1
KARNATAKA LAND OF OPPORTUNITIES
Study on Developing a Multi product Agro SEZ in Karnataka
Presented by FAROOK A AZAM
MD BIG wwwbiginfranet
2
Presentation flow Why this project
Objective
Agricultural scenario in INDIA
Data Collection
Location considered for project
Project highlights
SWOT analysis
3
Why this project
BANGLADESH 4226239
U ARAB EMTS 2974591
MALAYSIA 1851599NETHERLAND 968552
UK 1055057
PAKISTAN 494771
SRI LANKA 1085744
NEPAL 555943
SAUDI ARA-BIA 457753
USA 203350
KUWAIT 218242
GERMANY 338224
BAHRAIN 246043
SPAIN 279113
QATAR 127809
SINGAPORE 179591
FRANCE 97259
MAURITIUS 170305
OMAN 89979
EGYPT A RP 192295
CANADA 87645
MALDIVES 51889
BELGIUM 178805
INDONESIA 13481
RUSSIA 66086GREECE 88703 ITALY 13944 PHILIPPINES 31601 CHINA P RP 020 UNSPECIFIED 17776AUSTRALIA 25019 NORWAY 9312 REUNION 30748 BRUNEI 25603 SWITZERLAND 31997 SEYCHELLES 10345DENMARK 62623 JAPAN 61844 SWEDEN 27019 NEW ZEALAND 14494 TAIWAN 28992CYPRUS 10945YEMEN REPUBLC 23575IRAN 28319 BAHAMAS 9192 HONG KONG 23414 PORTUGAL 10921LITHUANIA 6294AUSTRIA 21536LATVIA 1994 THAILAND 789IRELAND 4857 TUNISIA 2584 UKRAINE 5713JORDAN 2388SUDAN 15447SOUTH AFRICA 3423ISRAEL 21209BRAZIL 1776ALGERIA 3617 COMOROS 2104 IRAQ 328 UGANDA 897 KENYA 1243 LEBANON 911NIGER 029AFGHANISTAN 116POLAND 2918VIETNAM SOC REP 4449ESTONIA 1061TURKEY 035ICELAND 988TANZANIA REP 056CONGO P REP 024BULGARIA 312ZAMBIA 016KIRIBATI REP 079GUINEA 029MACAO 046KOREA RP 4789NIGERIA 155HUNGARY 326FIJI IS 380AMERI SAMOA 073SOMALIA 9252BOSNIA-HRZGOVIN 1142ARGENTINA 5252GHANA 570MALI 453MALTA 2527GAMBIA 005MOROCCO 1256MEXICO 003NAMIBIA 057NORFOLK IS 126LIBYA 382SLOVAK REP 045ST VINCENTGRE 006ST HELENA 25099ST KITTS NEVIS 042SWAZILAND 2859TAJIKISTAN 035CANARY ISLAND 3039CROATIA 001CONGO D REP 024ALBANIA 161BELIZE 056AZERBAIJAN 019FINLAND 2614FRENCH POLYNESIA 1286ERITREA 057DOMINIC REP 2306GUATEMALA 1160KAZAKHSTAN 002URUGUAY 4154TRINIDAD 224
4
QTY(2005-2006) QTY(2006-2007) QTY(2007-2008)
India Exports Statistics Major Product Group 148061375 200285738 17245736
25000000
75000000
125000000
175000000
225000000
India Exports Statistics Major Product GroupIn
lakh
s
Source MOSPI
5
Objective
Is to create employment in rural Karnataka
Generate Business opportunity for agriculture sector in
global market
To create demand and design a marketing strategy for
agriculture products
Setting up of Agro Multiproduct SEZ for Sustainable
development in Agriculture sector
6
Data Collection National sample survey report Economic survey reports Ministry of commerce amp Industry department of commerce Directorate of economic and statistics GOK Planning commission (11th five year plan vol -II) India Agro Industry Directorate of census Operations Karnataka Karnataka statistics statement from GOK site visit SEZ
7
Location Considered for the project
Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)
8
9
10
Why these 4 districts
bull All the four are connected with National highways ie (NH-48 and NH-4)
bull All the four are well connected with Rail link
bull Hassan and Hubli districts are having airstrip
bull Economical and well educated manpower available
bull Number of Educational Institutions polytechnics Engineering colleges and
Technical training institutes
bull All the four are having well irrigated land
bull The agricultural output is good when compare to other districts in the state
bull Favourable weather condition
bull Favourable State Govt Policies till date
bull Situated midway to Mangalore and Bangalore
11
Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like
roads structures and facility parking lots and weighing bridges and cranes etc
bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS
bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh
bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc
bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers
bull Going to rope all the farmers to enjoy the benefits of the project to the max
bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ
bull Creating a Marketing Block for the Agricultural products and sales
Conditions apply
12
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
2
Presentation flow Why this project
Objective
Agricultural scenario in INDIA
Data Collection
Location considered for project
Project highlights
SWOT analysis
3
Why this project
BANGLADESH 4226239
U ARAB EMTS 2974591
MALAYSIA 1851599NETHERLAND 968552
UK 1055057
PAKISTAN 494771
SRI LANKA 1085744
NEPAL 555943
SAUDI ARA-BIA 457753
USA 203350
KUWAIT 218242
GERMANY 338224
BAHRAIN 246043
SPAIN 279113
QATAR 127809
SINGAPORE 179591
FRANCE 97259
MAURITIUS 170305
OMAN 89979
EGYPT A RP 192295
CANADA 87645
MALDIVES 51889
BELGIUM 178805
INDONESIA 13481
RUSSIA 66086GREECE 88703 ITALY 13944 PHILIPPINES 31601 CHINA P RP 020 UNSPECIFIED 17776AUSTRALIA 25019 NORWAY 9312 REUNION 30748 BRUNEI 25603 SWITZERLAND 31997 SEYCHELLES 10345DENMARK 62623 JAPAN 61844 SWEDEN 27019 NEW ZEALAND 14494 TAIWAN 28992CYPRUS 10945YEMEN REPUBLC 23575IRAN 28319 BAHAMAS 9192 HONG KONG 23414 PORTUGAL 10921LITHUANIA 6294AUSTRIA 21536LATVIA 1994 THAILAND 789IRELAND 4857 TUNISIA 2584 UKRAINE 5713JORDAN 2388SUDAN 15447SOUTH AFRICA 3423ISRAEL 21209BRAZIL 1776ALGERIA 3617 COMOROS 2104 IRAQ 328 UGANDA 897 KENYA 1243 LEBANON 911NIGER 029AFGHANISTAN 116POLAND 2918VIETNAM SOC REP 4449ESTONIA 1061TURKEY 035ICELAND 988TANZANIA REP 056CONGO P REP 024BULGARIA 312ZAMBIA 016KIRIBATI REP 079GUINEA 029MACAO 046KOREA RP 4789NIGERIA 155HUNGARY 326FIJI IS 380AMERI SAMOA 073SOMALIA 9252BOSNIA-HRZGOVIN 1142ARGENTINA 5252GHANA 570MALI 453MALTA 2527GAMBIA 005MOROCCO 1256MEXICO 003NAMIBIA 057NORFOLK IS 126LIBYA 382SLOVAK REP 045ST VINCENTGRE 006ST HELENA 25099ST KITTS NEVIS 042SWAZILAND 2859TAJIKISTAN 035CANARY ISLAND 3039CROATIA 001CONGO D REP 024ALBANIA 161BELIZE 056AZERBAIJAN 019FINLAND 2614FRENCH POLYNESIA 1286ERITREA 057DOMINIC REP 2306GUATEMALA 1160KAZAKHSTAN 002URUGUAY 4154TRINIDAD 224
4
QTY(2005-2006) QTY(2006-2007) QTY(2007-2008)
India Exports Statistics Major Product Group 148061375 200285738 17245736
25000000
75000000
125000000
175000000
225000000
India Exports Statistics Major Product GroupIn
lakh
s
Source MOSPI
5
Objective
Is to create employment in rural Karnataka
Generate Business opportunity for agriculture sector in
global market
To create demand and design a marketing strategy for
agriculture products
Setting up of Agro Multiproduct SEZ for Sustainable
development in Agriculture sector
6
Data Collection National sample survey report Economic survey reports Ministry of commerce amp Industry department of commerce Directorate of economic and statistics GOK Planning commission (11th five year plan vol -II) India Agro Industry Directorate of census Operations Karnataka Karnataka statistics statement from GOK site visit SEZ
7
Location Considered for the project
Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)
8
9
10
Why these 4 districts
bull All the four are connected with National highways ie (NH-48 and NH-4)
bull All the four are well connected with Rail link
bull Hassan and Hubli districts are having airstrip
bull Economical and well educated manpower available
bull Number of Educational Institutions polytechnics Engineering colleges and
Technical training institutes
bull All the four are having well irrigated land
bull The agricultural output is good when compare to other districts in the state
bull Favourable weather condition
bull Favourable State Govt Policies till date
bull Situated midway to Mangalore and Bangalore
11
Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like
roads structures and facility parking lots and weighing bridges and cranes etc
bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS
bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh
bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc
bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers
bull Going to rope all the farmers to enjoy the benefits of the project to the max
bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ
bull Creating a Marketing Block for the Agricultural products and sales
Conditions apply
12
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
3
Why this project
BANGLADESH 4226239
U ARAB EMTS 2974591
MALAYSIA 1851599NETHERLAND 968552
UK 1055057
PAKISTAN 494771
SRI LANKA 1085744
NEPAL 555943
SAUDI ARA-BIA 457753
USA 203350
KUWAIT 218242
GERMANY 338224
BAHRAIN 246043
SPAIN 279113
QATAR 127809
SINGAPORE 179591
FRANCE 97259
MAURITIUS 170305
OMAN 89979
EGYPT A RP 192295
CANADA 87645
MALDIVES 51889
BELGIUM 178805
INDONESIA 13481
RUSSIA 66086GREECE 88703 ITALY 13944 PHILIPPINES 31601 CHINA P RP 020 UNSPECIFIED 17776AUSTRALIA 25019 NORWAY 9312 REUNION 30748 BRUNEI 25603 SWITZERLAND 31997 SEYCHELLES 10345DENMARK 62623 JAPAN 61844 SWEDEN 27019 NEW ZEALAND 14494 TAIWAN 28992CYPRUS 10945YEMEN REPUBLC 23575IRAN 28319 BAHAMAS 9192 HONG KONG 23414 PORTUGAL 10921LITHUANIA 6294AUSTRIA 21536LATVIA 1994 THAILAND 789IRELAND 4857 TUNISIA 2584 UKRAINE 5713JORDAN 2388SUDAN 15447SOUTH AFRICA 3423ISRAEL 21209BRAZIL 1776ALGERIA 3617 COMOROS 2104 IRAQ 328 UGANDA 897 KENYA 1243 LEBANON 911NIGER 029AFGHANISTAN 116POLAND 2918VIETNAM SOC REP 4449ESTONIA 1061TURKEY 035ICELAND 988TANZANIA REP 056CONGO P REP 024BULGARIA 312ZAMBIA 016KIRIBATI REP 079GUINEA 029MACAO 046KOREA RP 4789NIGERIA 155HUNGARY 326FIJI IS 380AMERI SAMOA 073SOMALIA 9252BOSNIA-HRZGOVIN 1142ARGENTINA 5252GHANA 570MALI 453MALTA 2527GAMBIA 005MOROCCO 1256MEXICO 003NAMIBIA 057NORFOLK IS 126LIBYA 382SLOVAK REP 045ST VINCENTGRE 006ST HELENA 25099ST KITTS NEVIS 042SWAZILAND 2859TAJIKISTAN 035CANARY ISLAND 3039CROATIA 001CONGO D REP 024ALBANIA 161BELIZE 056AZERBAIJAN 019FINLAND 2614FRENCH POLYNESIA 1286ERITREA 057DOMINIC REP 2306GUATEMALA 1160KAZAKHSTAN 002URUGUAY 4154TRINIDAD 224
4
QTY(2005-2006) QTY(2006-2007) QTY(2007-2008)
India Exports Statistics Major Product Group 148061375 200285738 17245736
25000000
75000000
125000000
175000000
225000000
India Exports Statistics Major Product GroupIn
lakh
s
Source MOSPI
5
Objective
Is to create employment in rural Karnataka
Generate Business opportunity for agriculture sector in
global market
To create demand and design a marketing strategy for
agriculture products
Setting up of Agro Multiproduct SEZ for Sustainable
development in Agriculture sector
6
Data Collection National sample survey report Economic survey reports Ministry of commerce amp Industry department of commerce Directorate of economic and statistics GOK Planning commission (11th five year plan vol -II) India Agro Industry Directorate of census Operations Karnataka Karnataka statistics statement from GOK site visit SEZ
7
Location Considered for the project
Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)
8
9
10
Why these 4 districts
bull All the four are connected with National highways ie (NH-48 and NH-4)
bull All the four are well connected with Rail link
bull Hassan and Hubli districts are having airstrip
bull Economical and well educated manpower available
bull Number of Educational Institutions polytechnics Engineering colleges and
Technical training institutes
bull All the four are having well irrigated land
bull The agricultural output is good when compare to other districts in the state
bull Favourable weather condition
bull Favourable State Govt Policies till date
bull Situated midway to Mangalore and Bangalore
11
Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like
roads structures and facility parking lots and weighing bridges and cranes etc
bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS
bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh
bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc
bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers
bull Going to rope all the farmers to enjoy the benefits of the project to the max
bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ
bull Creating a Marketing Block for the Agricultural products and sales
Conditions apply
12
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
4
QTY(2005-2006) QTY(2006-2007) QTY(2007-2008)
India Exports Statistics Major Product Group 148061375 200285738 17245736
25000000
75000000
125000000
175000000
225000000
India Exports Statistics Major Product GroupIn
lakh
s
Source MOSPI
5
Objective
Is to create employment in rural Karnataka
Generate Business opportunity for agriculture sector in
global market
To create demand and design a marketing strategy for
agriculture products
Setting up of Agro Multiproduct SEZ for Sustainable
development in Agriculture sector
6
Data Collection National sample survey report Economic survey reports Ministry of commerce amp Industry department of commerce Directorate of economic and statistics GOK Planning commission (11th five year plan vol -II) India Agro Industry Directorate of census Operations Karnataka Karnataka statistics statement from GOK site visit SEZ
7
Location Considered for the project
Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)
8
9
10
Why these 4 districts
bull All the four are connected with National highways ie (NH-48 and NH-4)
bull All the four are well connected with Rail link
bull Hassan and Hubli districts are having airstrip
bull Economical and well educated manpower available
bull Number of Educational Institutions polytechnics Engineering colleges and
Technical training institutes
bull All the four are having well irrigated land
bull The agricultural output is good when compare to other districts in the state
bull Favourable weather condition
bull Favourable State Govt Policies till date
bull Situated midway to Mangalore and Bangalore
11
Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like
roads structures and facility parking lots and weighing bridges and cranes etc
bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS
bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh
bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc
bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers
bull Going to rope all the farmers to enjoy the benefits of the project to the max
bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ
bull Creating a Marketing Block for the Agricultural products and sales
Conditions apply
12
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
5
Objective
Is to create employment in rural Karnataka
Generate Business opportunity for agriculture sector in
global market
To create demand and design a marketing strategy for
agriculture products
Setting up of Agro Multiproduct SEZ for Sustainable
development in Agriculture sector
6
Data Collection National sample survey report Economic survey reports Ministry of commerce amp Industry department of commerce Directorate of economic and statistics GOK Planning commission (11th five year plan vol -II) India Agro Industry Directorate of census Operations Karnataka Karnataka statistics statement from GOK site visit SEZ
7
Location Considered for the project
Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)
8
9
10
Why these 4 districts
bull All the four are connected with National highways ie (NH-48 and NH-4)
bull All the four are well connected with Rail link
bull Hassan and Hubli districts are having airstrip
bull Economical and well educated manpower available
bull Number of Educational Institutions polytechnics Engineering colleges and
Technical training institutes
bull All the four are having well irrigated land
bull The agricultural output is good when compare to other districts in the state
bull Favourable weather condition
bull Favourable State Govt Policies till date
bull Situated midway to Mangalore and Bangalore
11
Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like
roads structures and facility parking lots and weighing bridges and cranes etc
bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS
bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh
bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc
bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers
bull Going to rope all the farmers to enjoy the benefits of the project to the max
bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ
bull Creating a Marketing Block for the Agricultural products and sales
Conditions apply
12
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
6
Data Collection National sample survey report Economic survey reports Ministry of commerce amp Industry department of commerce Directorate of economic and statistics GOK Planning commission (11th five year plan vol -II) India Agro Industry Directorate of census Operations Karnataka Karnataka statistics statement from GOK site visit SEZ
7
Location Considered for the project
Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)
8
9
10
Why these 4 districts
bull All the four are connected with National highways ie (NH-48 and NH-4)
bull All the four are well connected with Rail link
bull Hassan and Hubli districts are having airstrip
bull Economical and well educated manpower available
bull Number of Educational Institutions polytechnics Engineering colleges and
Technical training institutes
bull All the four are having well irrigated land
bull The agricultural output is good when compare to other districts in the state
bull Favourable weather condition
bull Favourable State Govt Policies till date
bull Situated midway to Mangalore and Bangalore
11
Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like
roads structures and facility parking lots and weighing bridges and cranes etc
bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS
bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh
bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc
bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers
bull Going to rope all the farmers to enjoy the benefits of the project to the max
bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ
bull Creating a Marketing Block for the Agricultural products and sales
Conditions apply
12
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
7
Location Considered for the project
Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)
8
9
10
Why these 4 districts
bull All the four are connected with National highways ie (NH-48 and NH-4)
bull All the four are well connected with Rail link
bull Hassan and Hubli districts are having airstrip
bull Economical and well educated manpower available
bull Number of Educational Institutions polytechnics Engineering colleges and
Technical training institutes
bull All the four are having well irrigated land
bull The agricultural output is good when compare to other districts in the state
bull Favourable weather condition
bull Favourable State Govt Policies till date
bull Situated midway to Mangalore and Bangalore
11
Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like
roads structures and facility parking lots and weighing bridges and cranes etc
bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS
bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh
bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc
bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers
bull Going to rope all the farmers to enjoy the benefits of the project to the max
bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ
bull Creating a Marketing Block for the Agricultural products and sales
Conditions apply
12
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
8
9
10
Why these 4 districts
bull All the four are connected with National highways ie (NH-48 and NH-4)
bull All the four are well connected with Rail link
bull Hassan and Hubli districts are having airstrip
bull Economical and well educated manpower available
bull Number of Educational Institutions polytechnics Engineering colleges and
Technical training institutes
bull All the four are having well irrigated land
bull The agricultural output is good when compare to other districts in the state
bull Favourable weather condition
bull Favourable State Govt Policies till date
bull Situated midway to Mangalore and Bangalore
11
Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like
roads structures and facility parking lots and weighing bridges and cranes etc
bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS
bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh
bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc
bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers
bull Going to rope all the farmers to enjoy the benefits of the project to the max
bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ
bull Creating a Marketing Block for the Agricultural products and sales
Conditions apply
12
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
9
10
Why these 4 districts
bull All the four are connected with National highways ie (NH-48 and NH-4)
bull All the four are well connected with Rail link
bull Hassan and Hubli districts are having airstrip
bull Economical and well educated manpower available
bull Number of Educational Institutions polytechnics Engineering colleges and
Technical training institutes
bull All the four are having well irrigated land
bull The agricultural output is good when compare to other districts in the state
bull Favourable weather condition
bull Favourable State Govt Policies till date
bull Situated midway to Mangalore and Bangalore
11
Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like
roads structures and facility parking lots and weighing bridges and cranes etc
bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS
bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh
bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc
bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers
bull Going to rope all the farmers to enjoy the benefits of the project to the max
bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ
bull Creating a Marketing Block for the Agricultural products and sales
Conditions apply
12
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
10
Why these 4 districts
bull All the four are connected with National highways ie (NH-48 and NH-4)
bull All the four are well connected with Rail link
bull Hassan and Hubli districts are having airstrip
bull Economical and well educated manpower available
bull Number of Educational Institutions polytechnics Engineering colleges and
Technical training institutes
bull All the four are having well irrigated land
bull The agricultural output is good when compare to other districts in the state
bull Favourable weather condition
bull Favourable State Govt Policies till date
bull Situated midway to Mangalore and Bangalore
11
Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like
roads structures and facility parking lots and weighing bridges and cranes etc
bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS
bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh
bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc
bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers
bull Going to rope all the farmers to enjoy the benefits of the project to the max
bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ
bull Creating a Marketing Block for the Agricultural products and sales
Conditions apply
12
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
11
Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like
roads structures and facility parking lots and weighing bridges and cranes etc
bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS
bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh
bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc
bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers
bull Going to rope all the farmers to enjoy the benefits of the project to the max
bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ
bull Creating a Marketing Block for the Agricultural products and sales
Conditions apply
12
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
12
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
13
Multiple Benefits The focus on value addition in the agriculture sector is vital for
comprehensive development of the rural economy
Since the food processing industry creates jobs demand for agri
raw materials leads to diversification and commercialization of
agriculture enhancing the incomes of farmers and creating
surpluses for export of agro foods
The broad-based development of the food processing industry will
improve both the social and physical infrastructure of rural India
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
14
SWOT ANALYSIS
Strength Opportunities
Agro Multi product SEZ
bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri
products
bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude
Weakness Threats
bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore
bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge
opportunity for related industry in agriculture
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
15
Recommendations
bull To design the Sector specific policies for Agriculture sector
bull To give the unique permission to sell the products with
INDIA and should give all the incentive and tax holidays
slightly longer than the other commercial SEZ
bull Govt Should ensure the process of approvals to be smooth
and single window clearance need to be ensured etc
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
16
SEZ ndash An Overview
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
17
Overview
bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally
competitive and conducive environment for exports
bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ
bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations
notified there under
bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive
legislation in relation to SEZs
bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to
authorized operation
bull Can be set up by private public joint sector or State Government or its agencies for
manufacture of goods or rendering of services or both or as a Free Trade Warehousing
Zone
bull Goods and services going into the SEZ from DTA treated as exports and goods and
services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under
the Customs Act
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
18
Legislative Framework
SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006
bull Basic framework for setting up and operation of SEZs prescribed under the Act
bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act
SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005
State SEZ PolicyState SEZ Policy
bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005
bull Policy provides for substantive and procedural benefits offered by the State to Developer Units
State SEZ PoliciesState SEZ Policies
SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
19
Legislative Framework
bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006
bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under
bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005
SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
20
Key Stakeholders
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
21
Key Stakeholders
DeveloperDeveloper
bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations
bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer
bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer
bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules
Co-DeveloperCo-Developer
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
22
Key Stakeholders
bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ
bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer
bull All documents shall bear the name of developer co-developer along with the contractor
SEZ UnitsSEZ Units
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
Units in SEZ can undertake
bull Manufacturingbull Rendering of services bull Trading bull Warehousing
In relation to authorized operation of the SEZ
ContractorContractor
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
23
Key Regulators
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
24
Considers proposals for setting up SEZ and Units in SEZ
Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ
Development Commissioner
Board of Approval
For administrative control of the SEZ
Approval Committee
Key Regulators
SEZ Authority
State Government
Receives and forwards the proposal with recommendations to the Board of Approval
Overall authority for governing notifying the SEZ and granting the letter of approval
Central Government
Undertakes measures for the development operation and management of the SEZ
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
25
Benefits Available
Available to Developer Available to Suppliers
Central Benefitsbull Customsbull Other Miscellaneous Taxes and
Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax
State Benefitsbull Electricitybull Labour
Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB
State Benefitsbull Sales Tax VATbull Entry Tax Octroi
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
26
Incentives and facilities offered to the SEZs
bull The incentives and facilities offered to the units in SEZs for attracting investments into
the SEZs including foreign investment include-
bull Duty free importdomestic procurement of goods for development operation and
maintenance of SEZ units
bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the
ploughed back export profit for next 5 years
bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act
bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any
maturity restriction through recognized banking channels
bull Exemption from Central Sales Tax
bull Exemption from Service Tax
bull Single window clearance for Central and State level approvals
bull Exemption from State sales tax and other levies as extended by the respective State
Governments
Source from wwwsezindiagovin
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
27
Benefits Available (Contd)
bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006
exemptions are made available to Developer Unit and to their suppliers
bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to
provide exemptions concessions with respect to sales tax VAT
electricity duty etc
bull The exemption concession has to be refunded by developer if-
ndash Developer does not utilise the goods or services for authorised
operations
ndash Unable to duly account for the goods and services for authorised
operations
bull Duty drawback or any other export entitlement on DTA supplies to be paid
back by the developer in case of destruction of goods in a natural calamity
ndash Not required where payment made in foreign exchange
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
28
Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-
- Agricultural Produce Cess Act 1940
- Coffee Act 1942
- Mica Mines Labour Welfare Fund Act 1946
- Rubber Act 1947
- Tea Act 1953
- Salt Cess Act 1953
- Medicinal and Toilet Preparations (Excise Duties) Act 1955
- Additional Duties of Excise (Goods of Special Importance) Act 1957
- Sugar (Regulation of Production) Act 1961
- Textiles Committee Act 1963
- Produce Cess Act 1966
- Marine Products Export Development Authority Act 1972
- Coal Mines (Conservation and Development Act 1974
- Oil Industry (Development) Act 1974
- Tobacco Cess Act 1975
- Additional Duties of Excise (Textile and Textile Articles) Act 1978
- Sugar Cess Act 1982
- Jute Manufactures Cess Act 1983
- Agricultural and Processed Food Products Export Cess Act 1985
- Spices Cess Act 1986
- Research and Development Cess Act 1986
Miscellaneous Benefits ndash Central Laws
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
29
Setting up of SEZ Basic Concepts
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
30
Key Concepts
Infrastructural Facilities
Infrastructural Facilities
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed
InfrastructureInfrastructure
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
31
Role of Developer
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
32
Role of the Developer
Developer required to undertake authorised operations in relation to ndash
Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning
bull Authorized operations not defined in SEZ Act or Rules
Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
33
Approval Criteria
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
34
Who can be a SEZ developer
bull SEZ can be set up jointly or severally by
ndash Central Government
ndash State government
ndash Any person (incl Private Public limited Company
Partnership or Proprietorship)
Section 3(1)
Approval Criteria ndash Applicant
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
35
Authorised OperationsAuthorised Operations bull Comprehensive
Approval Criteria ndash Multi product SEZ
SizeSize
bull Minimum contiguous area of 1000
hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a
minimum contiguous area of 100 hectares
Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated
as processing area
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
36
Authorised OperationsAuthorised Operations
Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy
Approval Criteria ndash Sector specific SEZ
SizeSize
Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related
activities)
bull Minimum contiguous area of 100 hectares (50 hectares in specified states)
bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters
bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
37
Authorised OperationsAuthorised Operations Primarily trading and warehousing activities
Approval Criteria ndash Free Trade amp Warehousing Zone
SizeSize
Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters
bull Minimum 40 hectares bull No minimum area limit for setting up the
SEZbull Maximum area not to exceed 20 percent of
processing area
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
38
Approval Criteria
bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare
(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)
Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006
Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo
bull Additional area can be included in the existing SEZ Minimum area of additional area not specified
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
39
Approval Process
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
40
Application to State Government or Board of Approval (BOA)
Section 3(2) amp 3(3) Rule 3
Approval Process
Forwards proposal to BOA with recommendations within 45 days of receipt of proposal
Section 3(6) and Rule 4
BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5
Approval Communicates to the Central Government
In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of
approval by BOA (Rule 4)
State Government
Applicant
Board of Approval
2
1 1
3
ModificationCommunicates to the
applicant
RejectionCommunicates the reasons to Central Government which shall
intimate the same to the applicant
Applicant refers to applicant for the development of SEZ other than Central or State Government
4 Conthellip
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
41
Approaches DC for demarcation of
Processing Non Processing Area
Applies to Approval Committee for permission of
procurement items
Submit details of proposed operations
Approves authorized operations
Board of Approval
Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6
Central Government
Submit details of identified area to
Ministry of Commerce
Developer
Notification of SEZ by Central Government
(Ministry of Commerce)
4
5a5b
6
7b
Approval Process ndash Post LOA
Developer
On agreement with Developers to apply for an LOA
Co-Developer
7a
8b Conthellip8a Conthellip
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
42
Approves import and procurement of goodsRule 10
Approval Committee8a
Approval Process ndash Post Notification
Demarcates Processing Non Processing AreaRule 11
DC8b
9Obtains IEC and executes Bond cum-Legal Undertaking and follows General
Conditions of importRule 12 amp 14
Developer
Avails duty concession on import procurement and commence operation
Developer
For details refer to Annexure 3
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
43
Approval Process ndash Co-developer
Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or
undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA
from Central Government (Ministry of Commerce)bull However state government recommendations not required
Developer may specify the requirement of Co-developer at the proposal stage
Although SEZ Act and Rules are silent on this aspect specifying co-developers
requirement at proposal stage may expedite the process of obtaining LOA for
co-developer at a later stage
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
44
Initiative
Community attitude
Cleaner amp greener facilities
Labor safety amp medical care
Cleaner amp greener facilities
Zero tolerance for pollution
Maintain natural resources
Creating opportunity for local people
For successful sustainable development
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
45
Products related to the Agriculture and Food Industry
bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery
Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets
Pastry Toffees
bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder
bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products
bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits
Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts
bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex
Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes
Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
46
Products related to the Agriculture and Food Industry
contbull Edible Oil amp Allied Products
Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine
bull Fertilizers
Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous
Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers
bull Flowers Floriculture amp Dried Flowers
Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
47
Products related to the Agriculture and Food Industry
contbull Food Processing Plants Machinery amp Equipment
Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers
bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables
Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips
bull Liquors Mineral Water amp Beverages
Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine
bull Marine Food Supplies
Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
48
Products related to the Agriculture and Food Industry
contbull Meat amp Poultry Food
Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham
bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast
bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants
bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
49
Products related to the Agriculture and Food Industry
contbull Pet-Use Products Feeds Pet Furniture amp Allied Products
Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness
bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce
bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps
bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery
SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
50
Products related to the Agriculture and Food Industry
contbull Seeds Buds Plantation amp Related Products
Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds
bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder
bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas
bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
51
AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture
While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production
For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities
Agri industries help strengthen the farm sector and stabilize rural
incomes
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112
52
BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA
INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112