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).
• 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.
• It enables the State Government to establish, develop, operate and regulate the Special Investment Regions (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 .