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INDUSTRY & SERVICES : INFRASTRUCTURE

SPECIAL ECONOMIC ZONE

Fact Sheet on Special Economic Zones

Number of Formal approvals 589
Number of Notified SEZs (as on 17 July 2012) 389 (out of 589) + (7 Central Govt. + 12 State/Pvt. SEZs)
No. of Valid In-Principle Approvals 48
Operational SEZs (as on 31st March 2012) 153 (Break up: 17 are multi product SEZs, remaining are IT/ITES, Engineering, electronic hardware, textiles, Biotechnology, Gem & Jewellery and other sector specific Special Economic Zones)
Units approved in SEZs (as on 31st March 2012) 3,400
Land for SEZs Notified SEZs Formally Approved (FA) including notified SEZs
47,190 Hectare 71,502 Hectare
Land is a state subject. Land for SEZs is procured as per the policy and procedures of the respective State Government.

Investment (as on 31st March 2012)

Incremental Investment
Total Investment

SEZs Notified under the Act

US$ 32.79 billion

US$ 32.79 billion

State/Pvt. SEZs set up before 2006

US$ 1.06 billion

US$ 1.37 billion

Central Government SEZs

US$ 1.65 billion

US$ 2.06 billion

Total

US$ 35.54 billion

US$ 36.27 billion

     

Employment

(as on 31st March 2012)

Incremental Employment Total Employment

SEZs Notified under the Act

5,52,048 persons

5,52,048 persons

State/Pvt. SEZs set up before 2006

66,547 persons

79,015 persons

Central Government SEZs

91,617 persons

2,13,853 persons

Total

7,10,212 persons

8,44,916 persons

Source: Special Economic Zoness in India,Ministry of Commerce & Industry,Department of Commerce

Export Performance of SEZs

Exports from SEZs
 
2010-11
% of Total production
2011-12
% of Total production
DTA Sale (Counted for +ve NFE)
29093.02
8.11
32472.70
8.00
DTA Sale (Not counted for +ve NFE)
13881.20
3.87
29664.83
7.00
Total Exports
3,15,867.85
---
364477.73
-----

Source:Special Economic Zoness in India,Ministry of Commerce & Industry,Department of Commerce

SEZs: An Overview

The Government of India announced the introduction of Special Economic Zones in April 2000 to achieve the following objectives:

  • Generation of additional economic activity
  • promotion of exports of goods and services
  • Promotion of investment from domestic and foreigh sources
  • Creation of employment opportunities
  • Development of infrastructure facilities

Special Economic Zone (SEZ) is defined as "a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs". SEZs are an acknowledgement of the potential of export-led development strategy in accelerating economic growth.

The Indian SEZ policy provides for the development of these zones in the Government, private or joint sector. This offers equal opportunity to both Indian and international private developers. Units may be set up in SEZ for manufacture of goods and rendering of services. The units in the zone have to be net foreign exchange earners but they shall not be subjected to any pre-determined value addition or minimum export performance requirements.

The Government has converted eight Export Processing Zones located at Kandla and Surat (Gujarat), Cochin (Kerala), Santa Cruz (Mumbai-Maharashtra), Falta (West Bengal), Madras (Tamil Nadu), Visakhapatnam (Andhra Pradesh) and Noida (Uttar Pradesh) into Special Economic Zones and all are functional now. In addition, 3 new Special Economic Zones approved for establishment at Indore (Madhya Pradesh), Manikanchan - Salt Lake (Kolkata) and Jaipur have since commended operations.

Administrative Set Up

The functioning of the SEZs is governed by a three tier administrative set up. The Board of Approval is the apex body and is headed by the Secretary, Department of Commerce. The Approval Committee at the Zone level deals with approval of units in the SEZs and other related issues. Each Zone is headed by a Development Commissioner, who is ex-officio chairperson of the Approval Committee.

Once an SEZ has been approved by the Board of Approval and Central Government has notified the area of the SEZ, units are allowed to be set up in the SEZ. All the proposals for setting up of units in the SEZ are approved at the Zone level by the Approval Committee consisting of Development Commissioner, Customs Authorities and representatives of State Government. All post approval clearances including grant of importer-exporter code number, change in the name of the company or implementing agency, broad banding diversification, etc. are given at the Zone level by the Development Commissioner. The performance of the SEZ units is periodically monitored by the Approval Committee and units are liable for penal action under the provision of Foreign Trade (Development and Regulation) Act, in case of violation of the conditions of the approval.

 

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