The Special Investment Region (SIR) Act – 2009

The state government has enacted a legal framework for the SIR – The Gujarat Special Investment Region Act – 2009. It has come into effect from 6th January, 2009. This shows the commitment of the Government to set up world-class hubs of economic activity on the lines of fastest growing countries of the world.
The SIR Act, inter alia, provides for following matters :

1. It enables the State Government to establish, develop, operate and regulate the Special Investment Regions (SIR)
2. The Government is empowered to declare Investment Regions or Industrial Areas and designate them as Special Investment Regions (SIR)
3. An Investment Region will have as area of more than 100 sq km. and an Industrial Area will have an area of more than 50 sq km.
4. A four tier administrative mechanism is set up for establishment, operation, regulation and management of the SIRs
5. The administrative mechanism comprises of an Apex Authority (GIDB), a Regional Development Authority (RDA) for each SIR, a Project Development Agency and project specific SPVs
6. The Apex Authority will be the highest policy making body
7. RDA will look after the ground level issue of development & regulation
8. RDA will make its own regulations for building, construction and development
9. The Apex Authority will be the single window system and the first contact for the setting up any economic activity or amenity in the SIR
10. The SIR Act empowers the state government for setting up of a Project Development Agency
11. Government has already formed such a project development company in the name of “Gujarat Industrial Corridor Company” (GICC)
12. It provides for effective internal dispute settlement mechanism by a three-tier system
13. It provides an effective framework for private sector participation in infrastructure by drawing upon the Gujarat Infrastructure Development Act (GID) Act – 1999