SIR ACT 2009

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:

  • It enables the State Government to establish, develop, operate and regulate the Special Investment Regions (SIR)
  • The Government is empowered to declare Investment Regions or Industrial Areas and designate them as Special Investment Regions (SIR)
  • 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.
  • A four tier administrative mechanism is set up for establishment, operation, regulation and management of the SIRs
  • 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
  • The Apex Authority will be the highest policy making body
  • RDA will look after the ground level issue of development & regulation
  • RDA will make its own regulations for building, construction and development
  • 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
  • The SIR Act empowers the state government for setting up of a Project Development Agency
  • Government has already formed such a project development company in the name of “Gujarat Industrial Corridor Company” (GICC)
  • It provides for effective internal dispute settlement mechanism by a three-tier system
  • It provides an effective framework for private sector participation in infrastructure by drawing upon the Gujarat Infrastructure Development Act (GID) Act – 1999