the following matters, namely: -
(i) the procedure for the selection and appointment of Developer;
(ii) the powers and functions of the State Government and its agencies to
be delegated to the Development Commissioner;
(iii) the norms for construction and maintenance of demarcation
structures; and
(iv) any other matter which has to be or maybe prescribed.
(3) All rules made under this Act shall be laid on the table of the legislative assembly.
18. Power to make Regulations
(1) The Development Commissioner may make regulations not inconsistant with this Act and
the rules made thereunder for the purpose of giving effect to the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing powers such
regulations may provide for the following matters, namely: -
(a) all matters expressly required by this Act to be prescribed by regulations under
sub-section (3) of section 3;
(b) the terms and conditions of the generation, transmission, distribution sale, supply
and use of electrical energy under section 11; and
(c) the fixation of electricity tariff under section 11.
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, 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.
STATEMENT OF OBJECT AND REASONS
With a view to provide stable policy for investment in the Indore Special Economic Zone, it has
been decided to enact a suitable legislation. The proposed legislation will attract investors by
facilitating the development of world class infrastructure for making the products competitive in the
international market and will also facilitate investments and creation of opportunities for employment
for the people of the State.
Hence this Act.
Member-in-charge
Bhopal,
Dated: 28.3.2003