CONCEPT OF SPECIAL ECONOMIC ZONE The Special Economic

CONCEPT OF SPECIAL ECONOMIC ZONE The Special Economic Zones Policy was announced in April 2000 with the objective of making the Special Economic Zones an engine for economic growth, supported by quality infrastructure. The prime objective was to enhance foreign investment and provide an internationally competitive and hassle free environment for exports. The idea was to promote exports from the country and realizing the need.

CONCEPT OF SPECIAL ECONOMIC ZONE Special Economic Zone (SEZ) is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. SEZ is a geographical region that has economic laws different from a country's typical economic laws.

OBJECTIVES OF SPECIAL ECONOMIC ZONE (SEZ) Creation of Economic enclave to cater overseas market. Attracting Foreign Direct Investment of domestic and foreign. Development of world class infrastructure facilities. Significant Foreign Exchange Earnings through exports.

OBJECTIVES OF SPECIAL ECONOMIC ZONE (SEZ) Generation of employment opportunities. Advanced technologies of production of goods and services. Development of the export base. Import substitution. Development of new markets.

SCOPE OF SPECIAL ECONOMIC ZONE This Act may be called the Special Economic Zones Act, 2005. Ø It extends to the whole of India. Ø It shall come into force on such date as the Central Government may, by notification in the Official Gazette. Ø This Act shall be construed as a reference to the coming into force of that provision. Ø

PROCEDURE FOR PROPOSAL OF SEZ A Special Economic Zone may be established under this Act, either jointly or severally by the Central Government, State Government, or any person for manufacture of goods or rendering services or for both or as a Free Trade and Warehousing Zone. Any person, who intends to set up a Special Economic Zone, may, after identifying the area, make a proposal to the State Government concerned for the purpose of setting up the Special Economic Zone

PROCEDURE FOR PROPOSAL OF SEZ Notwithstanding anything contained in subsection (2), any person, who intends to set up a Special Economic Zone, may, after identifying the area, at his option, make a proposal directly to the Board for the purpose of setting up the Special Economic Zone. In case a State Government intends to set up a Special Economic Zone, it may after identifying the area, forward the proposal directly to the Board for the purpose of setting up the Special Economic Zone.

PROCEDURE FOR PROPOSAL OF SEZ Every proposal under sub-sections (2) to (4) shall be made in such form, and, manner, containing such particulars as may be prescribed. The State Government may, on receipt of the proposal made under sub-section (2), forward the same together with its recommendations to the Board within such period as may be prescribed. Without prejudice to the provisions contained in sub-section (8), the Board may, after receipt of the proposal under subsections (2) to (4), approve the proposal subject.

PROCEDURE FOR PROPOSAL OF SEZ The Central Government may prescribed the following requirements for establishment of a Special Economic Zone. The Central Government shall, on receipt of communication under clause (a) or clause (b) of sub-section (9), grant, within such time as may be prescribed, a letter of approval on such terms and conditions and obligations.

BENEFITS OF SPECIAL ECONOMIC ZONE (SEZ) 1. Income tax holiday for 15 years 100% for the first five years 50% for the next five years 50% for the following five years on plough back of profits. 2. Export benefits as admissible under the Foreign Trade Policy as though the goods have been exported out of India.

BENEFITS OF SPECIAL ECONOMIC ZONE (SEZ) 3. Exemption from service tax. 4. Single window clearances. 5. Exemption on stamp duty and land registration charges. 6. 100% foreign direct investment permitted. 7. Repatriation of profits without dividend balancing permitted.

BENEFITS OF SPECIAL ECONOMIC ZONE (SEZ) 8. Flexibility to keep 100% of export proceeds in EEFC account. 9. External commercial borrowings by units up to $ 500 million a year allowed without any maturity restriction. 10. Import raw materials and capital goods for authorised operations without payment of customs duty.