GOVERNMENT NOTIFIES
CONVERSION OF FOUR EPZs INTO SEZs FROM
JANUARY 1, 2003
The
Government has issued notifications for conversion
of the four Export Processing
Zones (EPZs) at Noida (Uttar Pradesh), Falta (West Bengal), Chennai
(Tamil Nadu) and Visakhapatnam (Andhra Pradesh) into Special Economic
Zones (SEZs) with effect from 1.1.2003. In addition to this, three
formal approvals and 14 in-principle approval have also been granted
for establishment of SEZs in private/state/joint sector. Export
performance of the SEZs/EPZs during the period April-November,
2002
was of the order of 5380.97 crore as compared to 4936.42 cores
during the corresponding period of pervious year representing
a growth of 9%.
Some
of the recent policy initiatives taken to promote SEZs include:
- Duty-free import/domestic procurement
of goods for development, operation and maintenance of SEZs
and SEZ units;
- External commercial borrowing
by SEZ units up to US $ 500 million in a year without any maturity
restriction through recognized banking channels;
- Facility to set up of Overseas
Banking units in SEZs;
- 100% FDI to SEZ franchisee in
providing basic telephone service in SEZs;
- Exemption from Central Sales Tax
on sales made from Domestic Tariff Area to SEZ units; and
- Exemption from Service Tax to
SEZ units and developers.
The Government
had earlier announced a Special Economic Zones (SEZs) Scheme in
April, 2000 to promote exports from the country. The policy provided
for setting up of SEZs in the public, private, joint sector or
by State Governments. It was also announced that the existing
Export Processing Zones could be converted into Special Economic
Zones. Accordingly, four Export Processing Zones (EPZs) had been
converted in to Special Economic Zones (SEZs) with effect from
1.11.2000.
