“Seepz Has Largely Met Its Objectives”
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AHMEDABAD, BENGALURU, BHOPAL, BHUBANESWAR, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI AND PUNE 1 March 2019 1 COMMERCIAL FEATURE “SEEPZ HAS On way to create a world class infrastructure regime LARGELY The SEEPZ-SEZ has OUR POLICY IS THAT THE served the government’s ZONE SHOULD HARNESS objective to overcome the shortcomings experienced ONLY NON-POLLUTING on account of absence of INDUSTRY AND ACTIVITY. MET ITS world-class infrastructure, NEEDLESS TO SAY WE and an unstable fiscal HAVE SUCCEEDED IN THIS regime. Please elaborate. AND THE SEEPZ-SEZ HAS SURESH PRABHU SEEPZ-SEZ provides both Union Minister of Commerce & Industry warm cells in the form of SDFs CONTINUOUSLY ACHIEVED OBJECTIVES” (SDF I to VI and Gems & Jew- MORE THAN 10% EXPORT ellery I to III) and independent SEEPZ Special Economic Zone (SEZ) was primarily set up as a GROWTH. IN CONVERSATION Plots to the entrepreneurs to set WITH BALDEV SINGH, electronics manufacturing SEZ, the total exports from SEZ were around up Industrial units with all the enabling International Standard DEVELOPMENT Rs.15,000 crore during FY 2017-18 Infrastructure. As SEEPZ-SEZ COMMISSIONER, SEEPZ is exempt from power cuts, How will you assess and INVESTMENT IN SEEPZ IN fered by the SEEPZ, uninterrupted power supply is the SEEPZ has succeeded to Andheri lies in the vicinity of oth- What advantages does the evaluate the progress of SEEPZ FY 2017-18 WAS TO THE including hazard free guaranteed from generating sta- a great extent in overcoming its er commercial hubs like Bandra- SEEPZ offer for promoting and in the last 45 years? Has it met customs clearance ser- tions of Western Maharashtra. earlier shortcomings and is on Kurla Complex and Lower Parel boosting industrial climate? its objectives? TUNE OF RS. 4,122 CRORES vice that enhances the SEEPZ-SEZ is a export manu- way to creating a world class in- and suburban areas like Mulund SEEPZ is a Special Economic SEEPZ has largely met with its ob- AS COMPARED TO RS. 280.4 export-import related facturing hub with an in-house frastructure. Cumulatively, these and Vikhroli, thereby, attracting Zone in Mumbai, India. It is sub- jectives and exports from the SEW CRORES IN FY 2005-06. matters. Customs clearance facility. This measures have contributed investments from builders, as ject to liberal economic laws as were Rs. 16,500 crore during FY EMPLOYMENT HAS ALSO enables the exporters to de- hugely in ensuring a stable fiscal well as buyers. Hence, what was compared to the rest of India to 2017-2018. GROWN FROM 48,562 TO 94,112 Is the government liver their air and sea consign- regime. Improving infrastructure once a bustling commercial hub, promote rapid economic growth planning new ments well in time without any has also helped Andheri east to has now transformed into a po- using tax and business incen- What is the status of electronic PERSONS RESPECTIVELY. incentives? Please hassles and through simplified transfer froin an industrial area, tential residential hub and even tives and attract foreign invest- manufacturing in India and what elaborate. procedures. SEEPZ-SEZ offers to a sought-after residential though the demand for space is ment and technology. Since then has been the contribution of the What steps in the Ministry of No new incentive for SEZs is under unique combination of urban in- destination in Mumbai, over the still there for the potential com- many other SEZ’s have been SEEPZ towards this? Commerce taking to improve consideration. However, on the ba- frastructure, skilled labour, eco- years. From a region that was panies which show the poten- created in rest of India. SEEPZ SEEPZ-SEZ was primarily set up infrastructure in SEEPZ? sis of inputs/suggestions received friendly production, speedy and primarily known for the MIDC tial of SEEPZ-SEZ as business mainly houses Electronic Hard- as a electronics manufacturing As per the SEZ Act 2005, the SEZ from stakeholders, Department of cost effective shipping. Many IT and SEEPZ, Andheri east slowly enclave. Entrepreneurs are ware Manufacturing Companies, SEZ and manufacturing exports Authority of a Central Govt. SEZ Commerce periodically reviews the companies are enquiring with us became home for jewellery attracted by the infrastructure Software Companies and jewel- from the SEZ stood at almost is a body corporate and having operational framework of SEZs to about the availability of the land manufacturers, electronic In- facility and speedy disposal of lery exporters of India. Rs.15,000 crores during FY 2017- powers to develop infrastructure facilitate the stakeholders. and space to open their offices dustry and IT hubs This growth their issues by the Development The total export of SEEPZ- 18. This also includes exports from independently. Hence, there is no here. This clearly shows that pattern is inspite of the fact, that Commissioner Office. SEZ for the Rs. 85935.15 gems and jewellery sector. intervention from Department of The government has time crores for the last 5 years. As far Commerce in this regard. and again committed itself as Zonal Exports are concerned To what extent has the SEEPZ Apart from the above the Minis- to sustainable development. Year Year Total Physical Total Employment Total. Investment (incl. FDI mode) the same is to the tune of Rs. succeeded in accelerating try of Commerce is also supporting Please elaborate on how SEEPZ Exports (Rs. in Crores) (Nos.) (Rs. in Crores) 372750.09 crores. economic growth? the authority through Trade Infra- has achieved this. SEEPZ Pvt. SEZ SEEPZ Pvt. SEZ SEEPZ Pvt. SEZ There are more than 400 In addition to the export figures men- structure for Export scheme (TIES) The Govt. had constituted a group units inside SEEPZ. set up by tioned above, investment in SEEPZ for Infrastructure development. For under the chairmanship of Shri Baba 2013-14 16989.03 39400.09 93863 246084 2356.41 37555.53 the Investors in Electronics in FY 2017-18 was to the tune of this purpose an empowered com- Kalyani, Chairman, Bharat Forge 2014-15 16272.05 62535.91 93522 267049 2490.28 43294.08 Hardware, IT/ITES and gems 86 Rs. 4,122 crores as compared to mittee has been constituted in the Ltd. to review the SEZ policy and jewellery sector. As per the SEZ Rs. 280.4 crores in FY 2005-06. Ministry of Commerce and Indus- suggest remedial measures. The 2015-16 17941.25 53677.28 96116 267665 3110.08 45313.06 Policy of the country, the Central Employment has also grown from try to examine and approve such group has submitted its recommen- Government has been offering a 2016-17 18185.30 60324.67 97546 284938 3614.79 48110.93 48,562 persons in FY 2005-06 to projects. dations which are being examined in number of fiscal incentives and 94,112 persons in FY 2017-18. There are many incentives of- consultation with stakeholders. 2017-18 16547.52 70876.99 94112 308213 4122.10 49951.31 concessions. For instance, the Total 85935.15 286814.94 15693.66 224225.73 Continued on Page 2... 2 1 March 2019 AHMEDABAD, BENGALURU, BHOPAL, BHUBANESWAR, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI AND PUNE COMMERCIAL FEATURE SEZs, an engine for economic growth To instil confidence in investors and signal the Government’s commitment to a stable SEZ policy regime and with a view to imparting stability to the SEZ regime thereby generating greater economic activity and employment through the establishment of SEZs, a comprehensive draft SEZ Bill prepared after extensive discussions with the stakeholder ndia was one of the first in Asia to recognize the effectiveness of the Number of Formal approvals (As on 22.01.2019) 421 Export Processing Zone (EPZ) Number of notified SEZs(As on 22.01.2019) 355 + (7 Central Govt. + 11 State/Pvt. SEZs) I model in promoting exports, with Asia’s first EPZ set up in Kandla Number of In-Principle Approvals (As on 22.01.2019) 32 in 1965. With a view to overcome the Operational SEZs (As on 30th September, 2018) 231 shortcomings experienced on account of the multiplicity of controls and clearances; Units approved in SEZs (As on 30th September, 2018) 5,024 absence of world-class infrastructure, and an unstable fiscal regime and with a view INVESTMENT Investment Incremental Investment Total Investment to attract larger foreign investments in In- (As on February, 2006) (As on 30th September, 2018) dia, the Special Economic Zones (SEZs) Central Government SEZs Rs.2,279.20 cr. Rs.17,101.80 cr. Rs.19,381 cr. Policy was announced in April 2000. This policy intended to make SEZs an State/Pvt. SEZs set up Rs.1,756.31 cr. Rs.11,195.69 cr. Rs.12,952 cr. • Single window clearance for setting up and maintenance of SEZ units engine for economic growth supported before 2006 of an SEZ; • 100% Income Tax exemption on export by quality infrastructure complemented SEZs Notified under the Act - Rs.4,59,979 cr. Rs.4,59,979 cr. • Single window clearance for setting up a income for SEZ units under Section by an attractive fiscal package, both at unit in a Special Economic Zone; 10AA of the Income Tax Act for first five the Centre and the State level, with the Total Rs.4,035.51 cr. Rs.4,88,276.49 cr. Rs.4,92,312 cr. • Single Window clearance on matters years, 50% for next five years thereafter minimum possible regulations. SEZs EMPLOYMENT Employment Incremental Total Employment relating to Central as well as State Gov- and 50% of the ploughed back export in India functioned from 1.11.2000 to (As on February, 2006) Employment (As on 30th ernments; profit for next five years.