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Special Economic Zone

Prepared By:Malvika Awasthi

Deeksha Gupta
Ketki
Abhishek
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What is SEZ?
The Special Economic Zone (SEZ) policy in India first came

into inception on April 1, 2000

The prime objective was to enhance foreign investment and
provide an internationally competitive and hassle free
environment for exports
The idea was to promote exports from the country and realising
the need that level playing field must be made available to the
domestic enterprises and manufacturers to be competitive
globally
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Special Economic Zone

Where

are

SEZs

located

in

India?

SEZ was first introduced in Vishakhapatnam

At present there are eight functional SEZs located at

Santa Cruz (Maharashtra), Cochin (Kerala), Kandla

and Surat (Gujarat), Chennai (Tamil Nadu),
Visakhapatnam (Andhra Pradesh), Falta (West
Bengal) and Noida (Uttar Pradesh) in India. Further an
SEZ in Indore (Madhya Pradesh) is now ready for
operation
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Role Of State Government

Establishing SEZs?

In

State governments will have a very important role to play in the

establishment of SEZs
Representative of the state government, who is a member of the
inter-ministerial committee on private SEZ, is consulted while
considering the proposal
Before recommending any proposals to the ministry of commerce
and industry (department of commerce), the states must satisfy
themselves that they are in a position to supply basic inputs like
water, electricity, etc

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Objectives Of SEZ
The objectives of SEZs can be explained as
Promotion of exports of goods and services
Generation of additional economic activity
Promotion of investment from domestic and foreign
sources
Creation of employment opportunities
Development of infrastructure facilities

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Incentives And Facilities Of SEZ

The incentives and facilities available to SEZ developers
include:
Exemption from customs/excise duties for development of

SEZs for authorized operations approved by the BOA

Exemption from minimum alternate tax under Section 115 JB
of the Income Tax Act
Exemption from Central Sales Tax (CST)
Exemption from Service Tax
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Advantages of SEZ
Allowed to carry forward losses
No licence required for import made under SEZ units
Duty free import or domestic procurement of goods for

setting up of the SEZ units

Goods imported/procured locally are duty free and could be
utilized over the approval period of 5 years
Exemption from customs duty on import of capital goods,
raw materials, consumables, spares, etc
The SEZ unit is permitted to realize and repatriate to India the
full export value of goods or software within a period of
twelve months from the date of export
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Disadvantages of SEZ
Revenue

losses because of the various tax

exemptions and incentives
Many traders are interested in SEZ, so that they
can acquire at cheap rates and create a land bank
for themselves
The number of units applying for setting upEOUs
is not commensurate to the number of applications
for setting up SEZ's leading to a belief that this
project may not match up to expectations

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H
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K
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