Lok Sabha Question No. 1487 (UNSTARRED), answered on 2018-03-05
Subject: Problems Faced by SEZ Developers
Ministry: COMMERCE AND INDUSTRY
Asked by: SHIVAJI ADHALRAO PATIL, PRITAM GOPINATH MUNDE, SHRIKANT EKNATH SHINDE, VINAYAK BHAURAO RAUT, ADVOCATE NARENDRA KESHAV SAWAIKAR, ANANDRAO  ADSUL, DHARMENDRA YADAV, Shrirang Appa Barne

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1487 TO BE ANSWERED ON 05 th  MARCH,2018

## PROBLEMS FACED BY SEZ DEVELOPERS

1487.  SHRI ADHALRAO PATIL SHIVAJIRAO:

DR. PRITAM GOPINATH MUNDE:

DR. SHRIKANT EKNATH SHINDE:

SHRI VINAYAK BHAURAO RAUT:

ADV. NARENDRA KESHAV SAWAIKAR:

SHRI ANANDRAO ADSUL:

SHRI DHARMENDRA YADAV:

SHRI SHRIRANG APPA BARNE:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether  the  Special  Economic  Zone  (SEZ)  Developers  are  facing  certain  issues/problems including  some  complaints  about  the  misuse  of  the  policy  which  create  hindrance  for development of SEZs and if so, the details thereof;
- (b) whether  the  industry  has  time  and  again  requested  the  Ministry  of  Finance  to  consider restoring tax benefits to these zones for supporting the sector and generating jobs and if so, the response of the Government in this regard;
- (c) whether the SEZs which emerged as major export hubs in the  country has started losing sheen after the imposition of minimum alternate tax and introduction of sunset clause and if so, the reaction of the Government thereto;
- (d) whether the Government has approved 423 SEZs till December, 2017 and if so, the number of SEZs out of that made operational so far; and
- (e) whether the quantum of  exports from these zones grew during April September 2017-18 and if so, the details thereof along with the steps taken by the Government to resolve the issues/problems being faced by the SEZ promoters?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- (a): The Government, on the basis of inputs/suggestions received from stakeholders on the policy and operational framework of the SEZ Scheme, periodically reviews the policy and operational framework of SEZs and takes necessary measures so as to facilitate speedy and effective implementation of SEZs.

(b): Yes Madam, Ministry of Commerce and Industry had recommended the restoration of  original  exemption from MAT and withdrawal of Sunset Clause for SEZ Developers and Units to Ministry of Finance. (c): The SEZs Act, 2005 was enacted on 23 rd June, 2005.  In the initial 5 years (i.e. 20072008  to  2011-2012)  there  was  186%  increase  in  the  new  units  in  SEZs.    However,  post imposition of MAT there has been only 131% increase in the new units in the next 5 years (i.e. 2012-2013 to 2016-2017) in SEZs. (d): In  addition  to  Seven  Central  Government  Special  Economic  Zones  (SEZs)  and  11 State/Private  Sector  SEZs  set-up  prior  to  the  enactment  of  the  SEZs  Act,  2005,  approvals have been accorded to 423 proposals for setting up of SEZs in the country.  Presently, out of 357 notified SEZs a total of 221 SEZs are operational. (e): The total exports from SEZs as on 30 th September, 2017 i.e. in the second quarter of the current financial year 2017-18, has been to the tune of Rs. 2,66,773 crore approximately, registering a growth of 13.09% over the exports of corresponding period of the previous financial year.

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