Lok Sabha Question No. 1058 (UNSTARRED), answered on 2018-12-17
Subject: Development of SEZs
Ministry: COMMERCE AND INDUSTRY
Asked by: PARBHUBHAI NAGARBHAI VASAVA, George Baker

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

## LOK SABHA UNSTARRED QUESTION NO.1058(H) TO BE ANSWERED ON 17 th  DECEMBER,2018

## DEVELOPMENT OF SEZs

## 1058(H). SHRI PARBHUBHAI NAGARBHAI VASAVA: SHRI GEORGE BAKER:

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

- (a) the salient features of the Special Economic Zone (SEZ) policy;
- (b) the details of the SEZs identified and established under this policy in the country, State/UT-wise including Gujarat particularly in the far flung areas;
- (c) the details of the funds sanctioned, allocated and utilized for development of SEZs under  this  policy  during  the  last  three  years  and  the  current  year  along  with  the percentage of share fixed for Union and the States therein;
- (d) the details of the targets set and achievements made under the policy so far; and
- (e) the steps taken/being taken by the Government to make it WTO compatible?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

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

- (a): The  Special  Economic  Zones  (SEZs)  policy  was  launched  in  April,  2000.    The Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 which received Presidential assent on the 23rd of June, 2005.  The SEZs Rules, 2006 came into effect on 10th February, 2006.  The salient features of the SEZ scheme are:-
- (i) A designated duty free enclave to be  treated as a  territory outside the customs territory of India for the purpose of authorised operations in the SEZ;
- (ii) No licence required for import;
- (iii) Manufacturing or service activities allowed;
- (iv) The  Unit shall achieve Positive Net Foreign Exchange  to be calculated cumulatively for a period of five years from the commencement of production;
- (v) Domestic sales subject to full customs duty and import policy in force;
- (vi) Full freedom for subcontracting;
- (vii) No routine examination by customs authorities of export/import cargo;
- (viii) SEZ Developers  /Co-Developers  and  Units  enjoy  Direct  Tax  and  Indirect  Tax benefits as prescribed in the SEZs Act, 2005.

(b): 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 420 proposals for setting up of SEZs in the country.  Presently, out of 355  notified  SEZs  a  total  of  230  SEZs  are  operational.    States/Union  Territories-wise distribution of SEZs established in the Country including Gujarat is at Annexure .

(c) and (d): SEZs  being  set  up  under  the  SEZs  Act,  2005  and  SEZs  Rules,  2006  are primarily private investment driven. No funds are sanctioned by the Central Government for setting up of SEZ, however, the fiscal concessions and duty benefits have been allowed to developers/units as per the SEZs Act, 2005 and Rules thereunder.  As on 30.09.2018, exports from  SEZs  was  Rs.  3,33,661  crores  and  employment  generation  was  about  19.96  lakh persons and investment of Rs. 4,92,312 crore has been made.

(e): The Government had constituted a Group of eminent persons under the Chairmanship of  Shri  Baba  Kalyani,  Chairman  M/s.  Bharat  Forge  to  study  the  Special  Economic  Zone (SEZ) Policy of India on 04.06.2018.  One of the terms of the reference for the group was to make the SEZ Policy WTO compatible. The Group submitted its report to the Government on 19.11.2018.  Recommendations of the Group are being examined by way of Inter-Ministerial consultations.

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| States/Union Territories-wise distribution of SEZs established in the Country including Gujarat   | States/Union Territories-wise distribution of SEZs established in the Country including Gujarat   | States/Union Territories-wise distribution of SEZs established in the Country including Gujarat   | States/Union Territories-wise distribution of SEZs established in the Country including Gujarat   | States/Union Territories-wise distribution of SEZs established in the Country including Gujarat   | States/Union Territories-wise distribution of SEZs established in the Country including Gujarat   |
|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
| States/UTs                                                                                        | Central Government SEZs set up prior to the enactment of SEZs Act, 2005                           | State Government/ Private Sector SEZs set up prior to the enactment of SEZs Act, 2005             | Formal Approvals granted under the SEZs Act, 2005                                                 | Notified SEZs under the SEZ Act, 2005                                                             | Total Operational SEZs (Including prior to SEZs Act + under the SEZs Act)                         |
| Andhra Pradesh                                                                                    | 1                                                                                                 | 0                                                                                                 | 32                                                                                                | 27                                                                                                | 19                                                                                                |
| Chandigarh                                                                                        | 0                                                                                                 | 0                                                                                                 | 2                                                                                                 | 2                                                                                                 | 2                                                                                                 |
| Chhattisgarh                                                                                      | 0                                                                                                 | 0                                                                                                 | 2                                                                                                 | 1                                                                                                 | 1                                                                                                 |
| Delhi                                                                                             | 0                                                                                                 | 0                                                                                                 | 2                                                                                                 | 0                                                                                                 | 0                                                                                                 |
| Goa                                                                                               | 0                                                                                                 | 0                                                                                                 | 7                                                                                                 | 3                                                                                                 | 0                                                                                                 |
| Gujarat                                                                                           | 1                                                                                                 | 2                                                                                                 | 28                                                                                                | 24                                                                                                | 20                                                                                                |
| Haryana                                                                                           | 0                                                                                                 | 0                                                                                                 | 24                                                                                                | 21                                                                                                | 6                                                                                                 |
| Jharkhand                                                                                         | 0                                                                                                 | 0                                                                                                 | 1                                                                                                 | 1                                                                                                 | 0                                                                                                 |
| Karnataka                                                                                         | 0                                                                                                 | 0                                                                                                 | 62                                                                                                | 51                                                                                                | 31                                                                                                |
| Kerala                                                                                            | 1                                                                                                 | 0                                                                                                 | 29                                                                                                | 25                                                                                                | 19                                                                                                |
| Madhya Pradesh                                                                                    | 0                                                                                                 | 1                                                                                                 | 10                                                                                                | 5                                                                                                 | 5                                                                                                 |
| Maharashtra                                                                                       | 1                                                                                                 | 0                                                                                                 | 56                                                                                                | 50                                                                                                | 30                                                                                                |
| Manipur                                                                                           | 0                                                                                                 | 0                                                                                                 | 1                                                                                                 | 1                                                                                                 | 0                                                                                                 |
| Nagaland                                                                                          | 0                                                                                                 | 0                                                                                                 | 2                                                                                                 | 2                                                                                                 | 0                                                                                                 |
| Odisha                                                                                            | 0                                                                                                 | 0                                                                                                 | 7                                                                                                 | 5                                                                                                 | 5                                                                                                 |
| Puducherry                                                                                        | 0                                                                                                 | 0                                                                                                 | 1                                                                                                 | 0                                                                                                 | 0                                                                                                 |
| Punjab                                                                                            | 0                                                                                                 | 0                                                                                                 | 5                                                                                                 | 3                                                                                                 | 3                                                                                                 |
| Rajasthan                                                                                         | 0                                                                                                 | 1                                                                                                 | 5                                                                                                 | 4                                                                                                 | 2                                                                                                 |
| Tamil Nadu                                                                                        | 1                                                                                                 | 4                                                                                                 | 50                                                                                                | 47                                                                                                | 39                                                                                                |
| Telangana                                                                                         | 0                                                                                                 | 0                                                                                                 | 63                                                                                                | 57                                                                                                | 29                                                                                                |
| Uttar Pradesh                                                                                     | 1                                                                                                 | 1                                                                                                 | 24                                                                                                | 21                                                                                                | 12                                                                                                |
| West Bengal                                                                                       | 1                                                                                                 | 2                                                                                                 | 7                                                                                                 | 5                                                                                                 | 7                                                                                                 |
| GRAND TOTAL                                                                                       | 7                                                                                                 | 11                                                                                                | 420                                                                                               | 355                                                                                               | 230                                                                                               |