1. Kandla Special Economic Zone (KASEZ) earlier known, as the Kandla Free Trade Zone
is located at the port town Gandhidham in the state of Gujarat. One of the most
significant features of this special economic zone at Kandla is that it is strictly a union
government zone amidst others with more of private participation. The Kandla Special
Economic Zone (KASEZ) is the first in Asia and largest multi-product Special Economic
Zone in India. The concept of the Special Economic Zone at Kandla has been formulated
on the basis of the new Special Economic Zone (SEZ) scheme introduced in the Export
and Import Policy from the year 2000.
The main purpose is to offer an environment for export production that is internationally
competitive and free from hazards. The KASEZ offers all facilities to the exporters and
hence it is in demand among the export-oriented manufacturing units in India. The net
foreign exchange earning of the Kandla Special Economic Zone is more than 60%, the
highest among others across the country. There are over 15,000 workers employed in the
units of Kandla SEZ including many women workers.
The Kandla Special Economic Zone following the Govt. of Gujarat’s Policy on SEZ
offers infrastructural facilities encompassing land, factory premises, abundant labor
supply, co-operating administration support, water, power, clearance benefits,
telecommunications, and urban transport services. Recently, TATA Consultancy Services
has announced the launch of PKI or Public Key Infrastructure solution for the Kandla
Special Economic Zone (KASEZ). As a result KASEZ today is a part of Tata
Consultancy Services Certifying Authority (TCS-CA) trust network and will behave as a
Registration Authority to TCS-CA. Moreover, the SEZ at Kandla is the largest in India
and the most spacious among all other SEZs within the country. Along with the highly
developed infrastructure the Kandla Special Economic Zone has a noteworthy
geographically strategic position, as it is located only at a distance of 9kms away from the
modern and all-weather friendly port of Kandla in Gujarat. Such facilities within the
Kandla SEZ make it the best possible and most lucrative SEZ unit for manufacturing
goods for export-oriented trading activities. The major industries operating their export-
oriented units in the Kandla Special Economic Zone includes Gems and Jewellery,
Electronic, Software, Textile and Garments, Engineering Goods, Sports Goods, and
Leather Products.
The highlights of the infrastructure and incentives of the Kandla SEZ are –
• The SEZ unit at Kandla is treated as foreign territory for the purpose of trade
operations and duties and tariffs
• For import activities no licence is required and import of capital goods, spares,
consumables, and raw materials is exempt from customs duty
• 100% Foreign Direct Investment is permitted in the manufacturing sector and for
the development of infrastructure
• Subcontracting abroad is permitted

2. • The import and export cargo items are free from all routine examination by
Customs
• The Kandla SEZ provides support services like banking, post office clearing
agents, restaurants, and dispensary within the zone complex. State Bank of India,
Bank of Baroda, Punjab National Bank, and Dena Bank all have their branches in
the Kandla Special Economic Zone (KASEZ).
Contact details of the Kandla Special Economic Zone (KASEZ) is as follows-
The Development Commissioner
Kandla Special Economic Zone
Ministry of Commerce & Industry
Government of India
Gandhidham (Kutch), Gujarat -370 230
India.
Phone: +91 2836 252474
Fax: +91 2836 252250/252194
E-mail: kasez@kasez.com
To get more details on the Kandla Special Economic Zone (KASEZ), please search the
following links-
f Doing Business with KASEZ f Advantage Kandla SEZ
A Govt. of Gujrat's Policy on SEZ
Advantage of Kandla SEZ is that it is India's biggest Asia's 1st Special Economic Zone
in the multi- product category.
The various advantages of Kandla SEZ which is located in the Indian state of Gujarat are
that it has infrastructure facilities that are well developed, abundant labor supply, and
situated at a distance of 9 km from the Kandla port which is an all weather modern port.
This has proved to be an advantage for the Kandla SEZ for the export and import of
goods from the SEZ can be done very easily for the time taken for transportation is less
and so the costing is also less.
Further Advantage Kandla SEZ is that there is assured supply of water and power which
are very essential for the industries that are set up in the SEZ. Also in the Kandla SEZ
there is a dynamic round the clock administrative support. This has also proved to be an
Advantage Kandla SEZ.
The various advantageous Kandla SEZ policies that has attracted many companies to set
up units in the SEZ are that it is treated as a enclave that is duty free and also as a foreign
country for tariffs, duties, and trade operations. In the Kandla SEZ customs duty has been
exempted on import of consumables, raw material, spares, and capital goods. Further the

3. beneficial Kandla SEZ polices are that for import license is not required, 100%
exemption from income tax for a period of 5 years and after that 50% exemption from
income tax for 2 years, and the units can be for service, manufacturing, and trading
activity, and norms for wastage is not fixed. Also the positive Kandla SEZ polices that
has attracted many companies to set up units in the SEZ are that there are no regular
checking by customs of import and export cargo, availability of subcontracting facility
for jewelry units, goods that are duty free can be used in 5 years, and no limits on foreign
investments that come for items reserved by SSI.
Advantage Kandla SEZ is also that many banks have opened their branches in the SEZ.
These include Bank of Baroda, State Bank of India, Dena Bank, and Punjab National
Bank. Further Advantage Kandla SEZ is that land is available at very low price at around
Rs. 13 per sq. mtr. Many companies have set up their units in the Kandla SEZ after
coming to know of its many advantages.
The companies that have units in Kandla SEZ are:
• Neelam Metal Industries
• Kandla Polyplast Pvt. Ltd.
• Hindustan Celluloids & Plastics Ltd.
• Maruti Exports
• Om Siddhi Vinayak Impex
• Palmon Exports
Advantage Kandla SEZ as seen are many and it is for this reason that many companies
have set up their units in the SEZ. So in order to further encourage the Kandla SEZ, the
state government must take more efforts so that Advantage Kandla SEZ is sustained on a
long-term basis.
Special Economic Zones (SEZs)

4. 55 SEZs are present in Gujarat,
covering an area of
approximately 27,125 hectares.
Gujarat has 3 operational SEZs,
covering an area of 506
hectares, which are:
• Kandla SEZ
• SUR SEZ
• Surat Apparel Park
7 Notified and Operational
SEZs, covering an area of
9,810 hectares
15 Notified SEZ are present,
covering an area of 6,114
hectares
22 formally approved SEZ in
Gujarat, covering area of 7,702
hectares
8 In-principle approved
covering an area of 2,993
hectares
These SEZs are involved in
several sectors such as,
Biotechnology, Power,
Handicraft/Artisan, Gems &
Jewellery and Port based
multiproduct.

5. Sectorwise SEZs in Gujarat
IT/ITes (15)
Electronic SEZ(GIDC), Million Minds SEZ (Ganesh), Shivganga Real Estate Holders,
City Gold Realtors Pvt. Ltd., Adani Township & Real Estate Co. Pvt. Ltd., 3rd Eye
Voice SEZ (Calica), Nipiam Infotech Pvt. Ltd., DLF SEZ, Tata SEZ, IT/ITeS
SEZ(GIDC), Aqualine Properties SEZ (Raheja), SGV Infrastructure, L&T Ltd.,
Strength Real Estate (Raheja), Gaurinandan Property Holder
Multi-Product (10)
Kandla SEZ, SUR SEZ, Dahej SEZ, Reliance SEZ, Dholera SEZ(Adani), Essar SEZ,
Sterling SEZ, Mundra Ports & SEZ Ltd(SEZ-1), Indian Infrastructure Corporation
Ltd., Mundra Ports & SEZ Ltd(SEZ-2)
Engineering (9)
Gallopse SEZ (NG Realty), Essar Hazira SEZ, Suzlon SEZ, Dishman SEZ, Ruchi Flat
Steel SEZ, PSL Limited, Welspun Anjar (SEZ-1), E Complex Private Limited,
Welspun Anjar (SEZ-2)
Others (8)
Biotech Savli SEZ(GDIC), Adani Power SEZ, Gems & Jewellery SEZ, Ceramic SEZ,
LMJ Warehousing Pvt. Ltd.(FTZW), Gujarat Finance City Development(GIFT)
Company Ltd, GGDCL Handicraft & Artisan(GIDC), Non conventional energy
Textiles & Apparels (4)
Surat Apparel Park SEZ, Ahmedabad Apparel Park SEZ, Pradip Overseas Ltd, Jindal
Worldwide Limited
Chemical (4)
Jayant SEZ, Jubilant Chem SEZ, Gujarat Hydrocarbon & Energy SEZ Ltd., Asia
Pacific Corporation Ltd.
Pharmaceuticals (4)
Pharmez (Zydus), Phaez (CPI), Dishman Pharma SEZ, JB SEZ
Port Based (1)
Kandla Port Trust SEZ
PORT BASED SPECIAL ECONOMIC ZONE
The Cochin Port in the role of the principal developer has commenced the
project initiatives to set up the first Port Based Special Economic Zone in India.
The Ministry of Commerce, has notified Vallarpadam and Puthuvypeen areas

6. within the port limit as two separate Port Based Special Economic Zones. Major
port based Projects like the International Container Transshipment Terminal
(ICTT), LNG Re-gasification Terminal, Crude Oil Handling Facilities for
BPCL-Kochi Refinery, are coming up in the SEZs. Projects like Bunkering
Terminal, Distribution Park including Free Trade Warehousing and process
industries have been proposed in these SEZs. The port is
currently establishing the infrastructure and amenities for the zone.
Location Vallarpadam & Puthuvypeen
Land Area 401 ha (115.25 ha at Vallarpadam & 285.84 ha at Puthuvypeen)
Developer Cochin Port Trust
• Vallarpadam SEZ for handling mainline and feeder container vessels
(ICTT).
• Puthuvypeen SEZ for unloading and storage of crude oil, Liquefied
Natural Gas and Liquefied Petroleum Gas by M/s. BPCL-Kochi
Refinery, M/s. Petronet LNG Ltd. (PLL) and M/s. Indian Oil Corporation
Brief details
Ltd. (IOCL), respectively.
of Projects
• Bunkering Terminal / Multi-User Liquid Terminal.
• Distribution Park including Free Trade Warehousing. The Distribution
Park can leverage the proximity of ICTT and its direct access to network
of National Highways, Railways and National Waterways for the
activities of consolidation/distribution of cargo including Free Trade
Warehousing.
Investment Total Investment: Rs.7500 crores
Execution Public-Private participation
Time Frame 2011-2012
Mundra Port and Special Economic Zone Limited (MPSEZ), India’s largest private port
and special economic zone, was incorporated as Gujarat Adani Port Limited (GAPL) in
1998 to develop a private port at Mundra, on the west coast of India. The company
commenced commercial operations in October 2001. Mundra Special Economic Zone
Limited (MSEZ) was incorporated in November 2003, to set up an SEZ at Mundra.
MSEZ was merged with GAPL in April 2006. The company was renamed as Mundra
Port and Special Economic Zone Limited, to reflect the nature of business.
Mundra Port provides cargo handling and other value-added port services. Mundra SEZ
is India’s first port-based multi-product SEZ.
First Indian SEZ

7. Kandla Special Economic Zone (KASEZ) in Gujarat was the first Indian SEZ. It was set
up in 1965 and in fact KASEZ was the first SEZ to be set up in Asia. Kandla SEZ is also
the largest multi-product SEZ in India, spread over 1.2 sq miles. Kandla SEZ is located
just 9 km away from the modern-all-weather Indian port of Kandla.
India was one of the first countries in Asia to recognize the effectiveness of the Export
Processing Zone (EPZ) model in promoting exports. To overcome the shortcomings
experienced on account of the multiplicity of controls and clearances; absence of world-
class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign
investments in India, the Special Economic Zones (SEZs) Policy was announced in April
2000.