Special Economic Zones — Prelims Strategy

Prelims Strategy

To ace Prelims questions on Special Economic Zones, aspirants must prioritize factual recall and precise understanding of key definitions and provisions. Start by mastering the historical timeline: the establishment of EPZs (Kandla, 1965), the SEZ policy (2000), and the enactment of the SEZ Act (2005) and Rules (2006).

Focus on the core features of the SEZ Act, especially the minimum area requirements for different types of SEZs (1000 ha for multi-product, 100 ha for sector-specific). Understand the governance structure thoroughly: the apex Board of Approval (BoA) and its chairman, the role of the Development Commissioner (DC), and the Unit Approval Committee (UAC).

Differentiate clearly between their functions. Memorize the key fiscal incentives initially offered (e.g., Section 10AA income tax exemption, customs duty waivers) and, critically, note the amendments and phasing out of these benefits (e.

g., MAT/DDT imposition, Section 10AA withdrawal for new units post-2020). Pay attention to the concept of 'deemed foreign territory' and 'Net Foreign Exchange Earner' (NFE). Practice MCQs that test these specific facts, dates, and numbers.

Keep an eye on current affairs for any new legislative proposals like the DESH Bill, as Prelims often includes questions on recent policy changes or proposed reforms. A strong grasp of the 'SEZ-FLIP' mnemonic will aid quick recall of essential factual components.