Lok Sabha Question No. 957 (UNSTARRED), answered on 2018-12-17
Subject: Special Economic Zones
Ministry: COMMERCE AND INDUSTRY
Asked by: KIRIT PREMJIBHAI SOLANKI, DHARAMBIR BHALERAM, Adhikari Dibyendu

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

## LOK SABHA UNSTARRED QUESTION NO. 957 TO BE ANSWERED ON 17 th  DECEMBER,2018

## SPECIAL ECONOMIC ZONES

## 957. DR. KIRIT P. SOLANKI:

SHRI DHARAMBIR:

SHRI DIBYENDU ADHIKARI:

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

- (a) the  details  of  Special  Economic  Zones  (SEZs)  approved  and  established  in  the country,  State  and  UT-wise  along  with  those  which  are  currently  operational  and non-operational;
- (b) whether it is true that a large number of SEZs which have been approved are not operational  and  if  so,  the  reasons  therefor  along  with  the  steps  taken  by  the Government to make these SEZs operational;
- (c) whether the Government has given more time to the developers of SEZs to complete their projects and if so, the details thereof along with the details of penalty imposed on such developers for not completing the project in the prescribed time period;
- (d) whether the Government has received any report to boost up the SEZs into more investment  oriented  as  an  employment  economic  enclaves  thereto  and  if  so,  the details thereof; and
- (e) whether  SEZs  have  facilitated  exports  in  the  manufacturing  sector  and  if  so,  the details thereof along with the impact of SEZs on employment generation?

## ANSWER

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

- (a): 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  and  143  SEZs  are  non-operational. States/Union  Territories-wise  distribution  of  SEZs  approved,  established,  operational  and non-operational in the Country is at Annexure.
- (b): Setting up of SEZs is a long term process and delay in commencement of commercial operations of the SEZs may be due to various reasons which include time taken in getting approvals from statutory/State Government bodies,  adverse business climate due to changed global economic situation, changes in fiscal incentives, etc.  The corrective steps taken by the Government to make these SEZs functional are as under:
- 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 non-SEZs 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 terms of Rule 6(2)(a) of the Special Economic Zones Rules, 2006, the letter of approval granted to a Special Economic Zone (SEZ) developer is valid for a period of three years within which time, effective steps are to be taken by the developer to implement the approved project. The Board of Approval may, on an application by the developer, grant more time by extending the validity period of the letter of approval.  During the last six years and current financial year (upto 11 th December, 2018), extension of time have been granted to 146 developers of SEZs across the country, to complete their projects.
- (d): Madam, 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.  The Group submitted its report to the Government on 19.11.2018.
- (e): The provision of SEZs Act, 2005 are applicable on manufacturing and services sectors.  The details exports in manufacturing sector from SEZs during last three years and current year are as under:

| Year                        | Exports of the SEZs in manufacturing sector (Rs. Crore)   |
|-----------------------------|-----------------------------------------------------------|
| 2015-2016                   | 2,14,501                                                  |
| 2016-2017                   | 2,37,502                                                  |
| 2017-2018                   | 2,67,801                                                  |
| 2018-2019 (Upto 30.09.2018) | 1,60,699                                                  |

The details of employment generation in SEZs during last three years and current year are as under:

| Year                        | Employment in SEZs* (persons)   |
|-----------------------------|---------------------------------|
| 2015-2016                   | 15,91,381                       |
| 2016-2017                   | 17,31,641                       |
| 2017-2018                   | 19,77,216                       |
| 2018-2019 (Upto 30.09.2018) | 19,96,610                       |

* calculated on cumulative basis.

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## Annexure to the Lok Sabha Unstarred Question No. 957 for 17 th December, 2018.

| States/Union Territories-wise distribution of SEZs approved, established, operational and non- operational in the Country   | States/Union Territories-wise distribution of SEZs approved, established, operational and non- operational in the Country   | States/Union Territories-wise distribution of SEZs approved, established, operational and non- operational in the Country   | States/Union Territories-wise distribution of SEZs approved, established, operational and non- operational in the Country   | States/Union Territories-wise distribution of SEZs approved, established, operational and non- operational in the Country   | States/Union Territories-wise distribution of SEZs approved, established, operational and non- operational in the Country   | States/Union Territories-wise distribution of SEZs approved, established, operational and non- operational in the Country   |
|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|
| 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)                                                   | Non- Operational SEZs                                                                                                       |
| Andhra Pradesh                                                                                                              | 1                                                                                                                           | 0                                                                                                                           | 32                                                                                                                          | 27                                                                                                                          | 19                                                                                                                          | 9                                                                                                                           |
| Chandigarh                                                                                                                  | 0                                                                                                                           | 0                                                                                                                           | 2                                                                                                                           | 2                                                                                                                           | 2                                                                                                                           | 0                                                                                                                           |
| Chhattisgarh                                                                                                                | 0                                                                                                                           | 0                                                                                                                           | 2                                                                                                                           | 1                                                                                                                           | 1                                                                                                                           | 0                                                                                                                           |
| Delhi                                                                                                                       | 0                                                                                                                           | 0                                                                                                                           | 2                                                                                                                           | 0                                                                                                                           | 0                                                                                                                           | 0                                                                                                                           |
| Goa                                                                                                                         | 0                                                                                                                           | 0                                                                                                                           | 7                                                                                                                           | 3                                                                                                                           | 0                                                                                                                           | 3                                                                                                                           |
| Gujarat                                                                                                                     | 1                                                                                                                           | 2                                                                                                                           | 28                                                                                                                          | 24                                                                                                                          | 20                                                                                                                          | 7                                                                                                                           |
| Haryana                                                                                                                     | 0                                                                                                                           | 0                                                                                                                           | 24                                                                                                                          | 21                                                                                                                          | 6                                                                                                                           | 15                                                                                                                          |
| Jharkhand                                                                                                                   | 0                                                                                                                           | 0                                                                                                                           | 1                                                                                                                           | 1                                                                                                                           | 0                                                                                                                           | 1                                                                                                                           |
| Karnataka                                                                                                                   | 0                                                                                                                           | 0                                                                                                                           | 62                                                                                                                          | 51                                                                                                                          | 31                                                                                                                          | 20                                                                                                                          |
| Kerala                                                                                                                      | 1                                                                                                                           | 0                                                                                                                           | 29                                                                                                                          | 25                                                                                                                          | 19                                                                                                                          | 7                                                                                                                           |
| Madhya                                                                                                                      | 0                                                                                                                           | 1                                                                                                                           | 10                                                                                                                          | 5                                                                                                                           | 5                                                                                                                           | 1                                                                                                                           |
| Maharashtra                                                                                                                 | 1                                                                                                                           | 0                                                                                                                           | 56                                                                                                                          | 50                                                                                                                          | 30                                                                                                                          | 21                                                                                                                          |
| Manipur                                                                                                                     | 0                                                                                                                           | 0                                                                                                                           | 1                                                                                                                           | 1                                                                                                                           | 0                                                                                                                           | 1                                                                                                                           |
| Nagaland                                                                                                                    | 0                                                                                                                           | 0                                                                                                                           | 2                                                                                                                           | 2                                                                                                                           | 0                                                                                                                           | 2                                                                                                                           |
| Odisha                                                                                                                      | 0                                                                                                                           | 0                                                                                                                           | 7                                                                                                                           | 5                                                                                                                           | 5                                                                                                                           | 0                                                                                                                           |
| Puducherry                                                                                                                  | 0                                                                                                                           | 0                                                                                                                           | 1                                                                                                                           | 0                                                                                                                           | 0                                                                                                                           | 0                                                                                                                           |
| Punjab                                                                                                                      | 0                                                                                                                           | 0                                                                                                                           | 5                                                                                                                           | 3                                                                                                                           | 3                                                                                                                           | 0                                                                                                                           |
| Rajasthan                                                                                                                   | 0                                                                                                                           | 1                                                                                                                           | 5                                                                                                                           | 4                                                                                                                           | 2                                                                                                                           | 3                                                                                                                           |
| Tamil Nadu                                                                                                                  | 1                                                                                                                           | 4                                                                                                                           | 50                                                                                                                          | 47                                                                                                                          | 39                                                                                                                          | 13                                                                                                                          |
| Telangana                                                                                                                   | 0                                                                                                                           | 0                                                                                                                           | 63                                                                                                                          | 57                                                                                                                          | 29                                                                                                                          | 28                                                                                                                          |
| Uttar Pradesh                                                                                                               | 1                                                                                                                           | 1                                                                                                                           | 24                                                                                                                          | 21                                                                                                                          | 12                                                                                                                          | 11                                                                                                                          |
| West Bengal                                                                                                                 | 1                                                                                                                           | 2                                                                                                                           | 7                                                                                                                           | 5                                                                                                                           | 7                                                                                                                           | 1                                                                                                                           |
| GRAND TOTAL                                                                                                                 | 7                                                                                                                           | 11                                                                                                                          | 420                                                                                                                         | 355                                                                                                                         | 230                                                                                                                         | 143                                                                                                                         |

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