Lok Sabha Question No. 73 (UNSTARRED), answered on 2019-02-04
Subject: Issues Faced by SEZ Developers
Ministry: COMMERCE AND INDUSTRY
Asked by: PRITAM GOPINATH MUNDE, Shrirang Appa Barne, SHRIKANT EKNATH SHINDE, ANANDRAO  ADSUL, SHIVAJI ADHALRAO PATIL

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

## LOK SABHA UNSTARRED QUESTION NO. 73 TO BE ANSWERED ON  04 th  FEBRUARY, 2019

## ISSUES FACED BY SEZ DEVELOPERS

## 73. DR. PRITAM GOPINATH MUNDE:

SHRI SHRIRANG APPA BARNE:

DR. SHRIKANT EKNATH SHINDE:

SHRI ANANDRAO ADSUL:

SHRI ADHALRAO PATIL SHIVAJIRAO:

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

- (a) whether the Special Economic Zone Developers are facing certain issues/ problems including some complaints about the misuse of the policy which create hindrance for development of SEZs and if so, the details thereof;
- (b) whether the industry has time and again requested the Finance Ministry to consider restoring  tax  benefits  to  these  zones  for  supporting  growth  of  the  sector  and generating jobs and if so, the response of the Government in this regard;
- (c) whether the SEZs which emerged as major export hubs in the country, started losing sheen  after  the  imposition  of  minimum  alternate  tax  and  introduction  of  sunset clause and if so, the response of the Government in this regard;
- (d) whether the Government has approved 423 SEZs till December, 2017 and if so, the number  of  SEZs  out  of  that  made  operational  so  far  along  with  the  quantum  of exports from these zones grew during April-September 2017-18; and
- (e) the steps taken by the Government to resolve the issues being faced by the SEZs promoters?

## ANSWER

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

- (a) and (e): The Government, on the basis of inputs/suggestions received from stakeholders  on  the  policy  and  operational  framework  of  the  SEZ  Scheme,  periodically reviews the policy and operational framework of SEZs and takes necessary measures so as to facilitate speedy and effective implementation of SEZs.  In this regard, the Government had constituted a Group of eminent persons under the Chairmanship of Shri Baba Kalyani, Chairman M/s. Bharat Forge to study the SEZ Policy of India.  The Group has given its report on 19.11.2018.
- (b): Yes  Madam,  Ministry  of  Commerce  and  Industry  had  also  recommended  the restoration  of  original  exemption  from  MAT  and  withdrawal  of  Sunset  Clause  for  SEZ Developers and Units to Ministry of Finance but has not been agreed to.
- (c): The SEZs Act, 2005 was enacted on 23 rd June, 2005.  In the initial 5 years (i.e. 20072008  to  2011-2012)  there  was  186%  increase  in  the  new  units  in  SEZs.    However,  post imposition of MAT there has been  140% increase in the new units in the next 6 years and current year [i.e. 2012-2013 to 2018-2019(up to 30.09.2018)] in SEZs.
- (d): 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 421 proposals for setting up of SEZs in the country.  Presently, out of 355 notified SEZs a total of 231 SEZs are operational.

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