Union commerce ministry has prepared a draft policy for Special Economic Zone (SEZ) which reduces the minimum land requirement norms and other regulations for the sector.

   According to reports, the draft policy calls for reducing the minimum land requirement for multi-product SEZs to 250 hectare from 1,000 hectare now, while the maximum area would remain capped at 5,000 hectare.

   For multi-services units, SEZ for a specific sector, port or airport, the ministry has proposed reducing the minimum size to 40 hectare from 100 now.

   In the case of north-eastern states, union territories and some hilly states, the minimum area requirement may be brought down to 50 hectare from the current 200. Reduction in the SEZ land requirement will come as a significant relief to developers.

   Among others, the policy prescribes easier contiguity norms, clarity in land sale and transfer, relocation of the zones, development of infrastructure, extending focus market schemes to these units and exit policy for developers and units.

   It is learnt that the union commerce Secretary SR Rao may meet his counterpart in the Revenue Department, Sumit Bose, later this month to firm up the changes in the SEZ policy.