Proposals for setting up of new SEZs and MHA clearance- (Ministry of Commerce and Industry) (19 Dec 2016)

MANU/COMM/0213/2016

Commercial

National Security Clearance is required to be obtained Ministry of Home Affairs (MHA) as per the guidelines issued by the MHA. These guidelines inter-alia provide as under:-

(i) Country Sensitivity: India's national security concerns include threats emanating from outside country. Hence, investment proposals originating from countries of concern (contextual) and tax havens require higher due diligence caution during the process of vetting.

(ii) Geographical sensitivity: for the preservation of territorial integrity, threats emanate from ware and cross border activities including terrorism, subversion and sabotage. Consequently, special care and higher due diligence needs to be exercised while evaluating proposals in the proximity of the LAC and the international borders from the point of view of locational integrity. list of geographically sensitive areas is as under:-

Proposals of foreign investment from countries of concern in the following areas require more due diligence in threat assessment:

1. Areas in the vicinity of within 50 Kms from LoC/LAC/International Border:

2. Areas in the proximity of nuclear, space, defence installations or installations notified under the Official secrets Act 1923.

2. Since the requirement of National Security Clearance is to be assessed by the Department before issuance of formal approval for setting up of new SEZs, it is requested that the proposals may be examined in terms of the above provisions and indicate whether proposal would require National Security Clearance from MHA before sending the same this Department for consideration of the Board of Approval (BOA).

3. It is also requested that such proposal requiring National Security Clearance should accompanied by a self-declaration by the Company/Developer/Director(s) in the enclosed format.

4. In those cases not requiring National Security Clearance, the same may be confirmed while referring the proposal for consideration of BOA meeting. No proposal for setting up of new SEZ will be entertained without this information.

Tags : SEZS MHA SETTING UP