We discuss all Special Economic Zone (SEZ) in India. India is the first country in Asia to recognize that the Export Processing Zone (EPZ) model could promote exports. They set up the first EPD in 1965 in Kandla. The aim is to overcome the shortcomings caused by the multiplicity of checks and clearances; the absence of world-class infrastructure, and the instability of the fiscal regime, in order to attract more investments. Therefore, the policy aims at transforming Special Economic Zone (SEZs) into an engine of economic growth. To be supported by quality infrastructure and an attractive fiscal package. Both at the state and the national levels, with the minimum of regulations. As a result, SEZs India operated from 1st November 2000 to 9th February 2006 under the provisions of the FTP. While the related statutes provided fiscal incentives.
To instill confidence in investors and signal the Government’s commitment to a stable SEZ policy regime. In order to increase economic activity and employment by establishing SEZs in a stable manner. Special Economic Zone policy regime in order to provide stability to the SEZ policy regime, thereby generating greater economic activity and employment. Following extensive discussions with the stakeholders, a comprehensive draft SEZ Bill has been prepared. So, the Minister for Commerce and Industry and senior officials convened a number of meetings across the country regarding this issue. In May 2005, the SEZs Act 2005, passed the Parliament and was signed by the President on June 23rd, 2005. Consequently, the draft SEZ rules have been widely discussed and posted on the website of the Department of Commerce for public comment.
Therefore, we received over 800 suggestions for the draft rules. As a result, the SEZ Act, 2005, supported by SEZ Rules, came into force on 10th February 2006. Just to clarify, they simplify procedures and provide a single point of contact for matters involving state and federal governments. The SEZ Act has the following main objectives:
So, this will spur large-scale foreign and domestic investment into SEZs, infrastructure, and productive capacity, resulting in additional economic activity and more jobs. Consequently, the state government plays a key role in export promotion and the creation of related infrastructure in the SEZ Act 2005. To clarify, a 19-member interdepartmental SEZ Board of Approval (BoA) facilitates a single-window approval process. Furthermore, the Board of Approvals considers periodic applications recommended by the respective state governments/UT administrations. However, all decisions of the Board of Approvals are unanimous.
For each class of SEZ, different land requirements apply. Every SEZ has a processing area where just the units of SEZ can be built. There is a non-processing area where supporting infrastructure will be established.
In order to establish an SEZ, the developer submits a proposal to the concerned state government for their consideration. The state government must forward the proposal with its recommendation to the BoA within 45 days from the date of receipt. There is also the option of submitting the proposal directly to the Board of Approval.
For instance, there is a three-tier administrative setup for the functioning of SEZs. Above all, the SEZ Board of Approval is the apex, headed by the Secretary of Commerce. In addition, at the Zone level, the Approval Committee approves units in the SEZs and other matters. During the approval process, the Development Commissioner serves as the Chairperson of the Approval Committee.
After that, the Board of Approval approves an SEZ. The Central Government notifies the area of the SEZ, and units may be built within the SEZ. The Zone Approval Committee consists of the Development Commissioner. Also customs authorities, and representatives of the state government, and approve all proposals for setting up units in the SEZ. In addition to the granting of the importer-exporter code number. Any changes to the name of the company or implementing agency, broad banding diversifications, etc. All are given by the Zone Development Commissioner. Approval Committees regularly monitor the performance of SEZ units. In case of violation of approval conditions, units are subject to penal action under the Foreign Trade (Development and Regulation) Act.
To Know More
There are certain certificates that you must obtain from the concerned departments regarding the following items: