Flextronics Secures Approval To Partially De-notify Sriperumbudur SEZ

30 Mar 2026 CW Team

Flextronics Technologies India has secured approval from the Board of Approval for Special Economic Zones under the Union commerce and industry ministry to partially de-notify a segment of its SEZ land in Tamil Nadu. The decision responds to prolonged export headwinds and policy shifts that have reduced the utilisation of the Sriperumbudur facility. Officials described the move as a measure to enable repurposing of underutilised parcels while preserving the company’s broader SEZ presence.

The Board approved carving out 15.42 hectares from a 76.14-hectare special economic zone at the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) Industrial Park in Sriperumbudur. Capacity utilisation at the facility has fallen to below 10 per cent since the Covid-19 pandemic, prompting reassessment of incentives and land use. The diminishing relevance of SEZ-linked tax incentives contributed to the company’s decision to seek de-notification.

The Tamil Nadu government recommended the partial de-notification to allow the company to repurpose underutilised land, according to meeting minutes accessed by local media. A site inspection on December 18, 2025, by officials from the Office of the Development Commissioner, Madras Export Processing Zone, together with state revenue authorities, found that the parcel identified for de-notification had no operational units. Inspectors also noted that no tax or duty benefits had been availed on the land.

Officials established that the remaining zone would continue to meet contiguity requirements under the SEZ Rules, 2006, and that Flextronics would retain its letter of approval and SEZ status. Flextronics will continue to operate as developer for the remaining area alongside the SIPCOT, which will act as co-developer. The approval is expected to enable more efficient land use within the park and allow the company to pursue alternative commercial or industrial purposes for the carved-out parcel.

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