52_presentation on Special Economic Zone

8/9/2019 52_presentation on Special Economic Zone

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BY: FURKAN KAMDAR


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INTRODUCTION

A Special Economic Zone (SEZ) is ageographical region that has economic laws

that are more liberal than a country's typicaleconomic laws.

'SEZ' covers a broad range of zone eg.

Free Trade Zones (FTZ)

Export Processing Zones (EPZ)

Free Zones (FZ)

Industrial Estates (IE)

INTRODUCTION


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Considering the need to enhance foreigninvestment and promote exports from the

country and realizing the need that alevel playing field must be madeavailable to the domestic enterprises andmanufacturers to be competitive globally.

The Government ofINDIA had in April

2000 announced the introduction ofSpecial Economic Zones policy in thecountry


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A designated duty free enclave and to betreated as foreign territory for tradeoperations and duties and tariff

. . . . EXIM Policy 2000, Chapter 9 para 30

Extremely successful Chinese format topromote exports

No license required for import

Manufacturing, trading or service activityallowed

SALIENT FEATURES


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No fixed wastage norm

Duty free goods to be utilized in 5 years

SEZ unit to be positive net foreignexchange earner within three years

Performance of the units to be monitored

by a Committee headed by DevelopmentCommissioner and consisting ofCustoms


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Job work on behalf of domestic exporters for

direct exports allowed

Contract farming allowed agriculture/

horticulture units

No routine examination by Customs of

export & import cargo

No separate documentation required for

Customs and Exim Policy


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To enable creation of a world-class environment, SEZs

includes the following facilities:

Business commercial offices and buildings

Living Residential and social areas

Learning Schools, Colleges, Institutions and Centres of

Excellence

Healthcare Specialized and primary healthcare facilities

Recreation

Theme Parks, Restaurants, Hotels, GolfCourses

Utilities Efficient and reliable power, water, waste

management & technology facilities


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(Current Data) (as of 30.6. 2008)

Chairman: Secretary, Department ofCommerce(MR. GOPAL KRISHNA PILLAI)

1.Total employment in SEZs: 3,49,203 Lakhpersons

2. Total investment in Special Economic Zones

as of 30.6. 2008: Rs. 81093 crore

3. Increase in exports over four years (2003-04

2007-08) : 381%


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100% FDI allowed for : townships and

recreational facilities on a case to case basis,

franchise for basic telephone service in SEZ

Income Tax Benefit under (80 IA) to developers

for any block of 10 years in 15 years

Exemption from Service Tax

FACILITIES TO SEZ DEVLOPERS


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Income of infrastructure capital

fund/company from investment in SEZ

exempt from Income Tax

Investment made by individuals etc in a SEZcompany also eligible for exemption u/s 88 of

IT Act

Developer permitted to transfer infrastructure

facility for operation and maintenance


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Generation, transmission and distribution of

power in SEZs allowed

Duty free import/domestic procurement of

goods for development, operation andmaintenance of SEZs

Full freedom in allocation of space and built up

area to approved SEZ units on commercial

basis


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Authorized to provide service like water,

electricity, security, restaurants and recreation

centers on commercial lines.


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Special Economic Zones: Opportunities

Opportunity to rural masses to shift fromagriculture to manufacturing & service sector

reducing burden on the agriculture.

Employment opportunity improve the morale &

economic conditions of the poor landless

farmer/ labour.

Increase awareness, competitiveness &

Adaptability.


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Waste Land Utilization generate income to the

govt leading more investment in the area.

International Market come at doorsteps.

Infrastructural support provide amicable

solution to the problems of sustainable

development.

Generation of economic activity reduce the

possibility of family holding & employment in

disguise.


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Special Economic Zones: Fear

Fertile land is taken by SEZ reduce thecultivable land.

Inadequate enforcement of scheme ofresettlement cause social destitution.

No confirm mechanism of establishingSEZs led to fear psychosis amongvillagers.


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Small & Marginal Farmers may turn landless.

Source of livelihood may be snatched by

corporate & capitalist.

Immigration may alter the natural resource

capital and spoil the cultural identity.


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Special Economic Zones: Remedies

Establish SEZs on waste land.

Establish SEZ as per the nature of resources in

the area.

SEZs will provide avenues for resource

mobilization.

Establish SEZs for development not forretrenchment.


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Land acquisition and resettlement will be

properly addressed to the grievances ofthe farmers.

Agribusiness & processing activities mustbe promoted through SEZs.

Proper attention paid for sustainableenvironment.


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Establish in tune with the aspects of Rural

Development.

Make it an opportunity to develop Rural

Tourism.

Ensure fuller participation of the persons from

the area.


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SEZs approved in IndiaSEZs approved in India

State Location

Maharashtra MahaMumbai, Dronagiri

Tamil Nadu Nanguneri

Gujarat Positra

Andhra

PradeshKakinada

Madhya

PradeshIndore

Orissa Paradeep, Gopalpur

Uttar

PradeshKanpur and Greater Noida

West Bengal Kulpi

Karnataka Hassan

Converted

Greenfield


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Implementation by StatesIMPLEMENTATION BYSTATES


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FEB 2006 OCT 2007


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Year Value (Rs. Crore) Growth Rate(over previous

year )

2003-2004 13,854 39%

2004-2005 18,314 32%

2005-2006 22 840 25%

2006-20007 34,615 52%

- - -

Exports from the functioningSEZs

during the last four years are:


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SEZs are of National and State levelimportance

Each SEZ represents an integratedmanagement of several infrastructurefacilities at one location

SEZs has been pioneering theIndustrialization through Industrial Estate

In Conclusion


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Documents

52_presentation on Special Economic Zone