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Special Economic Zones in India

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SEZ AND WORLD TRADE
SEZ exports in 2000 : 80 !illion

"#ina : $%

Indonesia : &0%

'#ilippines : (%

"osta Rica : )%
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ROLE O* SEZS IN INDIAN E"ONO+,

to pro-ide internationall. competiti-e

en-ironment

to increase s#are in /lo!al exports

to enco0ra/e *DI and en#ance 1D'

to act as la!oratories 2or c#an/es in o0r

policies3
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O4R A''ROA"5

Special 2iscal re/ime6 to attract pri-ate

in-estments 2or de-elopers

1OI and S1 to de-elop t#e external

in2rastr0ct0re

Attracti-e 2acilities 2or settin/ 0p 0nits

7e. role 2or State 1o-ernment and pri-ate

sector in t#e de-elopment o2 SEZs
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O4R A''ROA"5 8contd39

Dere/0lation and sin/le :indo: 2or State and

"entral la:s

Le/al 2rame:or; : :indo:s in existin/ la:s

leadin/ to Special "entral and State
le/islation 2or SEZ
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LE1AL AND 'OLI", *RA+EWOR7<
AN 4'DATE

De-eloper o2 SEZ

4nits in SEZs

DTA s0pplier
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DE=ELO'ER O* SEZ
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*A"ILITIES NOTI*IED *OR
DE=ELO'ERS O* SEZs

&00% *DI allo:ed 2or:

8!9 to:ns#ips :it# residential6 ed0cational
and recreational 2acilities
8!9 2ranc#ise 2or !asic telep#one ser-ice in
SEZ3

Income Tax exemption to de-elopers 2or

an. !loc; o2 &0 .ears in & .ears
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*A"ILITIES NOTI*IED *OR
DE=ELO'ERS O* SEZs 8"ontd9

D0t. 2ree import>domestic proc0rement o2

/oods 2or de-elopment6 operation and
maintenance o2 SEZs

Exemption 2rom Ser-ice Tax and t#e "entral

Sales Tax
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*A"ILITIES NOTI*IED *OR
DE=ELO'ERS O* SEZs 8"ontd9

Income o2 in2rastr0ct0re capital 20nd>co3

2rom in-estment in SEZ exempt 2rom Income
Tax

In-estment made !. indi-id0als etc in a SEZ

also eli/i!le 2or exemption 0nder section 88
o2 Income Tax Act

De-eloper permitted to trans2er

in2rastr0ct0re 2acilit. 2or Operation and
+aintainence6 incl0si-e o2 Income Tax
!ene2its
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*A"ILITIES NOTI*IED *OR
DE=ELO'ERS O* SEZs 8"ontd9
10idelines iss0ed on /eneration6 transmission and
distri!0tion o2 po:er in SEZs
Allocation o2 po:er to SEZs 2rom central ?0ota
*reedom in allocation o2 space and !0ilt 0p area to
appro-ed SEZ 0nits on commercial !asis3
A0t#orised to pro-ide and maintain ser-ices li;e
:ater6 electricit.6 sec0rit.6 resta0rants and
recreation centres on commercial lines3
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4NITS IN A SEZ
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*A"ILITIES NOTI*IED *OR
SEZ 4NITS

No license re?0ired 2or import3

In addition to man02act0rin/6 tradin/

and ser-ices also allo:ed3

*reedom to s0!contract3

Sin/le :indo: appro-al !.

De-elopment "ommissioner o2 t#e
@one3
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*A"ILITIES NOTI*IED *OR
SEZ 4NITS 8"ontd39

No license needed to man02act0re items

reser-ed 2or SSI sector

&00% *DI allo:ed in man02act0rin/

t#ro0/# a0tomatic ro0te except in sectors
s0c# as de2ense6 atomic ener/.3

No cap on 2orei/n in-estments 2or items

reser-ed 2or SSI3
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*A"ILITIES NOTI*IED *OR
SEZ 4NITS 8"ontd39
4nder *E+A

10idelines iss0ed !. RAI in No- 2002 2or

settin/ 0p O22<s#ore Aan;in/ 4nits in
SEZs3

External commercial !orro:in/s !. 0nits

allo:ed :it#o0t an. mat0rit. restrictions3

*reedom to !rin/ in export proceeds

:it#o0t an. time limit
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*A"ILITIES NOTI*IED *OR
SEZ 4NITS 8"ontd39
4nder *E+A 8contd39

*reedom to ma;e o-erseas in-estment

Ins0rance o0tside India allo:ed

"apitalisation o2 import pa.a!les

"ommodit. #ed/in/ permitted3

*orei/n cos permitted to set 0p

!ranc#es 2or man02act0rin/ acti-ities
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*A"ILITIES NOTI*IED *OR
SEZ 4NITS 8"ontd39
"0stoms and Excise :

D0t. 2ree import or domestic

proc0rement o2 /oods 2or de-elopment6
operation and maintenance o2 SEZ 0nits3
"entral Sales Tax Act :

Exemption to sales made 2rom Domestic

Tari22 Area to SEZ 0nits3
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*A"ILITIES NOTI*IED *OR
SEZ 4NITS 8"ontd39
Income Tax Act:

&00% IT exemption 8&0A9 2or 2irst .ears6

0% 2or 2 .ears t#erea2ter and 0% o2
rein-estment 2or B .ears

'ermitted to carr. 2or:ard losses

O22s#ore Aan;in/ 4nits allo:ed to #a-e 20ll

IT exemption 2or B .ears and 0% 2or next
t:o .ears3
Ser-ice Tax:

Exemption 2rom Ser-ice Tax to SEZ 0nits3

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*A"ILITIES NOTI*IED *OR
SEZ 4NITS 8"ontd39
En-ironment

'ermitted 2acilities li;e /ol2

co0rses6 de<salination plants6
#otels and non<poll0tin/ ser-ice
ind0stries in t#e "oastal
Re/0lation Zone area

Exemption 2rom p0!lic #earin/

0nder En-ironment Impact
Assessment Noti2ication3
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*A"ILITIES NOTI*IED *OR
SEZ 4NITS 8"ontd39
Dr0/s and "osmetics :

Exemption 2rom port restriction

0nder Dr0/s C "osmetics R0les

Sin/le :indo: mec#anism in

Zones #a-in/ s0c# 0nits
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*A"ILITIES NOTI*IED *OR
SEZ 4NITS 8"ontd39
"ompanies Act :

SEZ to #a-e Re/ional o22ice o2 Re/istrar o2

"ompanies3

Exemption 2rom re?0irement o2 domicile in

India 2or &2 mont#s prior to appointment
as Director3

En#anced limit o2 Rs3 23$ crores per

ann0m allo:ed 2or mana/erial
rem0neration
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*A"ILITIES NOTI*IED *OR
DTA S4''LIER
S0pplies 2rom Domestic Tari22 Area
8DTA9 to SEZ to !e treated as p#.sical
export 0nder IT6 "0stoms and "ST Act
DTA s0pplier entitled to :

Dra:!ac;>DE'A

"ST Exemption

Exemption 2rom State le-ies

Disc#ar/e o2 its E'

IT exemption 0>s 8055"

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'RO1RESS D STATE 'OLI",

A' 64'6 +a#aras#tra6 +ad#.a 'rades#6 10Earat 6

7arnata;a 6 RaEast#an and TN anno0nced SEZ
'olic.3

Ena!lin/ noti2ications iss0ed !. +a#aras#tra6 +'6

A'6 RaEast#an and 4'

4' and +' #a-e enacted State SEZ Act F 10Earat

and +a#aras#tra li;el. to do in near 20t0re
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*EAT4RES O* STATE SEZ 'OLI",:

Exemption 2rom state sales tax >=AT and ot#er

state le-ies

Exemption 2rom electricit. d0t.

Sin/le :indo: appro-al 2or state le-el clearances

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*EAT4RE O* STATE SEZ 'OLI",
8"ontd39

Declaration o2 De-elopment "ommissioner

as La!o0r "ommissioner 0nder t#e
Ind0strial Disp0tes Act3

Simpli2ication o2 ret0rns and inspection

s.stems3
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"O++IT+ENTS *OR T5E
I++EDIATE *4T4RE
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1O=ERN+ENT O* INDIA
Enactment o2 "entral SEZ Act
Exemption o2 t#e SEZs 2rom restricti-e la!o0r la:s
*acilitation o2 external in2rastr0ct0re needs
Special emp#asis on sector speci2ic and port !ased
SEZs

Domestic and External mar;etin/ o2 SEZs

Wor;in/ :it# State 1o-ernments 2or State

SEZ le/islation
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'RO1RESS<'5,SI"AL
All 8 E'Zs con-erted into SEZs :<

7andla 8 10Earat9 : &G) 8)2 Acres9

Seep@8 +a#aras#tra9 : &G( 8&&0 Acres9

Noida 84 '9 : &G8) 8B&0 Acres9

+adras 8 T N9 : &G8) 82)2 Acres9

"oc#in 8 7erala 9 : &G8) 8&0B Acres9

*alta 8 W A9 : &G8) 8280 Acres9

=isa;#apatnam8 A'9 : &GG$ 8B)0 Acres9

Surat ( Gujarat 9 : &GG8 8&0B Acres9

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'RO1RESS<'5,SI"AL 8contd9
*ormal Appro-als 1i-en to SEZs

Indore 8 +ad#.a 'rades#9

Na-i<+0m!ai 8+a#aras#tra9

Sitap0ra 8Haip0r9

'ositra 810Earat9
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& SEZ appro-ed in principle:

Maha-Mumbai ( Maharashtra )

Vallarpadam/Puthuvypeen (Kerala)

Moradabad (U.P.)

odhpur(!ajasthan)

Nan/0ner. 8 T N9

'aradeep C 1opalp0r 8Orissa9

70lpi and Salt La;e 8W A9

A#ado#i6 7anp0r6 1reater NOIDA

=isa;#apatnam and 7a;inada6 8A '9

5assan 8 7arnata;a9
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FOR DETAILS VISIT
FOR DETAILS VISIT
WWW.SEZINDIA.NIC.IN
WWW.SEZINDIA.NIC.IN
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