Transcript SEZs - Portal ANDI

ZONE DEVELOPMENT AND
OPERATION
AN INDIAN PERSPECTIVE
PRESENTATION BY
P.C. NAMBIAR
Chairman,
Export Promotion Council for Export Oriented Units and SEZs, India
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INDIA – FEDERAL SET UP
29
STATES AND
RULED BY
PARTIES.
13
7
UNION TERRITORIES
DIFFERENT POLITICAL
 INDEPENDENT FEDERAL AUTHORITY ON
CERTAIN VITAL ISSUES LIKE LAND USE,
LABOUR ,LAW & ORDER ETC.
 INDEPENDENT STATE TAX LEGISLATIONS.
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3
INDIA - FEDERAL SET UP
 SMALLEST STATE SIZE
 LARGEST STATE SIZE
0.370 Mn Ha
34.226 Mn Ha
 VARYING RATIO OF LITERACY RATES
 UNEVEN POPULATION DENSITY
30 LANGUAGES SPOKEN WITH DIFFERENT
CULTURE
4
INDIA – DEMOGRAPHY
 LACK OF ADEQUATE INDUSTRIAL,
COMMERCIAL AND SOCIAL INFRASTRUCTURE
 3 TIER GOVERNANCE ACROSS THE COUNTRY
 LACK OF ECONOMIC AWARENESS
5
INTRODUCTION
 ZONE DEVELOPMENT STARTED IN 1965
 INITIALLY ONLY GOVERNMENT ZONES
 STATE GOVT DEVELOPED 10 ZONES
 ONLY ONE PVT ZONE UPTO 2006
 SEZ ACT 2005 AND SEZ RULES 2006 ENACTED
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SEZ SIZE- SECTOR FOCUS
FOR IT/ITES SECTOR MINIMUM BUILT-UP
AREA SPECIFIED
• Category “A” – 1,00,000 Sq Mtr
• Category “B” - 50,000 Sq Mtrs
• Category “C”- 25,000 Sq Mtrs.
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SEZ SIZE – SECTOR FOCUS
Multi Product SEZs - 500 Ha
Multi Services SEZs – 50 Ha
Sector specific SEZs – 50 Ha
Port or Airport based SEZs- 50 Ha
(in smaller and specified sector 25 Ha)
BT, Non conventional energy or gems and
jewellery , Handicrafts, electronics - 10 Ha
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FREE TRADE WAREHOUSING
ZONE
 FTWZ – Only FTWZ-40 Ha with a built up area of
not less than 100,000 sq.mtr)

FTWZ can be set up Sector Specific SEZ- ( Max 20%
of processing area ) in a Multi product SEZ no
limitation prescribed
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SPECIAL ECONOMIC ZONES IN
INDIA.

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
FORMALLY APPROVED -564
GOVERNMENT SPONSORED-18
PRIVATE SEZs - 546
-------------------------------------------------------------------NOTIFIED SEZs- 388
GOVERNMENT SPONSORED-18
PRIVATE SEZs-370
-------------------------------------------------------------------OPERATIONAL SEZs – 192
GOVERNMENT SPONSORED-18
PRIVATE SEZs- 174
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SEZ LOCATION
 9 OUT OF 29 STATES DON’T
HAVE SEZ PRESENCE
 3 OUT OF 7 UNION TERRITORIES
DO NOT HAVE SEZ PRESENCE
 NO UNIFORM FISCAL BENEFITS
OFFERED BY STATES
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SEZ MAP IN TINY STATES BELOW 10
Mn HECTARES SIZE
.37 Mn Ha SIZE
GOA ( 7 SEZS
0
APPROVED)
Operational
1.658 Mn Ha
SIZE
NAGALAND
4.421 Mn Ha
SIZE HARYANA
(39 SEZ
APPROVED 6
Operational
( 2 SEZ
APPROVED) 0
Operational
3.3.886 Mn Ha
SIZE KERALA
(30 SEZ
APPROVED
14 Operational
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SMALLER SIZE STATES
5.03 Mn Ha size
PUNJAB (8 SEZ
APPROVED
2 Operational
5.36 Mn Ha SIZE
UTTARAKAND (2
SEZ APPROVED)
8.87 Mn Ha size
WEST BENGAL ( 17
SEZ APPROVED)
6 Operational
0 Operational
7.47 Mn Ha SIZE
JHARKAND (1 SEZ
APPROVED)
0 Operational
13
10 TO 20 Mn Ha SIZE STATES
13 Mn SIZE
TAMIAL NADU
(69 SEZs)
33 Operational
19.6 Mn Ha SIZE
GUJARAT (47
SEZs)
17 Operational
19.17 Mn Ha
SIZE
KARNATAKA
(62 SEZs)
20 Operational
13.5 Mn Ha SIZE
CHATTISGARH
(2 SEZS)
0 Operational
15.5 Mn Ha SIZE
ODISHA (10
SEZs)
1 Operational
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BIGGER SIZE STATES
16.02 Mn Ha SIZE ANDHRA
PRADESH
(44 SEZs)
24.3 Mn Ha SIZE UTTAR
PRADESH ( 32 SEZs)
10 Operational
18 Operational
--------------------------------11.48 Mn Ha SIZE
30.77 Mn Ha SIZE
MAHARASHTRA (99 SEZs)
25 Operational
TELANGANA
64 SEZ (24 Operational)
30.82 Mn Ha SIZE
MADHYA PRADESH
(19 SEZs)
2 Operational
34.22 Mn Ha Size
RAJASTHAN (10 SEZS)
4 Operational
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LOCATION –
STATES NOT HAVING SEZs
STATES
POPULATION
STATE
POPULATION
ARUNACHAL
PRADESH
1,382,611
ASSAM
31,169,272
BIHAR
103,804,637
HIMACHAL
PRADESH
6,856,509
JAMMU &
KASHMIR
12,548,926
MEGHALAYA
2,964,007
MIZORAM
1,091,014
SIKKIM
607,688
TRIPURA
3,671,032
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SEZ LOCATION - UNION
TERRITORIES NOT HAVING SEZs
 ANDAMAN & NICOBAR ISLANDS
 DAMAN AND DIU
 LAKSHADWEEP
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INVESTMENT IN SEZs
 IN THE GOVERNMENT
SPONSORED SEZs
- US$
4,007 Mn
 IN THE PRIVATE
SECTOR SEZs
- US$ 46,269 Mn
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FDI in Zone Development
Cochin SEZ
US$ 4.85 Mn
Falta SEZ
US$ 3.44 Mn
Kandla SEZ
US $ 11.46 Mn
SEEPZ, Mumbai
US $ 54.54 Mn
Noida SEZ
US $ 29.16 Mn
Vishakapatnam SEZ
US $ 19.41 Mn
Madras EPZ
US $ 40 Mn
TOTAL
US $ 162.87 Mn
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DIRECT EMPLOYMENT IN SEZs
 IN THE GOVT. SPONSORED SEZs- 281,823 persons
 IN PRIVATE SECTOR SEZs
- 995,822 persons.
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SEZ PERFORMANCE
 NUMBER OF SEZ OPERATING UNITS - 3,818
 EXPORTS AS OF 31.03.2014- US$ 82,346 Mn
 DOMESTIC SALE IN INDIA AS OF 31.03.2014 –
US$ 11,386 Mn
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SEZ SECTOR MIX
Of 192 Operational
 MULTI PRODUCTS 10%
 OTHER SECTOR
SPECIFIC
MANUFACTURING 32%
 IT/ITES , ELECTRONIC
HARDWARE, SEMI
CONDUCTOR SERVICES
56%
• OTHER SERVICES- 2%
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State-wise distribution of approved SEZs (As on 01.9.2014)
States/UTs
Formal
Approvals
In-principle
approvals
Notified
SEZs
^Exporting SEZs (Central Govt. + State
Govt./Pvt. SEZs + notified SEZs
under the SEZ Act, 2005)
Andhra Pradesh
44
4
33
18
Chandigarh
2
0
2
2
Chhattisgarh
2
1
1
1
Delhi
3
0
0
0
Dadra & Nagar Haveli
2
0
1
0
Goa
7
0
3
0
Gujarat
42
6
29
18
Haryana
39
3
28
6
Jharkhand
1
0
1
0
Karnataka
61
0
40
25
Kerala
30
0
25
14
Madhya Pradesh
19
1
9
2
Maharashtra
99
11
66
25
Manipur
1
0
1
0
Nagaland
2
0
2
0
Odisha
10
1
5
1
Puducherry
1
1
0
0
Punjab
8
0
2
2
Rajasthan
10
1
10
4
Tamil Nadu
66
5
53
34
Telangana
64
0
45
24
Uttar Pradesh
32
1
22
10
Uttarakhand
2
0
1
0
West Bengal
17
3
9
6
GRAND TOTAL
564
38
388
192
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Sector-wise Distribution of approved SEZs ( As on 20.08.2014)
Sectors
Formal
Approvals
In-Principle
approvals
Notified
SEZs
Exporting SEZs
(Central Govt./Pvt.
SEZs + Notified SEZs
under the SEZ Act,
2005)
Agro
6
2
5
0
Airport based multi-product
3
0
0
0
Auto and related
1
1
1
1
7
1
6
5
Beach & Mineral/Metals
3
0
3
0
Bio-tech
30
0
19
2
Building prod./mal./transport equipments
/ceramic and glass
2
2
2
2
Electronic product/Industries
3
0
3
1
Engineering
20
1
14
13
Footwear/Leather
5
0
4
3
Food Processing
5
0
4
4
FTWZ
13
6
7
3
Gems and Jewellery
13
3
6
3
Handicrafts & Carpets
5
0
3
2
347
0
239
107
Metal/Stain.Steel/Alum/Foundry
7
1
4
0
Light Engieering/Metallurgical
Engineering/Automotive Components
1
0
0
0
Aviation/Aerospace/Animation & Gaming/Copper
IT/ITES/Electronic
Hardware/Semiconductors/Servces
24
Sector-wise Distribution of approved SEZs ( As on 20.08.2014)
Sectors
Formal
Approv
als
InPrinci
ple
appr
ovals
Notified
SE
Zs
Exporting SEZs
(Central
Govt./Pvt. SEZs
+ Notified SEZs
under the SEZ
Act, 2005)
Multi-product
24
11
16
19
Multi-Services
10
2
7
2
Non-Conventional Energy
6
0
4
2
Plastic processing
0
2
0
0
Petrochemicals & petro./oil and gas
4
1
2
1
Pharmaceuticals/Chemicals
22
2
20
11
Port-based multi-product
6
1
3
2
Power/alternate energy/solar
3
1
3
3
Textiles/Apparel/Wool
14
1
11
6
Writing and printing paper mills
2
0
1
0
Granite processing Industries and other allied
machinery/manufacturing
2
0
1
0
564
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388
GRAND TOTAL
192 25
REGULATION –
SETTING UP OF SEZ
 BY CENTRAL GOVT
 ISSUANCE OF LETTER OF APPROVAL
 SEZ NOTIFICATION
 AUTHORIZE OPERATIONS
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SINGLE WINDOW MECHANISM
 BOARD OF APPROVALS AT CENTRAL GOVT LEVEL
 UNIT APPROVAL COMMITTEE AT STATE LEVEL
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SEZ DEVELOPMENT PROCEDURE –
STEP 1
 RIGHTFUL POSSESSION OF LAND ON HAND
 CLEARANCE FROM LOCAL GOVERNMENT
 APPLICATION TO BOARD OF APPROVALS
 RECOMMENDATION OF STATE GOVERNMENT
 LETTER OF APPROVAL
 NOTIFICATION OF SEZ
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DEVELOPMENT PROCEDURE –
STEP 2
 DEMARCATION OF PROCESSING AND NON-PROCESSING
AREA
 MASTER PLAN APPROVAL BY PLANNING AUTHORITY
 BUILDING LAYOUT AND INFRASTRUCTURE DEVELOPMENT
APPROVAL
 POSTING OF CUSTOMS OFFICERS
 EXECUTION OF BOND FOR DUTY FREE BENEFITS BY
DEVELOPERS/CO-DEVELOPERS
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DEVELOPMENT PROCEDURE –
STEP 3
 COMPOUND WALL AROUND PROCESSING AREA
 LEASING OF AREA TO UNIT HOLDERS
 LETTER OF APPROVAL TO UNIT
 EXECUTION OF BOND BY UNITS FOR DUTY FREE BENEFITS
 PROGRESSIVE REPORTING OF SEZ PERFORMANCE BY
DEVELOPER AND UNITS
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GOOD GOVERNANCE
 DEVELOPMENT COMMISSIONER /UNIT
APPROVAL COMMITTEE – NODAL AGENCY
FOR PERMISSIONS AND APPROVALS
 ASSESSMENT, EXAMINATION AND CLEARANCE
MONITORED BY OFFICERS DEPUTED FROM
CUSTOMS DEPARTMENT
 SEZ OPERATIONS MONITORED THROUGH
PERIODICAL REPORTING AND M.I.S.
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INCENTIVES FOR SEZ IN INDIA
 ALL MATERIALS REQUIRED FOR
INFRASTRUCTURE DEVELOPMENT BY
DEVELOPERS ARE EXEMPT FROM CUSTOMS
DUTY , CENTRAL EXCISE DUTY, AND STATE
VAT
 ALL MATERIALS REQUIRED FOR AUTHORISED
OPERATIONS BY UNITS ARE EXEMPT FROM
CUSTOMS DUTY, CENTRAL EXCISE DUTY AND
STATE VAT
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INCENTIVES FOR SEZ
 ALL SERVICES RECEIVED IN CONNECTION WITH
AUTHORIZED OPERATIONS ARE EXEMPT FROM
SERVICE TAX
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INCOME TAX- BENEFITS
 100% INCOME TAX EXEMPTION FOR A BLOCK
OF 10 YEARS OUT OF 15 YEARS FOR
DEVELOPERS.
 100% INCOME TAX EXEMPTION FOR 1ST FIVE
YEARS AND 50% FOR SUBSEQUENT FIVE YEARS
(FOR UNITS)
 REINVESTMENT ALLOWANCE TO THE EXTENT
OF 50% OF PLOUGHED BACK PROFITS CARRY
FORWARD OF LOSSES(FOR UNITS).
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INVESTMENT INCENTIVES-1
 100% FOREIGN DIRECT INVESTMENT UNDER
AUTOMATIC ROUTE FOR MANUFACTURING
SECTOR IN SEZ UNIT
 NO CAP ON FDI FOR SSI RESERVED ITEMS.
 SETTING UP OFFSHORE BANKING UNITS
ALLOWED IN SEZS
 100% INCOME TAX EXEMPTION FOR 3 YEARS AND
50% FOR NEXT TWO YEARS FOR OFF SHORE
BANKING UNITS
35
INVESTMENT INCENTIVES-2
 EXTERNAL COMMERCIAL BORROWINGS UPTO USD
500 MILLION A YEAR ALLOWED WITHOUT ANY
MATURITY RESTRICTION FOR UNITS.
 EEFC ACCOUNT FOR EXPORT PROCEEDS ALLOWED
WITH FREEDOM TO INVEST OVERSEAS.
 EXEMPTION FROM INTEREST RATE , SURCHARGE
ON IMPORT FINANCE.
 ENVIRONMENTAL CLEARANCE ON PRIORITY.
 NORMS FOR SEZ SIZE REDUCED TO SUIT
INDUSTRIES
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SEZ – DEVELOPMENT ISSUES
 WHILE THERE IS A CENTRAL SEZ ACT, MANY
STATES DON’T HAVE THE CORRESPONDING
STATE SEZ ACT
 NATURAL RESOURCES UNEVENLY
DISTRIBUTED
 70% POPULATION DEPENDS ON
AGRICULTURE AND FOOD PROCESSING
SECTOR NOT FULLY DEVELOPED
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Some of the IT/ITES/EHTP SEZs
Wipro SEZ, Andhra Pradesh
EON Kharadi SEZ, Pune
HCL Technologies SEZ, Noida (UP)
Mahindra SEZ, Chennai
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SERUM BIO-PHARMA PARK SEZ , PUNE , INDIA
INDIA ‘S FIRST BIO-PHARMA SEZ
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