Lok Sabha Question No. 2619 (UNSTARRED), answered on 2021-03-10
Subject: SEZs
Ministry: COMMERCE AND INDUSTRY
Asked by: Arun Sao

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2619(H) TO BE ANSWERED ON 10 th MARCH, 2021

## SEZs

## 2619 (H). SHRI ARUN SAO :

Will the Minister of COMMERCE & INDUSTRY ( वािण�य एवं उ�ोग मं�ी ) be pleased to state:

- (a) the  salient  features  and  objectives  of  Special  Economic  Zones  (SEZs)  set  up  in  the country;
- (b) the details and number of such Special Economic Zones;
- (c) whether the country is being benefitted in the agriculture and food processing sectors through the setting up of Special Economic Zones; and
- (d) if so, the details thereof?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI HARDEEP SINGH PURI)

- (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 23 rd of June, 2005.  The SEZ Rules, 2006 came into effect on 10 th 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) SEZ units will have freedom for subcontracting;
- (vii) No routine examination by customs authorities of export/import cargo;
- (viii) SEZ Developers /Co-Developers and Units  enjoy tax  benefits  as  prescribed  in  the SEZs Act, 2005.

The  notification  of  Special  Economic  Zones  (SEZs)  in  the  country  is  guided  by  the following:-

- i. generation of additional economic activity
- ii. promotion of exports of goods and services;
- iii. promotion of investment from domestic and foreign sources;
- iv. creation of employment opportunities;
- v. development of infrastructure facilities
6. (b): There were 7 Central Government Special Economic Zones (SEZs) and 12 State/Private Sector SEZs prior to the enactment of the SEZs Act, 2005.  In addition, 425 proposals for setting up of SEZs in the country have been accorded formal approval under the SEZ Act, 2005.  Presently, 378 SEZs are notified, out of which 265 are operational.  States/Union Territories -wise details of SEZs is at Annexure-I.
7. (c) and (d): Yes Sir, 8 Special Economic Zones (SEZs) have been approved for the Agro and Food Processing sector in India.  Of these 8 SEZs, 7 have been notified and 4 are operational. A statement showing details of Agro and Food Processing SEZs in India is at Annexure-II .    The exports  from  these  SEZs  during  the  last  five  years  and  current  year  2020-21  (i.e.  up  to  31 st December, 2020) is as under:

| Years                      |   Exports (Value in Rs. Crores) |
|----------------------------|---------------------------------|
| 2015-16                    |                            2365 |
| 2016-17                    |                            4061 |
| 2017-18                    |                            4117 |
| 2018-19                    |                            4405 |
| 2019-20                    |                            5219 |
| 2020-21 (up to 31.12.2020) |                            5456 |

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| States/Union Territories-wise distribution of approved SEZs   | States/Union Territories-wise distribution of approved SEZs             | States/Union Territories-wise distribution of approved SEZs                           | States/Union Territories-wise distribution of approved SEZs   | States/Union Territories-wise distribution of approved SEZs   | States/Union Territories-wise distribution of approved SEZs                     |
|---------------------------------------------------------------|-------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------------------------|
| 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, 2005) |
| Andhra Pradesh                                                | 1                                                                       | 0                                                                                     | 32                                                            | 27                                                            | 24                                                                              |
| 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                                                                                     | 26                                                            | 22                                                            | 21                                                                              |
| Haryana                                                       | 0                                                                       | 0                                                                                     | 25                                                            | 22                                                            | 7                                                                               |
| Jharkhand                                                     | 0                                                                       | 0                                                                                     | 2                                                             | 2                                                             | 0                                                                               |
| Karnataka                                                     | 0                                                                       | 0                                                                                     | 63                                                            | 52                                                            | 34                                                                              |
| Kerala                                                        | 1                                                                       | 0                                                                                     | 29                                                            | 25                                                            | 20                                                                              |
| Madhya Pradesh                                                | 0                                                                       | 1                                                                                     | 12                                                            | 7                                                             | 5                                                                               |
| Maharashtra                                                   | 1                                                                       | 0                                                                                     | 51                                                            | 45                                                            | 37                                                                              |
| 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                                                                       | 2                                                                                     | 5                                                             | 4                                                             | 3                                                                               |
| Sikkim                                                        | 0                                                                       | 0                                                                                     | 0                                                             | 0                                                             | 0                                                                               |
| Tamil Nadu                                                    | 1                                                                       | 4                                                                                     | 56                                                            | 53                                                            | 48                                                                              |
| Telangana                                                     | 0                                                                       | 0                                                                                     | 63                                                            | 56                                                            | 34                                                                              |
| Tripura                                                       | 0                                                                       | 0                                                                                     | 1                                                             | 1                                                             | 0                                                                               |
| Uttar Pradesh                                                 | 1                                                                       | 1                                                                                     | 24                                                            | 21                                                            | 14                                                                              |
| West Bengal                                                   | 1                                                                       | 2                                                                                     | 7                                                             | 5                                                             | 7                                                                               |
| GRAND TOTAL                                                   | 7                                                                       | 12                                                                                    | 425                                                           | 359                                                           | 265                                                                             |

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| List of Agro and Food Processing SEZs in India   | List of Agro and Food Processing SEZs in India                    | List of Agro and Food Processing SEZs in India           | List of Agro and Food Processing SEZs in India   |
|--------------------------------------------------|-------------------------------------------------------------------|----------------------------------------------------------|--------------------------------------------------|
| Sl. No.                                          | Name of the developer                                             | Location                                                 | SEZ status                                       |
| 1                                                | Kerala Industrial Infrastructure Development Corporation (KINFRA) | Malappuram District, Kerala                              | Notified and Operational                         |
| 2                                                | Parry Infrastructure Company Private Limited                      | Kakinada, Andhra Pradesh                                 | Notified and Operational                         |
| 3                                                | CCCL Pearl City Food Port SEZ Ltd.                                | Tuticorin District, Tamil Nadu                           | Notified and Operational                         |
| 4                                                | CCL Products (India) Limited                                      | Chittoor District, Andhra Pradesh                        | Notified and Operational                         |
| 5                                                | Nagaland Industrial Development Corporation Limited               | Dimapur, Nagaland                                        | Notified                                         |
| 6                                                | Ansal Colours Engineering SEZ Limited                             | Sonepat, Haryana                                         | Notified                                         |
| 7                                                | Tripura Industrial Development Corporation Limited                | Paschim Jalefa, Sabroom, South Tripura District, Tripura | Notified                                         |
| 8                                                | Akshaypatra Infrastructure Pvt. Ltd.                              | Mehsana, Gujarat                                         | Formal Approval                                  |

*****