Lok Sabha Question No. 2115 (UNSTARRED), answered on 2018-12-24
Subject: Investment in SEZs
Ministry: COMMERCE AND INDUSTRY
Asked by: KIRIT PREMJIBHAI SOLANKI

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

## LOK SABHA UNSTARRED QUESTION NO. 2115 TO BE ANSWERED ON 24 th  DECEMBER,2018

## INVESTMENT IN SEZs

## 2115. DR. KIRIT P. SOLANKI:

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

- (a) Whether the imposition of  Minimum  Alternate Tax (MAT) on Special Economic Zone  (SEZ)  units and  developers  has contributed towards the reduction of investments in SEZs and if so, the details thereof;
- (b) Whether the Government has taken steps to enhance investment in SEZs and if so, the details thereof;
- (c) Whether the Government plans to launch an online platform for SEZs to facilitate ease of doing business for developers and units and if so, the details thereof;
- (d) the details of alternative measures undertaken by the Government  for the development of SEZs; and
- (e) Whether SEZs have contributed towards infrastructure and economic development of their respective regions in the past two years and if yes, the details thereof?

## ANSWER

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

- (a): The Government has withdrawn exemption from Minimum Alternate Tax (MAT) on Special Economic Zones (SEZs) with effect from 1 st April, 2012.  The details of investment in SEZs post introduction of MAT is as below:
- (b) and (d): The following initiatives have been taken in recent years for promotion of investment in SEZs:
- i. The  Government  periodically  reviews  the  policy  and  operational  framework  of SEZs  and  takes  necessary  measures  so  as  to  facilitate  speedy  and  effective implementation of SEZs.
- ii. Minimum Land Area requirement for setting up of new SEZs has been reduced to 50% for Multi-product and Sector-specific SEZs.
- iii. Sectoral broad-banding has been introduced to encompass similar / related areas under the same Sector.
- iv. Dual use of facilities like Social & Commercial infrastructure by SEZs and nonSEZs entities has been allowed   in order to make SEZ operations more viable.
- v. State  Governments  have  been  advised  to  make  their  own  Single  Window Clearance mechanism more effective.
- vi. Review  meetings  with  the  Development  Commissioners  of  SEZs  are  held regularly.
- (c): In order to facilitate paperless transaction for movement of goods for imports and exports from SEZs, a web-based platform - SEZ Online system has already been implemented.  Further, a Mobile app named 'SEZ India' having four sections SEZ Information, SEZ Online Transaction, Trade Information and Contact details was launched on 06.01.2017 to facilitate SEZ units/developers.
- (e): Investment made, employment generated and exports from SEZs are the quantifiable criteria for assessing development of infrastructure and economic development. Details of investment, employment generated and exports from SEZs during the past two years and current financial year are shown below:

| Sl. No.                          | Financial Years                  | Investment * (Rs. Crore)         | Increase in Investment (Rs. Crore)   |
|----------------------------------|----------------------------------|----------------------------------|--------------------------------------|
| 1                                | 2012-2013                        | 2,36,717                         | -                                    |
| 2                                | 2013-2014                        | 2,96,663                         | 59,946                               |
| 3                                | 2014-2015                        | 3,38,794                         | 42,131                               |
| 4                                | 2015-2016                        | 3,76,494                         | 37,700                               |
| 5                                | 2016-2017                        | 4,23,189                         | 46,695                               |
| 6                                | 2017-2018                        | 4,74,917                         | 51,728                               |
| 7                                | 2018-2019 ( upto 30.09.2018)     | 4,92,312                         | 17,395                               |
| *Calculated on cumulative basis. | *Calculated on cumulative basis. | *Calculated on cumulative basis. | *Calculated on cumulative basis.     |

| Financial Years                      | Investment* (Rs. in crore)   | Employment* (Persons)   | Exports (Rs. in crore)   |
|--------------------------------------|------------------------------|-------------------------|--------------------------|
| 2016-2017                            | 4,23,189                     | 17,31,641               | 5,23,637                 |
| 2017-2018                            | 4,74,917                     | 19,77,216               | 5,81,033                 |
| 2018-2019 (April to September, 2018) | 4,92,312                     | 19,96,610               | 3,33,661                 |

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