In addition to Seven
Central Government Special Economic Zones (SEZs) and 11 State/Private Sector
SEZs set-up prior to the enactment of the SEZ Act, 2005, formal approval has
been accorded to 565 proposals out of which 388 SEZs have been notified.
Presently, a total of 185 SEZs are exporting. A list showing State-wise
distribution of formally approved, notified and operational SEZs is at Annexure.
The fiscal concessions and duty benefits allowed to Special Economic Zones
(SEZs) are inbuilt into the SEZs Act, 2005 and Rules thereunder. These
exemptions are uniformly applicable to all SEZs and are in the nature of
incentives for export and are consistent with the principles that guide export
promotion initiatives of the Government in general. The incentives and
facilities offered to the units in SEZs for attracting investments into the
SEZs are as under:-
1.
Duty
free import/domestic procurement of goods for development, operation and
maintenance of SEZs and SEZ units
2.
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.
3.
Exemption
from Central Sales Tax.
4.
Exemption
from Service Tax.
5.
Exemption
from State sales tax and other levies as extended by the respective State Governments.
The
contribution of SEZ exports to overall country’s exports and employment
generated in SEZs during the last three years are as under:
|
Financial Year(s)
|
Total Exports of the Country**
(Rs. Crore)
|
Total SEZ Exports
(Rs. Crore)
|
% share of SEZ exports in the total exports of the country
|
Employment in SEZs*
|
|
2011-2012
|
14,65,959
|
3,64,478
|
24.86
|
8,44,916
|
|
2012-2013
|
16,35,261
|
4,76,159
|
29.12
|
10,74,904
|
|
2013-2014
|
18,92,892
|
4,94,077
|
26.10
|
12,83,309
|
*
calculated on cumulative basis.
** Data source: DGCIS, Kolkata.
The proposals in respect
of legislative changes in direct tax laws are considered through the Finance
Bill during the Annual Budgetary exercise. The response of the Government in
this regard shall be reflected in the form of Finance (No. 2) Bill, 2014.
The Government, on the
basis of inputs/suggestions received from stakeholders on the policy and
operational framework of the SEZ Scheme, periodically reviews the policy and
operational framework of SEZs and takes necessary measures so as to facilitate
speedy and effective implementation of SEZ Scheme.
Annexure
to the Lok Sabha Unstarred Question No.379 for 11th July, 2014
|
State-wise
distribution of approved SEZs
(As on
04.07.2014)
|
|
States/UTs
|
Formal
Approvals
|
Notified
SEZs
|
Operational
(Exporting) SEZs
|
|
Andhra Pradesh
|
108
|
78
|
42
|
|
Chandigarh
|
2
|
2
|
2
|
|
Chhattisgarh
|
2
|
1
|
1
|
|
Delhi
|
3
|
0
|
0
|
|
Dadra & Nagar Haveli
|
2
|
1
|
0
|
|
Goa
|
7
|
3
|
0
|
|
Gujarat
|
42
|
29
|
18
|
|
Haryana
|
39
|
28
|
5
|
|
Jharkhand
|
1
|
1
|
0
|
|
Karnataka
|
61
|
40
|
25
|
|
Kerala
|
30
|
25
|
11
|
|
Madhya Pradesh
|
19
|
9
|
2
|
|
Maharashtra
|
100
|
66
|
22
|
|
Manipur
|
1
|
1
|
0
|
|
Nagaland
|
2
|
2
|
0
|
|
Odisha
|
10
|
5
|
1
|
|
Puducherry
|
1
|
0
|
0
|
|
Punjab
|
8
|
2
|
2
|
|
Rajasthan
|
10
|
10
|
5
|
|
Tamil Nadu
|
66
|
53
|
34
|
|
Uttar Pradesh
|
32
|
22
|
9
|
|
Uttarakhand
|
2
|
1
|
0
|
|
West Bengal
|
17
|
9
|
6
|
|
GRAND TOTAL
|
565
|
388
|
185
|
The Government, on the
basis of inputs/suggestions received from stakeholders on the policy and
operational framework of the SEZ Scheme, periodically reviews the policy and
operational framework of SEZs and takes necessary measures so as to facilitate
speedy and effective implementation of SEZs as also to promote investment in
SEZs thereby augmenting growth of employment and SEZ exports. In order to
address the challenges being faced by SEZs, including difficulty in
availability of vacant, contiguous land for setting up SEZs, inflexibilities in
definition of Sector leading to non-optimal utilization of land etc, certain
amendments have been carried out in the SEZ Rules, 2006 vide
G.S.R. No. 540(E) dated 12th August, 2013.
The
information was given by the Minister of State (Independent Charge) in the
Ministry of Commerce & Industry Smt. Nirmala Sitharaman in Lok Sabha today.
******
DS