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A Special Economic Zone is a designated and declared area, gazetted for the purpose of undertaking SEZ activities while enjoying special economic regulations that differ from general trade, tax and investment rules. The zones can either be public or private. A public SEZ is a zone developed and managed by the government while a private SEZ is a zone developed by a private developer(s).These zones are regulated by the Special Economic Zones Authority that issues three main sez licences namely the Developer licence, Operator licence and the Enterprise licence.
A developer licence is licence issued to a corporate entity engaged in the development of integrated infrastructure facilities on a public, private or Public-Private Partnership basis of a gazetted SEZ.