Question 1

Semiconductor fabs require a minimum of 50 hectares of land in an SEZ.

Accepted Answer

The 2025 amendment specifically reduced the minimum land requirement for semiconductor and electronics manufacturing to 10 hectares.

Question 2

Goods supplied free of cost by global partners do not count towards an SEZ unit's export performance.

Accepted Answer

Under the new Rule 53 paragraph (E), the value of free-of-cost goods received and supplied is now included in Net Foreign Exchange calculations for the semiconductor sector.

Question 3

Consider the following statements regarding the Special Economic Zones (Amendment) Rules, 2025: 1. The minimum land requirement for SEZs exclusively manufacturing semiconductors was reduced from 50 hectares to 10 hectares. 2. The Board of Approval can now approve land for SEZs even if it is encumbered, provided it is leased or mortgaged to government agencies. 3. The amendment entirely abolished the Net Foreign Exchange (NFE) earning requirement for semiconductor manufacturing units. How many of the above statements are correct?

Accepted Answer

(b) Only two — Statements 1 and 2 are correct. Statement 3 is incorrect because the NFE requirement was not abolished. Instead, Rule 53 was amended to allow the value of free-of-cost goods to be included in the NFE calculation, making it easier for units to maintain a positive NFE without abolishing the rule entirely.

Question 4

Match the amended SEZ Rules 2006 with their corresponding provisions introduced in 2025: List I (Rule) - A. Rule 5, B. Rule 7, C. Rule 18, D. Rule 53. List II (Provision) - 1. Domestic Tariff Area (DTA) sales flexibility, 2. Relaxation of encumbrance-free land norms, 3. Inclusion of free-of-cost goods in Net Foreign Exchange, 4. Reduction of minimum contiguous land area to 10 hectares. Select the correct code:

Accepted Answer

(a) A-4, B-2, C-1, D-3 — Rule 5 deals with the minimum land area (reduced to 10 hectares). Rule 7 deals with land encumbrance relaxations. Rule 18 handles the disposal of goods, including DTA sales. Rule 53 deals with the calculation of Net Foreign Exchange (NFE) and the inclusion of free-of-cost goods.

Question 5

Assertion (A): The SEZ Amendment Rules 2025 allowed the value of free-of-cost (FOC) goods to be included in Net Foreign Exchange (NFE) calculations for semiconductor units. Reason (R): Semiconductor and electronics component manufacturing relies heavily on consignment tooling and components supplied at no cost by global supply chain partners.

Accepted Answer

(a) Both A and R are true, and R is the correct explanation of A. — The assertion is factual as per the newly inserted paragraph (E) in Rule 53. The reason correctly explains why the government made this change: the semiconductor industry often involves global partners sending prototypes, specialized materials, or tooling free of cost. Previously, these did not count towards NFE, making compliance hard. The amendment aligns the rules with industry reality.

SEZ Amendment Rules 2025 for Semiconductors

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