CHENNAI: Flextronics Technologies India has secured approval to partially de-notify its special economic zone (SEZ) land in Tamil Nadu, as export headwinds and policy shifts weigh on utilisation.
The Board of Approval for SEZs, under the Union commerce and industry ministry, has cleared the company’s proposal to carve out 15.42 hectares from its 76.14-hectare SEZ at the SIPCOT Industrial Park in Sriperumbudur.
The move comes amid a sharp decline in export orders since the Covid-19 pandemic, which has pushed capacity utilisation at the facility to below 10 per cent, according to official sources. The waning relevance of SEZ-linked tax incentives has also factored into the decision.
The Tamil Nadu government had recommended the partial de-notification, backing the company’s attempt to repurpose underutilised land, according to the Minutes of the Meeting accessed by TNIE.
Flextronics will continue to operate as a developer for the remaining SEZ area, alongside co-developer State Industries Promotion Corporation of Tamil Nadu (SIPCOT).
A site inspection carried out on December 18, 2025, by officials from the Office of the Development Commissioner, Madras Export Processing Zone, along with state revenue authorities, confirmed that the parcel identified for de-notification had no operational units. Officials also noted that no tax or duty benefits had been availed on the land.
Authorities further established that the SEZ would continue to meet contiguity requirements after the carve-out, a key condition under the SEZ Rules, 2006.
The Board said the approval would not affect the company’s SEZ status, with Flextronics retaining its letter of approval and continuing as part of the SEZ ecosystem.