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Section 50 of The Special Economic Zones Act, 2005

The State Government may, for the purposes of giving effect to the provisions of this Act, notify policies for Developers and Units and take suitable steps for enactment of any law--

(a)granting exemption from the State taxes, levies and duties to the Developer or the entrepreneur;
(b)delegating the powers conferred upon any person or authority under any State Act to the Development Commissioner in relation to the Developer or the entrepreneur.

Summary

State Governments can notify special policies for Developers and Units to give effect to the provisions of this Act.
State Governments are empowered to take suitable steps to enact State laws that grant tax exemptions to Developers or entrepreneurs.
These tax exemptions can cover State-level taxes, levies, and duties.
State Governments can enact laws to delegate any powers conferred under any State Act to the Development Commissioner of the zone.

Practical examples

1On March 12, 2026, the State of Karnataka notifies an SEZ policy and enacts a law exempting Arjun, an entrepreneur running an aerospace Unit, from paying State electricity duty and local cess, saving his business 200,000 rupees a month.

2In July 2026, the State Government of Tamil Nadu enacts a law that delegates the power to issue local environmental approvals under a State pollution Act directly to the local Development Commissioner, allowing Deepa to get her unit approved in ten days instead of months.

FAQ

1. To whom can the State Government delegate powers under State Acts?

The State Government can delegate powers conferred upon any person or authority under any State Act to the Development Commissioner of that Special Economic Zone.

Test yourself

Q1.Under Section 50 of The Special Economic Zones Act, 2005, a State Government can enact laws to grant exemptions to Developers and entrepreneurs from which of the following?

Q2.Under Section 50 of The Special Economic Zones Act, 2005, the powers under any State Act can be delegated to which authority in relation to a Developer or entrepreneur?

Q3.Under Section 50 of The Special Economic Zones Act, 2005, what is the primary purpose for which a State Government may notify policies and enact laws?

Q4.Under Section 50 of The Special Economic Zones Act, 2005, which entities are eligible to receive tax exemptions under State-notified policies?

49PreviousSection 49 Power to modify provisions of this Act or other enactments in relation to Special Economic Zones.51NextSection 51 Act to have overriding effect.

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