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. (Sunset Clause 09.02.2006 under the provisions of the September, 2018) • Simplified compliance procedures and for Units will become effective from foreign trade policy and fiscal incentives documentation with an emphasis on self 01.04.2020) were made effective through the provi- Central Government SEZs 1,22,236 persons 1,17,634 persons 2,39,870 persons certification • Exemption from Central Sales Tax, Ex- sions of relevant statutes. State/Pvt. SEZs set up 12,468 persons 88,201 persons 1,00,669 persons emption from Service Tax and Exemp- To instil confidence in investors and before 2006 Approval mechanism and tion from State sales tax. These have signal the Government’s commitment Administrative set up of now subsumed into GST and supplies to a stable SEZ policy regime and with SEZs Notified under the Act 0 persons 16,56,071 persons 16,56,071 persons SEZs to SEZs are zero rated under IGST Act, a view to imparting stability to the SEZ Total 1,34,704 persons 18,61,906 persons 19,96,610 persons The developer submits the proposal for 2017. regime thereby generating greater eco- establishment of SEZ to the concerned • Other levies as imposed by the respec- nomic activity and employment through Exports in 2016-17 Rs. 5,23,637 Crore State Government. The State Govern- tive State Governments. the establishment of SEZs, a comprehen- ment has to forward the proposal with • Single window clearance for Central and Exports in 2017-18 Rs. 5,81,033 Crore sive draft SEZ Bill prepared after exten- its recommendation within 45 days from State level approvals. sive discussions with the stakeholders. A Exports in 2018-19 (As on 30th September, 2018) Rs. 3,33,661 Crore (Growth of 25.07% over the exports of the date of receipt of such proposal to the number of meetings were held in various the corresponding period of FY 2017-18) Board of Approval. The applicant also has The major incentives and facilities parts of the country both by the Minis- the option to submit the proposal directly available to SEZ developers include:- ter for Commerce and Industry as well to the Board of Approval. • Exemption from customs/excise duties as senior officials for this purpose. The on matters relating to central as well as ductive capacity, leading to generation of with consensus. The Board of Approval has been con- for development of SEZs for authorized Special Economic Zones Act, 2005, was state governments. The main objectives additional economic activity and creation The SEZ Rules provide for different stituted by the Central Government in operations approved by the BOA. passed by Parliament in May 2005, which of the SEZ Act are: of employment opportunities. minimum land requirement for differ- exercise of the powers conferred under • Income Tax exemption on income de- received Presidential assent on the 23rd • Generation of additional economic ac- The SEZ Act 2005 envisages key role ent class of SEZs. Every SEZ is divided the SEZ Act. All the decisions are taken rived from the business of development of June, 2005. The draft SEZ Rules were tivity for the State Governments in Export Pro- into a processing area where alone the in the Board of Approval by consensus. of the SEZ in a block of 10 years in 15 widely discussed and put on the website • Promotion of exports of goods and ser- motion and creation of related infrastruc- SEZ units would come up and the non- The Board of Approval has 19 Members. years under Section 80-IAB of the In- of the Department of Commerce offer- vices ture. A Single Window SEZ approval processing area where the supporting come Tax Act. (Sunset Clause for De- ing suggestions/comments. Around 800 • Promotion of investment from domestic mechanism has been provided through infrastructure is to be created. Facilities and Incentives velopers has become effective from suggestions were received on the draft and foreign sources a 19 member inter-ministerial SEZ Board The incentives and facilities offered to 01.04.2017) rules. After extensive consultations, the • Creation of employment opportunities of Approval (BoA). The applications duly The SEZ Rules provide for: the units in SEZs for attracting invest- • Exemption from Central Sales Tax SEZ Act, 2005, supported by SEZ Rules, • Development of infrastructure facilities recommended by the respective State • “Simplified procedures for development, ments into the SEZs, including foreign (CST). came into effect on 10th February, 2006, It is expected that this will trigger a Governments/UT Administration are operation, and maintenance of the Spe- investment include:- • Exemption from Service Tax (Section 7, providing for drastic simplification of pro- large flow of foreign and domestic invest- considered by this BoA periodically. All cial Economic Zones and for setting up • Duty-free import/domestic procurement 26 and Second Schedule of the SEZ Act). cedures and for single window clearance ment in SEZs, in infrastructure and pro- decisions of the Board of approvals are units and conducting business in SEZs; of goods for development, operation (Source: sezindia.nic.in)

On way to create a world class GST and EWB SEZ Policy review infrastructure regime ply goods and services to the zone, ... Continued from Page 1 committee report introduce new technology, develop he Government had constituted a Group of emi- zones are deemed as foreign territo- backward regions by locating such applications for SEZs ries as far as trade operation, duties zones in these areas and attracting nent persons under the Chairmanship of Baba Supply from and to special economic zones has a little different treatment than Kalyani, Chairman, Bharat Forge to study the and tariffs are concerned. The units industries, provide a stimulus to the the regular supplies. In simple words, even when SEZs are located in the same T Special Economic Zone (SEZ) Policy of India in (100% export oriented) also have full economy and test key policy reforms June, 2018. flexibility in operations. They are ex- in these ‘pilot areas’. With such attrac- country, they are considered to be located in a foreign territory The Group submitted its report to the Government recent- empt from indirect taxes and upto a tive incentives, the SEEPZ is poised ly. The key recommendations of the Group are as under: certain extent and period from direct for a massive expansion in economic s every person is affect- GST and SEZ responsible for the generation of taxes also. No export and import du- activity, which in turn will automati- ed with the implications Being in a SEZ can be advanta- e-Way bill. Framework shift from export growth to broad-based ties, no excise duties, no central or cally boost employment generation of GST and E-Way bill geous to a certain extent when Let’s understand this with an Employment and Economic Growth (Employment and state sales tax and no service tax are and export. A (EWB), Special econom- it comes to taxes. Any supply of Example: Economic Enclaves-3Es). levied. According to SEZ Act 2005, ic zones (SEZ) too are goods or services or both to a • XYZ is and unit in an SEZ locat- the firms are eligible for getting an In- Formulation of separate rules and procedures for You have been witness to the covered under its wings. SEZ developer/unit will be consid- ed in Karnataka come Tax holidays also. Rental rates manufacturing and service SEZs. growing electronics world market ered to be a zero-rated supply. In • A is the recipient of goods manu- are very less compared to the outside potential. How can the SEEPZ SEZ for tax purposes other words, supplies into SEZ are factured by the SEZ and is locat- Shift from supply-driven to demand-driven approach for SEEPZ which attracts entrepreneurs exploit this market? A special economic zone (SEZ) exempt from GST and are consid- ed in Bangalore. 3Es development to improve efficiency of investment- for the investment and production. The success of SEEPZ is evident in is a dedicated zone wherein busi- ered as exports. • The value of the goods being based on certain industries, current level of existing Generally, it is argued that the SEZ its future plans. Vertical expansion nesses enjoy simpler tax and transported is Rs. 75000. inventory in the region. concept is attractive because it is with additional FSI (floor space in- easier legal compliances. SEZs Therefore, the suppliers supply- Enabling framework for Ease of Doing Business much easier to resolve the problems dex) will offer opportunities to existing are located within a country’s na- ing goods to SEZs can: How is GST applicable (EoDB) in 3Es in sync with State EoDB initiatives. One of infrastructure and governance on a units to modernize expand and diver- tional borders. However, they are • Supply under bond or LUT with- in this case? integrated online portal for new investments, operational limited geographical area than it is to sify their operations as SEEPZ-SEZ treated as a foreign territory for out payment of IGST and claim As stated earlier, the movement requirements and exits related matters. resolve them countrywide. is surrounded by commercial and tax purposes. This is why the sup- credit of ITC; or from an SEZ is considered to be Enhance competitiveness by enabling ecosystem Also SEEPZ-SEZ is fully commit- industrial areas and situated in the ply from and to special economic • Supply on payment of IGST and an interstate movement. In this development by funding high-speed multi-modal ted to provide Environment-friendly centre of the city. Therefore our policy zones have a little different treat- claim refund of taxes paid. case, the goods have moved out connectivity, business services and utility infrastructure. infrastructural Green Zone. SEEPZ is that the Zone should harness only ment than the regular supplies. In When a SEZ supplies goods of the SEZ, though it is moved Critical to provide support to create high quality has been certified a Gold Certificate non-polluting industry and activity. simple words, even when SEZs or services or both to any one, it within the same state of Karna- infrastructure either within or linked to the zones eg. in March 2018 for achieving Green Needless to say we have succeeded are located in the same country, will be considered to be a regu- taka, it will be considered as an High Speed Rail, Express roadways, Passenger/Cargo Campus Standards required for fol- in this and the SEEPZ-SEZ has con- they are considered to be located lar inter-state supply and will at- Inter-state supply and IGST will be airports, shipping ports, warehouses etc. lowing level of certification under the tinuously achieved more than 10% in a foreign territory. SEZs are not tract IGST. The exception to this applicable on this supply. Promote integrated industrial and urban development- Indian Green Building Council (IGBC) export growth despite the adverse considered as a part of India. walk to work zones, States and center to coordinate on Green Campus Rating System. world economic circumstances. Based on this it can be clearly the frame work development to bring linkages between said that under GST, any supply all initiatives. How would you rate the investor There has been a talk of SEEPZ to or by a Special Economic Zone Procedural relaxations for developers and tenants to confidence level given the present getting a facelift. Can you please developer or Special Economic improve operational and exit issues. SEZ policies? share details? Zone unit is considered to be an SEZ’s are the only Industrial en- The Maharashtra Industrial Devel- Inter-state supply and Integrated Extension of Sunset Clause and retaining tax or duty claves which have been provided opment Corporation (MIDC) and Goods and Service tax (IGST) will benefits. with Zero Duty facility with other in- the SEEPZ Development Commis- be applicable. Broad-banding definition of services/allowing multiple centives as mentioned in the SEZ sioner’s office has several infra- services to come together. Act & Rules and GST laws. I also find structure projects in hand. The two What are Export/ Import Additional enablers and procedural relaxations. that since there is no deviation in the agencies are constantly coordinating SEZ’s are considered to be lo- Unified regulator for IFSC. earlier and current policy, therefore to improve things - roads, garbage cated in a foreign territory and Utilising Multi Services SEZ IFSC for all the inbound and Investors confidence level is already disposal, street lights etc. We have thus the transactions with SEZ’s out bound investment of the country. boosted and their interest have been also submitted the revised moderni- can be classified as Exports and safeguarded in the current fiscal re- sation projects to TIES, Ministry of Incentives for availing services from IFSC SEZ by Imports. gime and Investors need not worry Commerce 86 Industry for financial domestic institutions. is, when a SEZ supplies goods Is EWB required to be about the policy parameters. help by Central Government and we Here, Export means: or services or both to a Domestic generated? If yes, who Extension of benefit under services Export incentives are committed that all the facilities at • Taking goods or services out of Tariff Area (DTA), this will be con- is supposed to generate scheme. What is the scope for further SEEPZ-SEZ will be modernised and India from a special economic sidered as an export to DTA. it? Allowing alternate sectors to invest in sector specific expanding the economic activity will be at par with the rest of the world. zone by any mode of transport or Since the movement of goods SEZs/ 3Es. and employment in the SEEPZ? • Supply of goods or services from E-Way Bill and SEZ from and to SEZ is considered as Flexibility of long-term lease for developers and tenants. The main objective of the SEZ scheme The SEEPZ has been a high one unit/developer in the SEZ to Under GST, transporters should inter-state supply of goods and Facility of sub-contracting for customers outside 3Es/ is to provide delineated, duty-free in- security zone because of another unit in the same SEZ or carry an E-Way Bill when moving the value of this supply is more SEZs without any restriction or cap at any level. dustrial zones with world class infra- business importance and high another SEZ. goods from one place to another if than Rs. 50,000, EWB will have to structure, internationally competitive concentration of work force. This Specified domestic supplies supporting ‘Make in India’ the value of these goods are more be generated. XYZ is required to production environment and fast track also leads to hassles. How do you to be considered in NFE computation. Import means: than Rs. 50,000. SEZ supplies are generate an EWB. The transporter clearance system for attracting pri- tackle such a situation? • Bringing goods or services into treated how the other inter-state may choose to generate the EWB Export duty should not be levied on goods supplied to vate investments, especially foreign SEEPZ is a high security entry zone. a special economic zone from a supplies are treated. The SEZ units if XYZ does not generate it. Fur- developers and used in manufacture of goods exported. direct investment (FDI) for setting up Employees of all companies need to place located outside India, by or developers will have to follow ther, it is important to note that, Flexibility in usage of NPA by developers and sale space export oriented units. The broad ob- have permanent SEEPZ gate pass to any mode of transport the same EWB procedures as the if XYZ is an unregistered dealer to investors/ units. jectives of the SEZ policy are: Attract gain entry inside SEEPZ (including the • Receiving goods or services others in the same industry follow. under GST, and ‘A’ is a registered Infrastructure status to improve access to finance and Foreign Direct Investment (FDI), earn Custodian’s office, Bank, Customs). from one unit/developer in the In case of supplies from SEZ dealer, ‘A’ will have to generate enable long term borrowing. foreign exchange and contribute to SEEPZ-SEZ has a well groomed se- SEZ by another unit/developer to a DTA or any other place, the the EWB. Promote MSME participation in 3Es and enable exchange rate-stability, boost- the ex- curity system, including a high secu- located in the same SEZ or an- registered person who facilitates (https://cleartax.in/s/sez-eway- manufacturing enabling service players to locate in 3E. port-sector,particularly non-traditional rity entrance to avoid any pilferage of other SEZ. the movement of goods shall be bill-gst-applicability) Dispute resolution through arbitration and commercial exports, create jobs and raise stand- duty-free goods. Due to its business courts. ard of living, transfer new skills and importance and high concentration of expertise to local human resources, work force, SEEPZ has to be insulated THIS SPECIAL FEATURE create backward & forward linkages from issues relating to crime and ter- E-mail: [email protected] IS CONCEPTUALISED AND (Press Information Bureau, Government of India, to increase the output and raise the rorism. However, gate pass and visitor Contact: 9820053521 EXECUTED BY Ministry of Commerce & Industry) standard of local enterprise that sup- pass rules continue till date. AHMEDABAD, BENGALURU, BHOPAL, BHUBANESWAR, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI AND PUNE 1 March 2019 3 COMMERCIAL FEATURE

Maharashtra’s business friendly SEZ SEZs contribute to regional List of Operational SEZs - SEEPZ-SEZ and national economy Sl. Name of the Developer egional disparities are resources causes differences by nature in relation to their policy framework No. the result of our unfin- precisely spatially originated in rural and urban hinterlands. 1 SEEPZ Special Economic Zone ished task of nation income generation. The higher Typically SEZs are com- R building. Therefore the resources concentration pletely separate enclave. The Maharashtra comes at third place in the list of maximum 2 Serum Bio-pharma Park balanced regional de- and the better the intra and in- isolation of SEZs from their hin- number of SEZs. There are 30 SEZs in the state. Apart 3 EON Kharadi Infrastructure Private Limited (Phase-I) velopment is necessary for the terregional links are the higher terland, however, has greatly harmonious growth of federal income will be. Summing up, influenced their development from SEEPZ-Mumbai, which was set up by the Central 4 Maharashtra Industrial Development Corporation state like India. The co-exist- the higher the urbanisation influence. The main local ben- ence of relatively developed degree is, the higher income efits they have created is em- Government prior to enactment of SEZs Act 2005, there are 5 WIPRO Limited and economically depressed will be. On the other hand, we ployment. As per information 29 more operational SEZs in Maharashtra that has been 6 Maharashtra Industrial Development Corporation states and even regions within know regional income differ- collected by a researcher for each state is known as Re- ences have not disappeared 110 SEZs, direct employment notified under SEZs Act 2005. 7 Syntel International Private Limited gional Imbalance. Economic after decades or even centu- to the tune of 2.14 million em- 8 The Manjri Stud Farm Private Limited backwardness of a region ries of economic development. ployees and indirect employ- he Government of Ma- er Generation be subject to environment and indicated by symptoms like ment to the tune of 2.94 million harashtra has adopt- • Micro, Small and Medium forest norms. “States that the 9 HGP Community Pvt. Ltd. (Formerly Hiranandani Builders) high population pressure on SEZs Impact on employees was generated. ed the SEZ Policy for Enterprise Policy highlights modification is a bid to “utilise 10 Wokhardt Infrastructure Development Limited land, excessive dependence Regional Development While indirect employment will T developing Special • Government is planning to the maximum development on agriculture, absence of The distribution of medium vary widely across SEZs, near- Economic Zones in initiate measures for avail- potential of land, to increase 11 Infosys Technologies Limited large-scale urbanisation, low and large SEZs (50 hectares ly 60 % of direct employment the state. The SEZs, ear- ability of cheap and timely fi- the supply of affordable hous- productivity in agriculture and and above) by major districts i.e. 1.25 million employee is 12 Maharashtra Airport Development Company Limited (MADC) marked as duty-free enclaves, nance, technology up-grada- es in the market, to develop cottage industries, etc. shows that nearly three-quar- employed by the IT alone. have a relaxed and business- tion, upgradation of skill sets smart townships through pri- 13 Maharashtra Industrial Development Corporation Limited Economic growth is affect- ters of all approved SEZs SEZs contribute to region- friendly policy regime, aimed of those employed in MSME vatisation without any expend- (MIDC) ed by the way economic activ- are located in four States al and national economy and at promoting rapid industrial enterprises and marketing. iture to the governments,” the ity is performed in the space.A - Andhra Pradesh, Gujarat, lead to generation of employ- development and employment • Setting up of a special insti- new notification said. 14 Magarpatta Township Development and Construction high percentage of per capita Maharashtra and Tamil Nadu. ment, demand for large indus- generation. tution for the SMEs The new norm will dilute the Company Ltd. income, whether regional or These states are all rela- trial machinery, creation and • New small scale industries condition of contiguous land for 15 Quadron Business Parks Pvt. Ltd (Formerly Quadron national, is determined by spa- tively well developed states utilisation of transport sys- The approved policy are eligible for capital subsidy such project, if the total land Business Parks Ltd.)(Formerly DLF Akruti Inffopark (Pune) tial variables; i.e., variables with high industrial capacity. tems and logistical infrastruc- regime includes: • Special capital incentives parcel of a developer is more Limited) which take into account the These are also highly urban- ture. These are very long-term • Exemption of all state and (grants) are offered for set- than 200 hectares or 494 acres. spatial distribution of economic ised. Obviously, investment is benefits that the regions will local taxes and levies for ting up small-scale industries In such a case, the project can 16 Qubix Business Park Pvt. Ltd. (formerly Neopro resources. Economic activity, channelized to areas of high receive. As a result of the de- transactions with the SEZ in backward units be segregated as long as every Technologies Pvt. Ltd. /Flagship Infrastructure Private regardless claims by micro and levels of industry and invest- mand for these activities, ad- and for supply from domestic • Interest subsidy is also of- parcel is more than 100 acres Limited) macro economists does not ment which further propels ditional indirect benefits spill tariff areas to the SEZ fered to new textile, hosiery and within a 5-km radius. 17 Serene Properties Private Limited develop on an imaginary point these states to showcase over to other nearby regions • Exemption from stamp duty and knitwear SSI units The SEZ policy was first in space; it rather takes place their success further. SEZs as well as far off regions. and registration fees The Maharashtra state approved in 2004, to set up 18 Pune Embassy India Pvt. Ltd.(formerly Dynasty Developers unevenly in such a space. An as regional development (Source: www.worldfinance. • Grant of labour and environ- government last year tweaked large planned townships with Pvt. Ltd.) uneven spatial distribution of mechanism, are autonomous com) ment related permits and ap- its Special Economic Zones integrated infrastructure and 19 Sunstream City Private Limited (formerly M/s. Zeus provals through a dedicated (SEZ) policy. In its new notifi- civic amenities on the outskirts Infrastructure Private Limited) single window mechanism cation, it says that land can be of metros. But this policy didn’t • Permission to generate elec- converted into integrated town- have many takers back then. 20 Wardha Power Company Pvt. Ltd. Technologically advanced Aurum Platz IT Park tricity for own consumption ships spread over 100 acres. But the BJP-led government 21 Maharashtra Industrial Development Corporation • Expeditious process for land The revised norms have been tweaked the policy to offer urum Platz IT Park is a 3 million square agreement to acquire approximately 30% of the acquisition to set up SEZs approved by the state cabinet. higher incentive Floor Space 22 “Persipina Developers Pvt. Ltd. (PDPL) feet IT-ITES SEZ development in Navi total development potential in ‘Q PARĆ’ on cer- The SEZ Policy aims at cre- The new state govern- Index (FSI) in the range of (formaly Sunny Vista Realtors Private Ltd)” Mumbai branded as Q PARĆ, located tain leasing milestones, based on a purchase ating a simple and transparent ment’s revised rule will not 1.7 to 2, allow development in A on Thane-Belapur Road, a key IT cor- price to be determined in accordance with a system and procedures to at- just allow unutilised land un- non-development zone, agri- 23 Arshiya International Limited ridor in Navi Mumbai. The campus pre-agreed formula which considers key fac- tract large foreign and domes- der notified SEZs, but also culture lands to make these 24 Indiabulls Industrial Infrastructure Limited boasts of technologically advanced energy ef- tors such as rent, occupancy and capitalisation tic investment in infrastructure land falling within the buffer townships more feasible. ficient buildings with predictive maintenance, rates. for SEZ’s in Maharashtra. zones of national parks, un- The developer will also 25 Khed Economic Infrastructure Private Limited acres of green spaces, exclusive Club, health Ashish Deora, Founder & Chief Executive der environmentally sensitive be given ten years to com- 26 Maharashtra Industrial Development Corporation Gym, Amphitheatre with a mountain scape, Officer, Aurum Ventures said, “Navi Mumbai SEZ policy of zones, under afforestation plete the project and build crèche, sports courts, urban forests amongst is attracting major Multinationals and captive Maharashtra zones and owned by tribals integrated infrastructure in- 27 Gigaplex Estate Private Limited other amenities. The IT-SEZ is attracting rent- technology businesses with its existing robust (post approval from the gov- cluding roads, sewage, water als around INR 55 per sq ft. The campus has 8 rail and road infrastructure, the upcoming In- provides attractive 28 iGate Global Solutions Ltd. incentives as follows: ernment), to be included in supply, social infrastructure lakh sq ft IT-SEZ office spaces operational with ternational Airport, availability of talent pool • Hundred per cent exemption the ambit of these projects. like schools, market, hospitals 29 Aurum Platz IT Pvt. Ltd. (Formerly Loma IT Park, 8 IT-ITES SEZ units working out of it. Additional and quality housing. Aurum Platz IT Park is from Stamp Duty and Regis- But the state government within the area. Developers Pvt. Ltd.) 8 lakh sq ft of IT SEZ office spaces will be op- developing a premium green campus having tration Fees has also said that the devel- (Source: www.doingbusi- erational in December, 2019. the most technologically advanced buildings in 30 EON Kharadi Infrastructure Private Limited (Phase-II) • Permission for Captive Pow- opment on these lands, will nessinmaharashtra.org) Ascendas India Trust has entered in an Navi Mumbai”.

SP INFOCITY PUNE Phursungi, Pune boasts of eco-friendly design, modern infrastructure and beautiful landscape, for fostering an effective work environment. Also, efficiently laid out floor plates cater to a broad range of space requirements.

Eco sustainable SEZ catering to several marquee tenants

SP INFOCITY IS A GRADE A OFFICE SPACE IN PUNE HOUSING SPACIOUS OFFICES COUPLED WITH SEVERAL AMENITIES AND GREEN SPACES

SP Infocity offers suitable environment for businesses to grow and thrive. Located on the Pune-Saswad road, near Hadapsar bus depot, SP Infocity is conveniently within easy reach of all major hubs and destinations. The property has received several accolades, including the Bloomberg International Property Award.

 ~79 acres campus style low rise development with an IT park and SEZ  Certified green building with LEED gold rating for operations and maintenance  Owned by reputed institutional investors, SP Infocity is a Grade A SEZ space with ~1.37mn sqft area, of which ~1.11mn sqft is leased to multinational tenants like Amazon, Accenture, WNS and IBM; ~0.21mn sqft is as hard option and ~0.05mn sqft space is vacant  Development of ~1mn sqft in IT is underway, while in SEZ, there is future potential of 3mn sqft of which 1.2mn sqft construction to commence  2 food courts, day care center, ATMs  Open space to built up ratio 1:1

SITE ADDRESS: SP Infocity, Survey No. 209, Pune Saswad Road, Phursungi, Pune - 412308 CALL +91 20 6672 6300 4 1 March 2019 AHMEDABAD, BENGALURU, BHOPAL, BHUBANESWAR, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI AND PUNE COMMERCIAL FEATURE

financial services hub, sport- ing a new airport, rail line and many plush, sky-rise of- Exports from SEZs stand at Historical perspective and fices. In 1993, one year after its enterprise zone status had expired, the area employed Rs. 3.33 lakh crore; Employment international experience on SEZs 7,000 people. Today it em- ploys 90,000, emphasising how transformative these generation at 19.96 lakh persons zones can be if done right. Between 1981 and 1986, he Special Economic Zones (SEZs) The details of employment generation the UK spent almost £300m policy was launched in April, 2000. in SEZs during last three years and on enterprise zones predomi- The Special Economic Zones Act, current year are: nantly in areas that had lost T 2005, was passed by Parliament their manufacturing bases. in May, 2005 which received Presi- Year Employment in According to a study carried dential assent on the 23rd of June, 2005. SEZs* (persons) out in 1987, only 2,800 new The SEZs Rules, 2006 came into effect on 2015-2016 15,91,381 companies were established 10th February, 2006. The salient features as a result of them, and after of the SEZ scheme are:- 2016-2017 17,31,641 local transfer of workers into i. A designated duty-free enclave to be 2017-2018 19,77,216 account, just 13,000 jobs had treated as a territory outside the cus- been created. toms territory of India for the purpose 2018-2019 19,96,610 This has not deterred the of authorised operations in the SEZ; (Upto 30.09.2018) current British government, ii. No licence required for import; * calculated on cumulative basis. however, who announced iii. Manufacturing or service activities al- (The provision of SEZs Act, 2005 are SEZs have a place in developing countries, it is a good policy to promote plans to create 24 new enter- lowed; applicable on manufacturing and services prise zones across England, in- iv. The Unit shall achieve Positive Net sectors.) manufacturing and export and to link India into the global production network. cluding in Liverpool, Sheffield, Foreign Exchange to be calculated Manchester, Cornwall and Lon- cumulatively for a period of five years The policy is currently being implemented properly along with other important don. The re-emergence over from the commencement of production; reforms focusing on ease of doing business which will be beneficial in the long- this type of urban regeneration v. Domestic sales subject to full customs FISCAL CONCESSIONS might have something to do duty and import policy in force; AND DUTY BENEFITS term. It has positive impacts on exports, employment and investment. The SEZ with the dire state of the UK vi. Full freedom for sub-contracting; HAVE BEEN ALLOWED TO will continue to play a key role in India’s development government’s finances and the vii. No routine examination by customs au- DEVELOPERS AND UNITS need to encourage businesses thorities of export or import cargo; AS PER THE SEZ ACT AND to pick up the slack. viii. SEZ developers, co-developers and pecially designated the area around cessful. In 2001, another study units enjoy direct tax and indirect tax RULES THEREUNDER. AS ON areas of low tax and them. The relaxed THE NEED TO STIMULATE showed that an enterprise SEZs in developing benefits as prescribed in the SEZs Act. 30.09.2018, EXPORTS FROM regulation are be- regulations also ECONOMIC GROWTH HAS zone in Louisville, Kentucky countries In addition to seven Central Govern- SEZS WAS RS. 3,33,661 S ing used by countries encourage entre- INCREASINGLY LED TO had predominantly benefited In 2000, India’s government ment Special Economic Zones (SEZs) and CRORE AND EMPLOYMENT around the world to preneurs to grow GOVERNMENTS CREATING A larger businesses over local enthusiastically announced 11 State/Private Sector SEZs set-up prior attract businesses to under- their businesses entrepreneurs, while not help- plans for enterprise zones to the enactment of the SEZs Act, approv- GENERATION WAS ABOUT developed areas. The need in a newly thriving NUMBER OF INCENTIVES FOR ing the local communities. across the country, with an als have been accorded to 420 proposals 19.96 LAKH PERSONS AND to stimulate economic growth environment. BUSINESSES TO RELOCATE SEZ Act announced in 2005 to for setting up of SEZs in the country. Of 355 INVESTMENT OF RS. 4,92,312 has increasingly led to gov- In urban ar- Reversing the prove the government’s com- notified SEZs, 230 SEZs are operational. CRORE HAS BEEN MADE. ernments creating a number eas, these incentivised loca- restoring cities. Industrial jobs manufacturing mitment to the policies, com- SEZs being set up under the SEZ Act, of incentives for businesses tions are known as enterprise relocated away from cities that decline ing into force a year later. The 2005 and SEZs Rules, 2006 are primar- to relocate. While direct in- zones, and were developed depended on them, decimat- The UK’s use of enterprise objectives of the policy were to ily private investment driven. No funds are to developers and units as per the SEZ Act vestment in infrastructure is in the UK and US. Until the ing communities. The US de- zones dates back to the generate additional economic sanctioned by the Central Government for and Rules thereunder. As on 30.09.2018, one way of boosting a poor 1970s, most governments in- veloped a range of enterprise 1980s, in the aftermath of activity, promote exports, at- setting up of SEZ. However, fiscal conces- exports from SEZs was Rs. 3,33,661 crore area, Special economic zones vested directly in areas to spur zones in key cities, such as the decline manufacturing tract foreign and domestic sions and duty benefits have been allowed and employment generation was about (SEZs) – also known as enter- growth. However, after the re- San Diego and Baltimore, as industry throughout the coun- investment, create jobs, and 19.96 lakh persons and investment of Rs. prise zones – are areas that cessions of those decades, a well as parts of South Boston try, although the level of their enhance infrastructure. Com- The details exports in manufacturing 4,92,312 crore has been made. governments allow relaxed new way of thinking for urban and New Jersey. success has been somewhat pliance was simplified, while a sector from SEZs during last three The Government had constituted regulations, minimal corpora- regeneration emerged, with One particularly success- mixed. While the London number of tax incentives and years and current year are: a Group of eminent persons under the tion tax and bureaucracy for both the British Centre for Pol- ful enterprise zone was found Docklands regeneration that concessions were made. Chairmanship of Baba Kalyani, Chair- a temporary period in order to icy Studies and the American in Evansville, Indiana. Estab- transformed a dilapidated Although the SEZs have Year Exports of the SEZs man, Bharat Forge to study the Special encourage private investment. Heritage Foundation suggest- lished in 1984, it offers busi- area near the River Thames tended to focus on urban re- in manufacturing Economic Zone (SEZ) Policy of India on Many of these SEZs offer ing Keynesian-style policies nesses tax credits within a 2.1 – formerly the world’s largest gions that require infrastruc- sector (Rs. in Crore) 04.06.2018. One of the terms of the refer- no business taxes whatsoever, be abandoned in favour of square mile area. In a study in port – is held up as a prime ture improvements, the gov- 2015-2016 2,14,501 ence for the group was to make the SEZ allowing businesses to set up reduced tax, deregulation and 1989, the area was shown to success story, the UK is lit- ernment has also created a Policy WTO compatible. The Group has in the area free from the con- other incentives. have been exceptionally cost- tered with less than success- number of larger SEZ’s that 2016-2017 2,37,502 submitted its report to the Government and straints of the taxman. The idea It was the decline of the in- effective, and had boosted em- ful attempts of urban renewal. stretch across a number of 2017-2018 2,67,801 its recommendations are being examined is that the companies will heav- dustrial regions of both these ployment in the area consider- The Docklands saw Ca- regions, such as the Delhi to through Inter-Ministerial consultations. ily invest the money saved from countries that spurred them ably. However, the experience nary Wharf developed into Mumbai Industrial Corridor. 2018-2019 (Upto 1,60,699 (Press Information Bureau, Government not paying tax into improving to find an alternative way of in the US has not all been suc- one of the world’s leading (Source: www.journalijar.com) 30.09.2018) of India, Ministry of Commerce & Industry)