Lok Sabha Question No. 5883 (UNSTARRED), answered on 2017-04-10
Subject: Concessions and Benefits to SEZs
Ministry: COMMERCE AND INDUSTRY
Asked by: MANSUKHBHAI DHANJIBHAI VASAVA, B.V. NAYAK, PONGULETI SRINIVASA REDDY, CHANDRAKANT BHAURAO KHAIRE, DEVJI MANSINGRAM PATEL

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

## LOK SABHA

## UNSTARRED QUESTION NO. 5883(H) TO BE ANSWERED ON 10 th  APRIL, 2017

## CONCESSIONS AND BENEFITS TO SEZS

## 5883(H). SHRI MANSUKHBHAI DHANJIBHAI VASAVA:

SHRI B.V. NAIK:

SHRI PONGULETI SRINIVASA REDDY:

SHRI CHANDRAKANT KHAIRE:

SHRI DEVJI M. PATEL:

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

- (a) the details of the amount of tax exemptions as well as financial assistance given to Special  Economic  Zones  (SEZs)  during  the  last  three  years  and  the  current  year, year-wise along with the revenue earned by these SEZs through export during the said period;
- (b) whether  the  Government  is  planning  to  increase  the  tax  exemptions  and  other benefits  to  SEZs  and  if  so,  the  details  thereof  along  with  the  reaction  of  the Government  to  the  achievement  of  the  required  objectives  from  the  financial assistance given to SEZs;
- (c) whether  certain  developers  of  SEZs  have  sought  cancellation  of  their  projects  in some States and if so, the details thereof, State-wise along with the reasons therefor; and
- (d) whether  the  Government  has  taken  any  decision  to  re-allocate  SEZs  to  new developers or formulate any other strategy to utilize the land under SEZs and if so, the details thereof?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

- (a): The fiscal concessions and duty benefits allowed to Special Economic Zones (SEZs) are in-built into the SEZs Act, 2005 and Rules thereunder. However, no financial assistance is given to SEZs by the Central Government.
- (i) Duty exemptions for the last three years and the current year is as under:

| Years                        | Duty Exemptions (Rs. in crore)   |
|------------------------------|----------------------------------|
| 2013-2014                    | 40,239                           |
| 2014-2015                    | 40,632                           |
| 2015-2016                    | 52,216                           |
| 2016-2017 (as on 31.12.2016) | 56,418                           |

(ii) Revenue earned through exports from the SEZs during the last three years and the current year is as under:

| Years                        | Exports (Rs. in crore)   |
|------------------------------|--------------------------|
| 2013-2014                    | 4,94,077                 |
| 2014-2015                    | 4,63,770                 |
| 2015-2016                    | 4,67,337                 |
| 2016-2017 (as on 31.12.2016) | 3,58,203                 |

(b): No Madam. There is no such proposal is under consideration of the Government.

- (c): As on date 109 SEZs developers have sought cancellation of their projects in some States  as  the  Developers  have  found  the  projects  economically  unviable  in  the  changed economic situation. State-wise distribution of number of said SEZs approved for cancellation is at Annexure.
- (d): No Madam.  Land is a State subject.  Central Government only consider the proposal of  setting  up  of  new  SEZs  if  recommended  by  the  concerned  State  Government.  As  such, question of re-allocating SEZs land by the central government to the new developers does not arise.

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| State-wise distribution of number of said SEZs approved for cancellation   | State-wise distribution of number of said SEZs approved for cancellation   |
|----------------------------------------------------------------------------|----------------------------------------------------------------------------|
| States/UTs                                                                 | Numbers                                                                    |
| Andhra Pradesh                                                             | 6                                                                          |
| Dadra Nagar Haveli                                                         | 1                                                                          |
| Delhi                                                                      | 1                                                                          |
| Gujarat                                                                    | 8                                                                          |
| Haryana                                                                    | 6                                                                          |
| Karnataka                                                                  | 8                                                                          |
| Kerala                                                                     | 3                                                                          |
| Madhya Pradesh                                                             | 6                                                                          |
| Maharashtra                                                                | 28                                                                         |
| Odisha                                                                     | 1                                                                          |
| Punjab                                                                     | 4                                                                          |
| Tamil Nadu                                                                 | 10                                                                         |
| Telangana                                                                  | 14                                                                         |
| Uttarakhand                                                                | 1                                                                          |
| Uttar Pradesh                                                              | 6                                                                          |
| West Bengal                                                                | 6                                                                          |
| GRAND TOTAL                                                                | 109                                                                        |