Lok Sabha Question No. 2009 (UNSTARRED), answered on 2019-07-03
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. 2009 TO BE ANSWERED ON 3 rd JULY, 2019

## INVESTMENT IN SEZS

## 2009. DR. (PROF.) KIRIT PREMJIBHAI SOLANKI:

Will the Minister of COMMERCE & INDUSTRY ( वा�ण�य एवं उ�योग मं�ी ) be pleased to state:

- (a) whether the imposition of Minimum Alternate Tax (MAT) on Special Economic Zones (SEZs) units and developers have 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 the 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 so, the details thereof?

## ANSWER

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## THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

- (a): The  Government  has  withdrawn  exemption  from  Minimum  Alternate  Tax  (MAT)  on  Special Economic Zones (SEZs) with effect from 1 st April, 2012.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 Multiproduct 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 order to facilitate paperless transaction for movement of goods fo r 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 are shown below:

| Financial Years   | Investment* (Rs. in crore)   | Employment* (Persons)   | Exports (Rs. in crore)   |
|-------------------|------------------------------|-------------------------|--------------------------|
| 2017-2018         | 4,74,917                     | 19,77,216               | 5,81,033                 |
| 2018-2019         | 5,07,644                     | 20,61,055               | 7,01,179                 |

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## Annexure to the Lok Sabha Unstarred Question Nol. 2009 for 3 rd July,20-19

| The details of investment in SEZs post introduction of MAT   | The details of investment in SEZs post introduction of MAT   | The details of investment in SEZs post introduction of MAT   |
|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| Sl.No,.                                                      | Financial Year                                               | Investment* (Rs. Crore)                                      |
| 1.                                                           | 2012-2013                                                    | 2,36,717                                                     |
| 2.                                                           | 2013-2014                                                    | 2,96,663                                                     |
| 3.                                                           | 2014 -2015                                                   | 3,38,794                                                     |
| 4.                                                           | 2015- 2016                                                   | 3,76,494                                                     |
| 5.                                                           | 2016- 2017                                                   | 4,23,189                                                     |
| 6.                                                           | 2017-2018                                                    | 4,74,917                                                     |
| 7.                                                           | 2018 -2019                                                   | 5,07,644                                                     |

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