Special Economic
Zones (SEZs) are being established in various parts of the country
in order to promote investments in export oriented activities.
The major differences between Export Processing Zones (EPZs)
and Special Economic Zones (SEZs) are (i) no minimum export
performance stipulation for SEZ units, (ii) domestic sales on
payment of fully duty allowed for SEZ units against a ceiling
of 50% of exports for EPZ units (iii) retention of 100% export
earnings by SEZ units in EEFC account; for EPZs this is restricted
to 70% (iv) simplified custom and central excise procedure in
SEZs.
Government had
announced a SEZ Scheme in April 2000. The scheme envisages setting
up of SEZ in the public, private, joint sectors or by the State
Governments. Further, the existing EPZs could also be converted
into SEZs. In accordance with the above policy, 8 existing
EPZs are located at Santa Cruz (Maharashtra), Cochin (Kerala),
Kandla and Surat (Gujarat), Chennai (Tamil Nadu), Visakhapatnam
(Andhra Pradesh), Falta (West Bengal) and NOIDA (Uttar Pradesh)
have been converted into SEZs.
Based on detailed
project reports submitted by the State Governments/private promoters,
3 new SEZs have been formally approved. In addition, ‘in
principle’ approval has been granted for setting up of 14 new
SEZs. Since the SEZs have been approved for establishment
in the private/joint sector/by the State Governments, it is
not possible to indicate a time frame for operationalisation
of the Zones. This was stated by Shri Rajiv Pratap Rudy, Minister
of State for Commerce & Industry, in a written reply in
the Rajya Sabha today.
