Government Clears 9 SEZs, By And Large IT - June 03, 2009

The government on Tuesday gave a green signal to the fresh proposals for setting up the special economic zones. However, most of the proposals related to IT and ITES followed by the bio-technology sector.

The Board of Approval in the Commerce Ministry gave its nod to Gulf Oil Corporation as well as L & T, Emaar MGF and MM Tech to set up IT/ITES tax-free enclave in Bangalore, Mumbai, and Chenagamanadu (Kerala), respectively. Moreover, the board also sanctioned three bio-technology SEZs for Bangalore, Anantpur (Andhra Pradesh) and Ratnagiri (Maharashtra).

However, two multi-product and multi-services SEZs would come up at Kotamandal in Andhra Pradesh and Nasik in Maharashtra.

Centre Sends SEZ Ball Back In Goa''s Court - June 4, 2008

The Centre has refused to denotify three special economic zones in Goa that had already been approved and notified.Last December, Goa decided to scrap SEZs after widespread protests.

In a letter to the state government, the Commerce Ministry says there''s no provision to denotify these SEZs and advises that the state hold discussions with the developers to reach an amicable settlement.Goa Chief Minister Digambar Kamat has told NDTV that they will decide on the future course of action soon. Congress'' stand comes in contradiction to its earlier view wherein Sardinha had said that Goa can have two to three SEZs

Gujarat Sezs Looks For Rs 74,000cr Exports In 2009-10

The special economic zones (SEZs) based in Gujarat have anticipated exports to the tune of Rs 74,190.24 crore for the fiscal 2009-10. The expected exports from all SEZs in the country for 2007-08 are to the tune of Rs 67,088 crore. Of the 50-odd SEZs approved, so far, in Gujarat by the Centre, notifications have been issued for 20. Of these, six are multi-products, two for pharmaceuticals, apparel and IT-ITeS, and engineering products each, and one each concentrating on gems and jewellery, high-tech engineering products, power, textile garments, electronics products and chemicals. The multi-product SEZ, being established by Reliance Infrastructure Ltd at Jamnagar in a 1,765-hectare area, is projected to export products worth Rs 45,029 crore, while the Kandla SEZ, also a multi-product zone, would export products worth Rs 4,407 crore. In Gujarat, most of the SEZs are coming in the core manufacturing sector, while in other States these are mainly in the IT and ITeS-related services. By December 2009, investments to the tune of Rs 2,59,159 crore are hoped in these SEZs where 22 lakh new jobs are likely to be created.

Sezs To Boost India''s Infrastructure

The qualities or otherwise of special economic zones (SEZs) are under a raging discuss in India but the realty industry is upbeat about the prospect of such zones and says it will drive infrastructure development in the country. Encouraging special economic zones is the best solution to create these pockets of growth. To meet the demand for housing infrastructure, the government must also develop special residential zones. The incentives make development of SEZs a highly profitable proposition. Little wonder many developers are establishing projects under the special scheme not just in metropolitan cities but also in smaller towns.

Egom On Sezs To Assemble On April 29 Over Taxes, Sops

With the unrest on special economic zones (SEZs) petering out, an empowered Group of Ministers (eGoM) is likely to assemble here on April 29 to solve many of the issues faced by the SEZs, mostly connecting to taxation and export incentives. However, the eGoM, headed by External Affairs Minister Pranab Mukherjee, is not likely to take up the contentious demand of developers to lift the 5,000 hectare land ceiling. The land issue is not likely to come up, especially because Parliament would be in session. While the commerce ministry officials have called a meeting on April 30 of developers from Goa whose SEZ projects were trashed by the state government, the issue may also be discussed at the eGoM meeting.

Assocham Asks To Approve Rs 5,000 Cr For Setting Up Sezs In JK

Industry chamber Assocham on April 6 asked the Centre to approve a Rs 5,000-crore infrastructure package for SEZs in Jammu and Kashmir, having taken into consideration its improving security situation. Apart from tourism and hydro power sectors, Assocham has identified food processing, agro and forest-based industries, floriculture, handloom and handicraft exports, gems, leather processing and goods, herbal pharmaceuticals, bulk drugs and hosiery as most promising areas to attract investments. The chamber''s suggestion comes on the back of the Defence Ministry annoucing a five-fold hike in rentals to farmers.

Gujarat To Adopt Focused Area Approach To Spur Growth

Gujarat, with more than 50 special economic zones (SEZs) in its kitty, is now working out a special focused area approach to spur growth in sectors ranging from salt and salt-based industries to infrastructure development. According to official sources, special emphasis is being laid for boosting infrastructure development. The government has planned special incentive schemes aimed at attracting global investments into this sector. They will be known as premier or prestigious schemes. In the past years, the state has introduced such schemes but the main focus of them was industrial projects. The pioneer industries scheme, one of such leading schemes, has attracted investment of Rs 1 billion or more. Now a similar experiment is being planned for the infrastructure sector.

One of the major infrastructure development projects is the creation of state-of-the-art industrial and logistics parks. So far, the Gujarat Industrial Development Corp (GIDC) was responsible for creating the requisite infrastructure facilities in the state. Now the state government could opt for private-public partnership for implementing infrastructure projects that would also provide logistics services to meet the needs of SEZs, ports and special investment region.

Exports From Sezs Likely To Increase To Rs 1.4 Lakh Cr Next Fiscal

Ahmedabad: Exports from special economic zones (SEZs), mainly from the IT and ITeS-based zones, are expected to double to Rs 1,40,000 crore in the fiscal 2008-09.

In 2006-07, exports from SEZs touched Rs 34,787 crore and are expected to increase by nearly 93 per cent in 2007-08 to Rs 67,088 crore, according to Mr Ravi S. Saxena, Development Commissioner, Kandla SEZ, Union Ministry of Commerce and Industry. Nearly 70 per cent of this revenue came from the IT sector. The total land requirement for the formal approvals granted till date is nearly 59,933 hectares. Out of the 428 formal approvals, 160 are for sector-specific and multi-products purposes for labour-intensive manufacture of textiles and apparels, leather footwear, automobile components, engineering etc. In Gujarat, altogether 19 formal approvals have been given for SEZs and 16 others notified in which the proposed investment would be nearly Rs 1,06,924 crore with an expected job potential of 5,46,294 (direct and indirect). Of this, Rs 34,600 crore has already been invested, creating nearly 16,000 jobs.

Exports From Sezs Rise By 200-Pc In 2 Yrs

New Delhi: The Special Economic Zone (SEZ) Act of 2005, which completed two years on February 10, 2008, has witnessed a 200 per cent growth in exports from these zones during the period, and has led to an incremental investment of Rs 70,416 crore. However, developers of the zones are skeptical of finance ministry proposals, which seek to reduce fiscal incentives provided under the Act and maintain that investments of $75 billion, lined up in the next five zones, could be at stake. The finance ministry has proposed imposing export obligation in excess of 51 per cent on SEZs as well as imposing direct tax measures like Minimum Alternative Tax and Dividend Distribution Tax. Investors, including ones from abroad like Nike, have lined up long-term investment plans. If fiscal incentives are trimmed, proposed investments would be in jeopardy as investors would back out, said Ajay Nijhawan, convenor of the panel of SEZ developers within the Export Promotion Council for SEZs and EoUs (export-oriented units). According to the source, between 2003-04 and 2005-06, total value of exports from SEZs stood at Rs 50,000 crore. In 2007-08, we are likely to have exports worth Rs 67,088 crore from SEZs and in 2008-09, these are likely to cross Rs 1,00,000 crore. According to developers, the issue of revenue leakage due to SEZs is notional. Other issues pertaining to the SEZs include classification of SEZs as real estate projects by the RBI.