Bihar

• 29 Mar 2025

SEZ in Buxar and West Champaran

Why in News? 

Bihar's Industry Minister announced setting up of  Special Economic Zones (SEZ) in Buxar and West Champaran . 

Key Points 

• About the issue: 
  • The central government had approved their formation till November 2024. These zones will be established in  Navanagar of Buxar and Kumarbagh of West Champaran . 
• Special Economic Zone: 
  • Introduction: 
  • SEZs are zones within a country that are often duty-free (fiscal concessions) and have different trade and commercial laws primarily to encourage investment and create employment. 
    • These are also created to better administer these areas, making it easier to do business. 
  • SEZs in India: 
    • Asia's first Export Processing Zones ( EPZ) was established in Kandla, Gujarat in 1965 . 
    • These EPZs were structured similar to SEZs, with the government establishing EPZs in the year 2000 to address the infrastructural and bureaucratic challenges of EPZs . 
    • The Special Economic Zone Act was passed in the year 2005 and came into force along with the SEZ Rules in the year 2006. 
    • There are currently 379 SEZs notified , of which 265 are operational. About 64% of the SEZs are located in five states - Tamil Nadu, Telangana, Karnataka, Andhra Pradesh and Maharashtra. 
    • The Board of Approval is the apex body and is headed by the Secretary, Department of Commerce ( Ministry of Commerce and Industry ). 
    • The Baba Kalyani-led committee was constituted by the Ministry of Commerce and Industry to study India's existing SEZ policy and submitted its recommendations in November 2018. 
    • It was set up with the broad objective of evaluating the SEZ policy towards making it World Trade Organisation (WTO) compatible and bringing in global best practices to optimally utilise the capacity and maximise the potential output of SEZs.