SPECIAL ECONOMIC
ZONES – AN UPDATE
Three
Export Processing Zones (EPZs) set up by the Central Government
at Santa Cruz (Maharashtra), Cochin (Kerala) and Kandla (Gujarat)
and a private sector EPZ located at Surat (Hujarat) have been
converted into Special Economic Zones (SEZs) on 1/11/2000 which
are functional. As per the policy, the central government is not
to set up any new SEZs. In addition, approval has been given for
setting up of 13 SEZs at Positra (Gujarat) by M/s. Gujarat Positra
Port Infrastructure Limited in the joint sector and by the Government
of Maharashtra at Navi Mumbai (Maharashtra), Nanguneri (Tamil
Nadu), Kulpi and Salt Lake (West Bengal), Paradeep and Gopalpur
(Orissa), Bhadohi, Kanpur and Greater Noida (U.P.), Kakinada (Andhra
Pradesh), Indore (Madhya Pradesh) and Hassan (Karnataka) on the
basis of proposals received from them.
Incentives
offered under SEZ scheme include duty-free importation/domestic
procurement of goods for development of SEZ and setting up of
unit, 100% foreign direct investment in manufacturing sector under
automatic route, 100% income tax exemption for first 5 years and
50% tax for 2 years thereafter, sub-contracting of part of production
abroad, reimbursement/exemption of Central Sales Tax on domestic
purchases by the SEZ units, retention of 100% foreign exchange
earnings in Exchange Earners Foreign Currency Account and procedural
simplification of operation like record keeping etc.
Entrepreneurial
response, including from foreign companies, in setting up units
in the SEZ is encouraging.
Since
SEZs mentioned above have been approved for establishment in the
joint sector / by the State Government recently, it would not
be possible to indicate time frame for commencement of operation
by these SEZs. This was stated by Shri Rajiv Pratap Rudy, Minister
of State for Commerce & Industry, in a written reply in the
Lok Sabha today.
