Tripura’s first special economic zone (SEZ) will be set up at Paschim Jalefa, Sabroom, the Centre said on Wednesday.

A news release from Press Information Bureau, New Delhi, read the sector specific economic zone for agro-based food processing will be set-up at Sabroom in South Tripura, 130km from here.

With an estimated cost of Rs 1,550 crore, the SEZ will be developed by Tripura Industrial Development Corporation Ltd. It is estimated to generate 12,000 skilled jobs. Rubber-based industries, textile and apparel industries, bamboo and agri-food processing industries will be set-up in the SEZ which will open up new avenues to attract private investment considering the proximity of Chittagong port and the ongoing construction of a bridge across Feni river, the release added.

“Hundred per cent income tax will be exempted on export income for the SEZ units under Section 10AA of the Income Tax Act for the first five years. Also, 50 per cent tax exemption will be provided for the next five years,” it said.

“A proposal to set up the agro-based SEZ at Sabroom was submitted to the development commissioner, Falta SEZ, in June this year,” the notification issued by the directorate of industries and commerce said.

It takes at least 25 acres of land to set up a SEZ according to guidelines. But the land available at Sabroom is less than required.

The land available with the Tripura government is 16.35 hectares. Steps have been initiated to acquire another 11 hectares.

The state government has sought relaxation on the land requirement and hopes to resolve the issue with support from Niti Aayog.