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BY: FURKAN KAMDAR
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INTRODUCTION
A Special Economic Zone (SEZ) is ageographical region that has economic laws
that are more liberal than a country's typicaleconomic laws.
'SEZ' covers a broad range of zone eg.
Free Trade Zones (FTZ)
Export Processing Zones (EPZ)
Free Zones (FZ)
Industrial Estates (IE)
INTRODUCTION
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Considering the need to enhance foreigninvestment and promote exports from the
country and realizing the need that alevel playing field must be madeavailable to the domestic enterprises andmanufacturers to be competitive globally.
The Government ofINDIA had in April
2000 announced the introduction ofSpecial Economic Zones policy in thecountry
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A designated duty free enclave and to betreated as foreign territory for tradeoperations and duties and tariff
. . . . EXIM Policy 2000, Chapter 9 para 30
Extremely successful Chinese format topromote exports
No license required for import
Manufacturing, trading or service activityallowed
SALIENT FEATURES
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No fixed wastage norm
Duty free goods to be utilized in 5 years
SEZ unit to be positive net foreignexchange earner within three years
Performance of the units to be monitored
by a Committee headed by DevelopmentCommissioner and consisting ofCustoms
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Job work on behalf of domestic exporters for
direct exports allowed
Contract farming allowed agriculture/
horticulture units
No routine examination by Customs of
export & import cargo
No separate documentation required for
Customs and Exim Policy
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To enable creation of a world-class environment, SEZs
includes the following facilities:
Business commercial offices and buildings
Living Residential and social areas
Learning Schools, Colleges, Institutions and Centres of
Excellence
Healthcare Specialized and primary healthcare facilities
Recreation
Theme Parks, Restaurants, Hotels, GolfCourses
Utilities Efficient and reliable power, water, waste
management & technology facilities
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(Current Data) (as of 30.6. 2008)
Chairman: Secretary, Department ofCommerce(MR. GOPAL KRISHNA PILLAI)
1.Total employment in SEZs: 3,49,203 Lakhpersons
2. Total investment in Special Economic Zones
as of 30.6. 2008: Rs. 81093 crore
3. Increase in exports over four years (2003-04
2007-08) : 381%
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100% FDI allowed for : townships and
recreational facilities on a case to case basis,
franchise for basic telephone service in SEZ
Income Tax Benefit under (80 IA) to developers
for any block of 10 years in 15 years
Exemption from Service Tax
FACILITIES TO SEZ DEVLOPERS
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Income of infrastructure capital
fund/company from investment in SEZ
exempt from Income Tax
Investment made by individuals etc in a SEZcompany also eligible for exemption u/s 88 of
IT Act
Developer permitted to transfer infrastructure
facility for operation and maintenance
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Generation, transmission and distribution of
power in SEZs allowed
Duty free import/domestic procurement of
goods for development, operation andmaintenance of SEZs
Full freedom in allocation of space and built up
area to approved SEZ units on commercial
basis
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Authorized to provide service like water,
electricity, security, restaurants and recreation
centers on commercial lines.
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Special Economic Zones: Opportunities
Opportunity to rural masses to shift fromagriculture to manufacturing & service sector
reducing burden on the agriculture.
Employment opportunity improve the morale &
economic conditions of the poor landless
farmer/ labour.
Increase awareness, competitiveness &
Adaptability.
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Waste Land Utilization generate income to the
govt leading more investment in the area.
International Market come at doorsteps.
Infrastructural support provide amicable
solution to the problems of sustainable
development.
Generation of economic activity reduce the
possibility of family holding & employment in
disguise.
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Special Economic Zones: Fear
Fertile land is taken by SEZ reduce thecultivable land.
Inadequate enforcement of scheme ofresettlement cause social destitution.
No confirm mechanism of establishingSEZs led to fear psychosis amongvillagers.
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Small & Marginal Farmers may turn landless.
Source of livelihood may be snatched by
corporate & capitalist.
Immigration may alter the natural resource
capital and spoil the cultural identity.
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Special Economic Zones: Remedies
Establish SEZs on waste land.
Establish SEZ as per the nature of resources in
the area.
SEZs will provide avenues for resource
mobilization.
Establish SEZs for development not forretrenchment.
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Land acquisition and resettlement will be
properly addressed to the grievances ofthe farmers.
Agribusiness & processing activities mustbe promoted through SEZs.
Proper attention paid for sustainableenvironment.
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Establish in tune with the aspects of Rural
Development.
Make it an opportunity to develop Rural
Tourism.
Ensure fuller participation of the persons from
the area.
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SEZs approved in IndiaSEZs approved in India
State Location
Maharashtra MahaMumbai, Dronagiri
Tamil Nadu Nanguneri
Gujarat Positra
Andhra
PradeshKakinada
Madhya
PradeshIndore
Orissa Paradeep, Gopalpur
Uttar
PradeshKanpur and Greater Noida
West Bengal Kulpi
Karnataka Hassan
Converted
Greenfield
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Implementation by StatesIMPLEMENTATION BYSTATES
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FEB 2006 OCT 2007
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Year Value (Rs. Crore) Growth Rate(over previous
year )
2003-2004 13,854 39%
2004-2005 18,314 32%
2005-2006 22 840 25%
2006-20007 34,615 52%
- - -
Exports from the functioningSEZs
during the last four years are:
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SEZs are of National and State levelimportance
Each SEZ represents an integratedmanagement of several infrastructurefacilities at one location
SEZs has been pioneering theIndustrialization through Industrial Estate
In Conclusion
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