SEZ SEZ Policy Sonu dua Faculty LPU SEZ

SEZ & SEZ Policy Sonu dua Faculty - LPU

SEZ in India - Background n n n Asia’s 1 st Export Processing Zone (EPZ) was set up in Kandla (Gujarat) in 1965. SEZ policy was announced in 2000 SEZs in India functioned from 1. 11. 2000 to 09. 02. 2006 under the provisions of the Foreign Trade Policy

SEZ Policy - The EXIM Policy (1997 -2002) introduced a new scheme from April 1, 2000 for establishment of the Special Economic Zones (SEZs) in different parts of the country. As per the policyn SEZs are permitted to be set up in the public, private, joint sector or by the State Governments with a minimum size of 1000 hectares. n The number of incentives both fiscal and non fiscal has also been extended to the units operating in SEZs.

As Per SEZ Policy n n From November 1, 2000 the Export Processing Zones at Kandla, Santa Cruz (Mumbai), Cochin and Surat have been converted into SEZs. In 2003, other existing EPZs namely, Noida, Falta, Chennai, Vizag were also converted into SEZs.

Benefits in SEZs n n n Exemption from Central Sales Tax. Exemption from Service Tax. Single window clearance for Central and State level approvals.

Special Economic Zone Act 2005 n n The Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 which received Presidential assent on the 23 rd of June, 2005. The SEZ Act, 2005, supported by SEZ Rules, came into effect on 10 th February, 2006, providing for drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments.

Main Objectives of SEZs n n Promotion of exports of goods and services Promotion of investment from domestic and foreign sources Creation of employment opportunities Development of infrastructure facilities

About SEZ Rules n The SEZ Rules provide for different minimum land requirement for different class of SEZs.

Approval Mechanism n n n The developer submits the proposal for establishment of SEZ to the concerned State Government. The State Government has to forward the proposal with its recommendation within 45 days from the date of receipt of such proposal to the Board of Approval. The applicant also has the option to submit the proposal directly to the Board of Approval.

Administrative Setup of SEZs n n n The Board of Approval has been constituted by the Central Government in exercise of the powers conferred under the SEZ Act. All the decisions are taken in the Board of Approval by consensus. The Board of Approval has 19 Members.

Export Performance of SEZ

Export Performance of SEZ