CONSTITUTION OF BOARD OF APPROVALCentral
Section 8 of The Special Economic Zones Act, 2005
- (1)The Central Government shall, within fifteen days of the commencement of this Act, by notification, constitute, for the purposes of this Act, a Board to be called the Board of Approval.
- (2)The Board shall consist of--
- (a)an officer not below the rank of an Additional Secretary to the Government of India in the Ministry or Department of the Central Government dealing with commerce--Chairperson, ex officio;
- (b)two officers, not below the rank of a Joint Secretary to the Government of India, to be nominated by the Central Government to represent the Ministry or Department of the Central Government dealing with revenue--Members, ex officio;
- (c)one officer not below the rank of a Joint Secretary to the Government of India to be nominated by the Central Government to represent the Ministry or Department of the Central Government dealing with economic affairs (financial services) --Member, ex officio;
- (d)such number of officers, not exceeding ten, not below the rank of the Joint Secretary to the Government of India, to be nominated by the Central Government to represent the Ministries or Departments of the Central Government dealing with commerce, industrial policy and promotion, science and technology, small scale industries and agro and rural industries, home affairs, defence, environment and forests, law, overseas Indian affairs and urban development --Members, ex officio;
- (e)a nominee of the State Government concerned--Member, ex officio;
- (f)the Director General of Foreign Trade or his nominee--Member, ex officio;
- (g)the Development Commissioner concerned--Member, ex officio;
- (h)a Professor in the Indian Institute of Management, being a society registered under the Societies Registration Act, 1860 (21 of 1860) or the Indian Institute of Foreign Trade, being a society registered under the Societies Registration Act, 1860, as may be, nominated by the Central Government--Member, ex officio;
- (i)an officer not below the rank of Deputy Secretary to the Government of India dealing with the Special Economic Zones in the Ministry or Department of the Central Government, dealing with commerce to be nominated by the Central Government--Member-Secretary, ex officio: Provided that the member, being the Joint Secretary, nominated under clauses (b) to (d) of this sub-section may, if he is unable to attend the meeting of the Board, authorise any other officer to attend the meeting of the Board on his behalf.
- (3)The term of office of an ex officio Member shall come to an end as soon as he ceases to hold the office by virtue of which he was so nominated.
- (4)For the purposes of performing its functions, the Board may co-opt as members, such number of persons as it deems fit, who have special knowledge of, and practical experience in, matters relating to, or relevant to activity connected with the Special Economic Zones and any such person shall have the right to take part in the discussions of the Board but shall not be counted for the quorum and shall not be a member for any other purpose and such person shall be entitled to receive such allowances or fees, as the case may be, fixed by the Board.
- (5)The Board shall meet at such times and places as may be appointed by it and shall have the power to regulate its own procedure.
- (6)One-third of the total Members of the Board shall form a quorum, and all the acts of the Board shall be decided by a general consensus of the Members present.
- (7)No act or proceeding of the Board shall be called in question on the ground merely of existence of any vacancy in, or any defect in the constitution of, the Board.
- (8)All orders and decisions of the Board and all other instruments issued by it shall be authenticated by the signature of the Member-Secretary, or any other Member as may be authorised by the Board in this behalf.
Summary
- The Central Government must set up a group called the Board of Approval within fifteen days of the Act starting.
- The Board consists of many ex officio members, which means members by virtue of their office, and is headed by a Chairperson who is at least an Additional Secretary in the Ministry of Commerce.
- Members include officers from several Central ministries of Joint Secretary rank, a State Government nominee, the Director General of Foreign Trade, and the local Development Commissioner.
- Joint Secretary members can authorize another officer to attend meetings on their behalf if they cannot attend.
- The Board can bring in co-opted members who have special knowledge, but they do not count toward a quorum and cannot vote.
- The quorum for a meeting is one-third of the total members, and the Board makes all decisions through general consensus.
Practical examples
1On June 30, 2026, the Board of Approval holds a meeting to discuss a new zone proposal. Amit, a Joint Secretary from the Ministry of Home Affairs, is busy with other work and cannot attend, so he formally authorizes a Deputy Secretary from his department to attend and participate in his place.
2During a Board meeting on November 12, 2026, the members discuss a complex logistics issue. The Chairperson co-opts Dr. Meera, a private supply-chain logistics expert with twenty years of experience, to guide the discussion, though Dr. Meera does not vote or count toward the quorum.
FAQ
1. How are decisions made by the Board of Approval?
All acts and decisions of the Board must be decided by a general consensus of the members who are present at the meeting.
2. What is the quorum required for a meeting of the Board of Approval?
One-third of the total members of the Board of Approval must be present to form a quorum for a meeting.
3. Can a member of the Board of Approval who is a Joint Secretary send someone else to a meeting?
Yes, if a Joint Secretary member nominated from the ministries under clauses (b) to (d) is unable to attend, they can authorize another officer to attend the meeting on their behalf.
Test yourself
Q1.Under Section 8 of The Special Economic Zones Act, 2005, what is the deadline for the Central Government to establish the Board of Approval?
Q2.Under Section 8 of The Special Economic Zones Act, 2005, which of the following is true regarding a co-opted member of the Board of Approval?
Q3.Under Section 8 of The Special Economic Zones Act, 2005, what proportion of the total members of the Board of Approval is required to form a quorum for its meetings?
Q4.Under Section 8 of The Special Economic Zones Act, 2005, how are decisions and actions of the Board of Approval decided?