The UTTAR PRADESH SPECIAL ECONOMIC ZONE DEVELOPMENT AUTHORITY ACT, 2002

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THE UTTAR PRADESH SPECIAL ECONOMIC ZONE
DEVELOPMENT AUTHORITY ACT, 20021
[U. P. ACT No. 10 of 2002]
Amended by
U. P. Act No. 09 of 2006
[As passed by the Uttar Pradesh Legislature, assented to by
the Governor on September 6, 2002 , under Article 200 of the
Constitution of India and was p ublished in the Uttar Pradesh
Gazette Extraordinary, dated September 7, 2002.]
AN
ACT
to provide for the constitution of an A uthority for the
development of certain areas in the State into industrial and
urban economic zone and for mailers connected ther ewith or
incidental thereto.
IT IS HEREBY enacted in the Fifty -third Year of the Republic
of India as follows:—
Short title 1. This Act may be called the Uttar Pradesh Special Economic
Zone Development Authority Act. 2002.
Definitions 2. In this Act,—
(a) "Amenities" means basic and essential services such as
roads, water supply, street lighting and power supply sewerage,
drainage, collection, treatment and disposal of industrial waste,
municipal waste etc., public health and education, firefighting services,
public parks and such other community facilities, services or
conveniences as the State Government may, by notification, specify to
be an amenity for the purposes of this Act ;
(b) "Authority" means the authority constituted under section 3
of the Act ;
(c) "Chief Executive Officer" means the officer appointed as
such under section 4 ;
(d) Developer' means a person or body of persons, company,
firm or such other private or government undertaking, who develops,
builds, designs, organizes, promote s, finances, operates, maintains,
manages part or whole of the infrastructure and other facilities of the
Zone and is who selected by the Authority and notified as such by the
State Government or the Government of India, as the case may be ;
(e) "Development Area " means any area notified by the State
Government for the Development of the economic zone.

1. For Statement of Objects and Reasons please see at the end of this Act.
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[The Uttar Pradesh Special Economic Zone Development Authority Act, 2002]

(f) " Special Economic Zone" means a part or the whole of the
development area notified under section 5 of the Foreign Trade
(Development & Regulation) Act 1992 ;
(g) ''occupier" means a person who occupies a site or building
within the Special Economic Zone and includes his successors and
assignee.
(h) "transferee" means a person to whom any land or building is
transferred in any manner whatsoever, under this Act and includes his
successor and assignee.
(į) "infrastructure facilities " means specialised services to be
used by specific user or a specific group of users and includes the
following specialized services namely :-
(i) generation and supply of electricity,
(ii) water extraction, treatment and distribution,
(iii) waste water treatment and solid waste management,
(iv) sanitation and sewerage system,
(v) airport and rail system,
(vi) roads, bridges, over-bridges, and
(vii) any other pubic facility of similar nature as may be notified
by the Government.
(j) the words and expressions building, development, to erect a
building and land shall have the meanings respectively assigned to
them in the Uttar Pradesh Urban Planning and Development Act,
1973.
Establishment
of Special
Economic
Zone
1 [2-A. (1) Any person desirous of esta blishing the Special
Economic Zone shall make an application in such form containing
such particulars and documnets and accompanied by such fees as
may be prescribed, to the State Government.
(2) The State Government shall scrutinize the aplication
received under sub -section (1) and recommend the same, with
modification, if any, to the Government of India for its approval and
declaration of the area to be the Special Economic Zone and notifying
the developer for such Special Economic Zone.]
Constitution
of the
Authority
3. (1) The State Government may, by notification, constitute for
the purposes of this Act, an Authority to be called the Special
Economic Zone Development Authority.
(2) The Authority shall be a body corporate.
(3) The Authority shall consist of the following:

1. Ins. by sec. 2 of U. P. Act No. 09 of 2006.
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[The Uttar Pradesh Special Economic Zone Development Authority Act, 2002]
(a) the Chief Secretary to the Movement of
Uttar Pradesh.
(b) the Agricultural Production Commissioner
(c) Industrial Development Commissioner
(d) the Secretary to the State Government i n
the Finance Department.
(e) the Secretary to. the State Government in
the Industrial Development Department.
(f) the Secretary to the State Government in
the Agriculture Department.
Chairman

Member
Member
Member

Member

Member
(g) the Secretary to the State Government in
the Food Processing Industry Department.
(h) Se cretary to State Government in the
Agricultural industry and Agricultural
Export Promotion Department.
(i) the Secretary to the Government in the
Small Scale industries Department.
(j) the Secretary to the Government in the
Planning Department.
(k) the Sec retary to the State Government in
the Housing Department.
(l) the Chief Executive Officer, Greater Noida
(m) the Chief Executive Officer, NOIDA
(n) the Chief Executive officer, UPSIDC
(o) the Chief Executive officer of the Zone
Member

Member

Member
Member
Member
Member
Member-
Secretary
In addition, the Authority may co -opt such members as it may
consider necessary for satisfactory discharge of its functions.
Explanation:— For the purpose of this sub -section, the
expression "the Secretary " where there is a Principal Secretary in the
Department, shall mean "the Principal Secretary".
(4) The headquarters of the Authority shall be at such place as
may be notified by the State Government.
(5) The procedure to the conduct of the meetings for the
Authority shall be such as may be prescribed.
(6) No act or proceeding of the Authority shall be invalid by
reason only of the existence of the any vacancy or defect in the
constitution thereof.

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[The Uttar Pradesh Special Economic Zone Development Authority Act, 2002]
Chief
Executive
Officer
4. (1) The Development Commissioner usually appointed by the
Government Chief Executive of India shall be the Chief Executive
Officer of the Authority and shall be the whole time officer of. The
Authority.
(2) The Chief Executive Officer shall be entitled to receive, from
the funds of the Auth ority, such salary and allowances and be
governed by such conditions of service as may be determined by a
general order of the State Government in this behalf.
(3) The Chief Executive Officer shall exercise such powers and
perform such duties as may as specified in the regulations or as may
be delegated to him by the Authority.
Staff of the
Authority
5. (1) Subject to such control and restrictions as may be
determined by a general or special order of the State Govern ment, the
Authority may appoint such number of officers and employees as may
be necessary for the performance of its functions, and may determine
their grades and designations.
(2) Subject to the provisions of sub -section (1) the officers and
employees of the Authority shall be entitled to receive from the funds of
the Authority such salaries and allowances and shall be governed by
such other conditions of services as may be determined by the
Authority.
Effect of an
area being
notified as
Special
Economic
Zone
6. Consequent to an area being notified as Special Economic
Zone,—
(a) the units established in such zone notified as such shall be
entitled to all fiscal benefits and exemptions granted by Government of
lndia from time to time.
(b) the area under such zone shall be deemed to be an Industrial
Township and any other' Industrial Township declared before within
the Special Economic Zone area, shall stand dissolved and shall be
replaced by the Special Economic Zone-industrial Township.
(c) all the benefits incentives notified by the State Government
from time t o time for Special Economic Zones shall be applicable to
units established in the Special Economic Zone.
Functions of
the Authority
7. (1) The function of the Authority shall be to secure the
planned development of the development area.
(2) Without prejudice to the generality of sub -section (1), the
Authority shall perform the following functions-
(a) to acquire land in the Special Economic Zone, by agreement
or through proceedings under the Land Acquisition Act, 1894 for the
purposes of this Act ;
(b) to prepare a plan for the development of the Development
Area, which may also outline guidelines with regard to Floor Area Ratio

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[The Uttar Pradesh Special Economic Zone Development Authority Act, 2002]
(FAR), ground coverage, Environmental provisions (green spaces,
drainage), fire safety measure etc ;
(c) to prepare Techno-Economic Feasibility report or as the case
may be, detailed project report for any project considered to be
necessary for the development of the Zone and t ake measures to invite
private investments for such project and ensure its implementation ;
(d) to select a developer for a part or whole of the infrastructure
and other facilities of the Zone ;
(e) to enter into suitable joint venture arrangement for
development of different components of the Developm ent Area
including subsequent transfer of ownership of the project to the joint
venture partner;

(f) to co -ordinate with other departments and ensure timely
implementation of projects and plans prepare by it ;
(g) to resolve disputes of commercial nature between the
agencies providing services and consumers thereof within the
territorial jurisdiction of the Authority ;
(h) may delegate any or all its powers to the developer in his
designated area, as the case may be; and
(i) any other function that may be notified by the Government.
Power of the
Authority in
respect of
transfer of
land
8. The Authority, may sell, lease or otherw ise transfer whether
by auction, allotment or otherwise any land or build ing belonging to
the Authority in the Development area, on such terms and conditions
as it may think fit to impose subject to any rules or regulations that
may be made under this Act.
Levy of taxes
by the
Authority
9. (1) For the purposes of providing, ma intaining or continuing
any amenity in the Development Area, the Authority may, with the
previous approval of the State Government, levy such annual taxes as
it may consider necessary in respect of any site or building on the
occupier thereof, provided tha t the tot al incidence of such taxes shall
not exceed one per cent of the market value of such site, or building,
as the case may be.
Explanation-For the purposes of this sub-section, the
expression market value means, the amount of—
(a) consideration, in the case of sale : or
(b) premium. in the case of lease : or
(c) the minimum value determined in accordance with the Uttar
Pradesh Stamp (Valuation of Property) Rules, 1997 made under the
Indian Stamp Act, 1899, whichever is more.
(2) If, the State Government considers it necessary or expedient
in the public interest it may by a general or special order exempt

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[The Uttar Pradesh Special Economic Zone Development Authority Act, 2002]
wholly or partly any occupier or any class thereof from the taxes levied
under sub-section (1).
Provisions for
infrastructure
10. (1) The Au thority may provide any infrastructure facility of
its own or may engage a Government or private agency in the manner
prescribed for the purpose of providing an infrastructure facility.
(2) Where any infrastructure facility is provided, the Authority
shall have the power to levy user-charges for the service so provided.
(3) The rates of the user -charges referred to in sub -section (2) shall be
fixed for different categories of the users by the authority, so however,
that it ensures an annual return not e xceeding sixteen per cent post-
tax return on the capital investment made in providing the
infrastructure facility.
(4) The Authority may delegate the power of collection of the
user-charges to the agency providing the infrastructure facility.
Explanation— For the purposes of this section—
(a) the expression "provide" includes development, construction,
installation, maintenance and operation of the infrastructure faculty;
(b) the expression "post -tax return'' means the net return that
accrues after pa yment of the income tax that may be found to be
payable on the gross return.
Functions of
the Developer
11. (1) The function of the Developer shall be to secure the
planned development of the zone and to provide for the operation,
maintenance, management and administration of the zone.
(2) Consequent to a Developer being so selected by the
Government, the entire responsibility of planned development of the
development area or the Special Economic Zone shall lie with the
Developer and the Authority shall have no rol e in the implementation
of the Economic Zone ;
Provided that for that part of the development area which is not
notified as the Special Economic Zone, the Authority shall hav e all the
powers of a Developer ;
Provided further that any part of a Special Economic Zone for
which no Developer is selected, the Authority shall have all the powers
of a Developer.
(3) Without prejudice to the generality of sub -section (1), the
developer, may perform the following functions :—
(a) prepare a plan for the development of the zone in conformity
with the environmental, FAR, ground coverage, fire safety guidelines
outlined by the Authority, demarcate and develop sites for industrial,
commercial and residential purposes according to the plan;
(b) lay down the purpose for which a particular site or plot of

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[The Uttar Pradesh Special Economic Zone Development Authority Act, 2002]
land shall be used, namely, for industrial, commercial or residential
purpose or for any other specified purpose;
(c) provide infrastructure for indust rial, commercial and
residential purposes;
(d) provide amenities;
(e) allocate and transfer either by way of sale or lease or
otherwise plots of land for industrial, commercial or residential
purposes ;
(f) regulate the erection of buildings and settin g up of
industries;
(g) develop, construct, install, operate, manage and maintain
infrastructure facilities for providing specialised services either by itself
or through any other person authorised by it on its behalf.
Power of
Developer in
respect of
transfer of
land
12. The Developer may sell, lease or otherwise transfer whether
by auction allotment or otherwise any land or building belonging to the
Authority in the Special Economic Zone on such terms and conditions
as it may think fit to impose subje ct to the terms and conditions
governing its appointment and notification as a Developer.
Levy of fees
by Developer
13. For the purposes of providing, maintaining or continuing
any amenity in the Special Economic Zone, the developer may, levy
such annual fees as it may consider necessary in respect of any site or
building on the occupier thereof.
Provision for
infrstructure
facilities
14. (1) The Developer may provide any infrastructure facility of
its own or may engage a Government or private agency in t he manner
prescribed for the purposes of providing an infrastructure facility.
(2) Where any infrastructure facility is provided, the developer
shall have the power to levy user-charges for the service so provided.
(3) The Developer may delegate the powe r of collection of the
user-charges to the agency providing the infrastructure facility.
Explanation— For the purposes of this section—
the expression "provide'" shall include development,
Construction, installation, maintenance and operation of the
infrastructure facility.
Review
Committee
15. (1) In the case where infrastructure is to be provided by the
Developer, a Review Committee shall be formed for every sector
consisting of the following members :—
(a) the nominee of the Developer ;
(b) the Development Commissioner ;
(c) the Representatives of units/residents/service providers or
other such interest group, if any.

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[The Uttar Pradesh Special Economic Zone Development Authority Act, 2002]
(2) The Review Committee shall review and decide within the
terms of appointments of the Developer, the works and other matters
between the Developer and the Consumers.
(3) The Review Committee shall meet at such places and at
such times as may be deemed necessary.
Unit
Approval
Committee
16. (1) The State Government, may by notification, either
empower the Development Commissioner or consti tute for the
purposes of this Act, a Committee to be called the Special Economic
Zone Unit Approval Committee. The Chief Executive officer of the
authority shall be the Chairman of the committee and the committee
shall consist of representatives of all con cerned departments such as
labour, environment and pollution, industries, trade tax, power, etc.
(2) The Unit Approval Committee shall grant necessary local
and State level clearances, approvals, Licenses or registrations as the
case may be, for setting up of a unit within the Economic Zone,
including,—
(i) environment clearance for site ;
(ii) no objection certificate/consent for establishment under
Water (Prevention and Control of Pollution) Act, 1974 and Air
(Prevention and Control of Pollution) Act, 1981;
(iii) site clearance on behalf of Factories and Boilers
Inspectorate ;
(iv) approval of factory plan under Factories Act, 1948 ;
(v) licence for running and operating the Unit, if required ;
(vi) registration of Boilers on behalf of Chief Inspector of Boilers;
(vii) power load approval, if required ;
(viii) any other approval so notified or required ;
(3) The Unit Approval Committee may, invite such experts or
representatives of other departments as it may consider necessary for
expeditious grant of approvals and clearances.
(4) The Unit Approval Committee shall supervise and monitor
various clearances, approvals, licences or registrati ons and in cases of
violations/non-compliance shall take appropriate action as per
relevant applicable laws.
(5) The Unit Approval Committee may appoint an agency to
supervise and monitor various licences and approvals etc. granted by it
and may call for any information required to monitor such clearances
and permissions etc.
Applications
of certain
provisions of
President's
Act XI of
1973
17. The provisions of Chapter VII and sections 30, 32, 40, 4 1,
42, 43, 44, 45, 46, 47, 49, 50, 51, 53 and 58 of the Uttar Pradesh
Urban Planning and Development Act, 1973, as re -enacted and
modified by the Uttar Pradesh President's (Re-enactment with

662
[The Uttar Pradesh Special Economic Zone Development Authority Act, 2002]
Modifications) Act, 1974, shall mu tatis mutandis apply to the
Authority with the adaptation that—
(a) any reference to the aforesaid Act shall be deemed to be a
reference to this Act;
(b) any reference to the Authority .constituted under the
aforesaid Act shall be deemed to be a referenc e to the Authority
constituted under this Act ; and
(c) any reference to the Vice -Chairman of the Authority shall be
deemed to be a reference to the Chief Executive Officer.
Application
of certain
provisions of
industrial
Area
Development
Act
18. The pr ovisions of sections 10, 13, 14, 15 and 16 of the
Uttar Pradesh Industrial Area Development Act, 1976, shal l mutatis
mutandis apply to the Authority with the adaptation that—
(a) any reference to the aforesaid Act shall be deemed to be a
reference to this Act;
(b) any reference to the Authority constituted under the
aforesaid Act shall be deemed to be a reference to the Authority
constituted under this Act; and
(c) any reference to the Vice -Chairman of the Authority shall be
deemed to be a reference to the Chief Executive Officer.
Overiding
effect of the
Act
19. The area declared as Development Area or as Special
Economic Zone under this Act, such area or part thereof if included in
the master plan or the zonal development plan under the Uttar
Pradesh Urb an Planning and Development Act, 1973, or any other
development plan under any other Uttar Pradesh Act, shall be deemed
to be excluded from any such plan from the date of such declaration.
Power to
make rules
20. The State Government may, by notification, make rules for
carrying out the purposes of this Act.
Power to
make
regulations
21. (1) The Authority may, with the previous approval of the
State Government, make regulations n ot inconsistent with the
provisions of this Act or the rules made thereunder for the
administration of the affair of the Authority.
(2) in particular, and without prejudice to the generality of the
foregoing power, such regulation may provide for all or any of the
following maters, namely:—
(a) the summoning and holding of meet ing of the Authority, the
time and place where such meeting are to be held, the conduct of
business at such meetings, and the number of members necessary to
form a quorum thereat;
(b) the powers and duties of the Chief Executive Officer ;
(c) the form of register of applications for permission to erect a
building ;

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[The Uttar Pradesh Special Economic Zone Development Authority Act, 2002]
(d) the management of properties of the Authority ;
(e) fees to be levied in the discharge of its functions ;
(f) charges to be collected by any person for providing any
infrastructure facility.
(g) such other matters as are to be provided for in the
regulations.
Modification
of certain
enactments
in relation to
Special
Economic
Zone
22. The enactments set out in the Schedule in relation to the
Special Economic Zones either cease to apply or apply with such
modifications as the State Government may by notification specify.

SCHEDULE
(See section 22)
List of Enactments
1. U. P. Trade Tax Act, 1948
2. Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964
3. U ttar Pradesh Shops and Commercial Establishments Act,
1962
4. UP Electricity (Duty) Act, 1952

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[The Uttar Pradesh Special Economic Zone Development Authority Act, 2002]

STATEMENT OF OBJECTS AND REASONS
Several reformatory steps have been taken by the Government
of India since 1991 relating to Industrial and Export Import Policy. In
this connection, establishment of Special Economic Zones in various
States have been planned under the Export -Import Policy 2000- 2001
declared by the Ministry of Commerce and Industry of the Government
of India. In order to further the aforesaid scheme, it h as been decided
to make a law to provide for the constitution of an Authority for
development of certain areas in the State as industrial and urban
Special Economic Zones and for matters connected therewith or
incidental thereto.
The Uttar Pradesh Special Economic Zone Development
Authority Bill, 2002 is introduced accordingly.

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