New Delhi | Lieutenant Governor V K Saxena on Friday approved setting up of a Special Economic Zone (SEZ) and Free Trade Zone (FTZ) at the IGI Airport over an area of five acres, officials said.

"The SEZ would create economic activities through exports, warehousing, trading and provisions for related services at the airport complex," a statement from LG office said.

The move will reduce procedural complexities in terms of applications, licensing, clearances and other regulations, as well as provide tax benefits to entrepreneurs, it said.

According to the notification, this move will boost the logistics sector and catalyse the economic growth apart from generating employment.

"The Ministry of Civil Aviation, GoI has identified Delhi as a Pilot Air Cargo Hub which requires Tier 1, 2 and 3 level infrastructure while DIAL already has developed Tier 1 and 2 infrastructure by way of developing two cargo terminals and logistics centres at the Airport, it will achieve Tier 3 once an SEZ / FTZ comes up at the Airport complex," the statement from LG office read.