Lok Sabha Question No. 492 (STARRED), answered on 2022-04-06
Subject: India Trade Promotion Organisation
Ministry: COMMERCE AND INDUSTRY
Asked by: Saikia Dilip, Ramesh Chander Kaushik

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

## LOK  SABHA STARRED QUESTION NO. 492 (H)

## TO BE ANSWERED ON 06 th  APRIL, 2022

## INDIA TRADE PROMOTION ORGANISATION

## *492(H).  SHRI DILIP SAIKIA:

SHRI RAMESH CHANDER KAUSHIK:

Will  the  Minister  of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मं त्री ) be pleased to state:

- (a) the  details  of  the  steps  taken  by  the  India  Trade  Promotion  Organisation  (ITPO)  to  promote domestic business and International Trade Fairs;
- (b) the extent to which physical infrastructure and management of services is being developed in business activities in all the States of the Country including North-Eastern States;
- (c) the action plan of the units of the economic zone for the development of Special Economic Zones (SEZs) for creation of economic activities, promotion of exports and services and promotion of investment from domestic sources as well as to increase employment opportunities; and
- (d) the number of SEZs which are ready and in operation currently in all the States of the country, particularly North-Eastern States including Assam?

## ANSWER

okf.kT; ,oa m|ksx ea=h ( Jh ih;w'k xks;y )

THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

(a) to (d):  A Statement is laid on the Table of the House. *****

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a) to (d)  OF  LOK  SABHA STARRED    QUESTION    NO.  492  (H)      FOR    ANSWER        ON  06 th   APRIL,  2022 REGARDING   'INDIA TRADE PROMOTION ORGANISATION   '.

- (a) : India Trade Promotion Organisation (ITPO) organizes participation of Indian companies in overseas exhibitions to explore the potential of their products in overseas markets and also organizes domestic trade fairs,  both Business to Business (B2B) and Business to Consumer (B2C), to provide a  common platform to Indian companies all over the country for brand launch, promotion, positioning and new business tie-ups as well  as  retail  sales.  ITPO  undertakes  comprehensive  publicity  of  International  and  domestic  trade  fairs through print, electronic and social media. ITPO also provides bare space (halls etc) and services at Pragati Maidan to organizers pertaining to various industries/sectors, which helps  various exhibiting companies to showcase  their  products/services  to  their  potential  buyers  who  visit  these  exhibitions,  including  foreign participants. This helps  Indian companies to build their business network and secure order from their buyers both domestic and international.

ITPO  has  also  built  a  new  exhibition  complex  (Halls  2-5)  with  state  of  the  art  50,000  sq.  metres  of airconditioned exhibition space as a part of the ongoing International Exhibition- cum- Convention Centre (IECC) project. These halls were launched on October 13, 2021.

- (b) : Government of India is implementing a scheme namely 'Trade Infrastructure for Export Scheme (TIES) w.e.f. FY 2017-18 with the objective of enhancing export competitiveness by supporting development of export linked infrastructure in all the States of the Country including North-Eastern States, like  Border Haats, Land customs stations, quality testing and certification labs, cold chains, trade promotion centres , dry ports, export warehousing and packaging, SEZs, ports/airports cargo terminuses, and first mile and last mile connectivity for export-oriented projects, that can be utilized by multiple exporters.

Currently,  the North Eastern Council Secretariat (NEC) implements three schemes viz., 'Schemes of NEC', 'North  East  Road  Sector  Development  Schemes  (NERSDS)',  'Non-Lapsable  Pool  of  ResourcesCentral(NLCPR-C)'. From FY 2022-23, another scheme called 'Prime Minister's Development Initiative for North-East (PM-DevINE)' will be implemented by NEC. Under these schemes, projects for overall socioeconomic development including physical infrastructure of NER are supported as critical gap-funding but not exclusively for business.  Further there are currently 7 projects costing Rs.18.25 Crore for development of business/entrepreneurship activities under Schemes of NEC. List is enclosed at Annexure -I.

- (c): Special  Economic  Zones  (SEZs)  are  primarily  private  investment  driven  initiatives.  The Government  from  time  to  time  takes  necessary  measures  for  facilitating  smooth  and  effective implementation  of  the  SEZ  Act/Rules.  The  Government  has  taken  several  measures  for  SEZ Developers/Units to increase economic activities, promotion of exports and services and promotion of investment from domestic sources as well as to increase employment opportunities in SEZs, as detailed in Annexure-II .
- (d): There are 375 notified Special Economic Zones (SEZs) in the country including 4 in North-Eastern States, out of which 268 SEZs are operational. There is no operational SEZ in NorthEastern States, and no SEZ in Assam at present.

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## LIST OF ONGOING PROJECTS RELATING TO ENTREPRENUERSHIP/BUSINESS IN NER

| Sl. No.   | State             | Name of Project                                                                                                        | Sector     | Scheme         | Date of Sanction   |   Approved Cost (Rs.in Crore) |
|-----------|-------------------|------------------------------------------------------------------------------------------------------------------------|------------|----------------|--------------------|-------------------------------|
| 1         | 2                 | 3                                                                                                                      | 4          | 5              | 6                  |                          7    |
| 1         | Arunachal Pradesh | Establishment of Entreprenuership Development Institute at Jote under Papum Pare District, Arunachal Pradesh           | Industries | Schemes of NEC | 26-11-2012         |                          2.3  |
| 2         | Meghalaya         | Setting up of Rural Entrepreneurship Centre East Garo Hills District, Meghalaya                                        | Industries | Schemes of NEC | 29-06-2017         |                          3.01 |
| 3         | Meghalaya         | Setting up of Rural Entrepreneurship Centre North Garo Hills District, Meghalaya                                       | Industries | Schemes of NEC | 29-06-2017         |                          3.02 |
| 4         | Meghalaya         | Setting up of Rural Entrepreneurship Centre South Garo Hills District, Meghalaya                                       | Industries | Schemes of NEC | 29-06-2017         |                          3    |
| 5         | Meghalaya         | Setting up of Rural Entrepreneurship Centre at Sohparu, West Khasi Hills District, Meghalaya                           | Industries | Schemes of NEC | 29-06-2017         |                          2.96 |
| 6         | Nagaland          | Skill training on machineries, processing and business management, Nagaland                                            | Industries | Schemes of NEC | 29-09-2020         |                          1.98 |
| 7         | Nagaland          | Train 1100 youths/entrepreneurs in maintenance and repair of tools and machineries covering all 11 districts, Nagaland | Industries | Schemes of NEC | 29-09-2020         |                          1.98 |
| Total     |                   |                                                                                                                        |            |                |                    |                         18.25 |

## Measures for enhancing Ease of Doing Business in SEZs:

1. Method of calculation for Net Foreign Exchange earning criteria has been reviewed and modified vide Notification dated 07th March, 2019.
2. Rule 53A has been inserted to facilitate the calculation of net foreign exchange for a unit in an International Financial Service Centre in view of its special nature.
3. Uniform list of services to SEZ, a broad list of input services that could be utilized by SEZ units for their  day-to-day  operations  thereby  avoiding  the  requirement  of  the  units  to  seek  permission  of Development Commissioners for each such instance.
4. Setting up of cafeteria, gymnasium, creche and other similar facilities / amenities allowed to SEZ units.
5. Delegation  of  powers  to  Development  Commissioner for  shifting  of  SEZ  unit  from  one  SEZ  to another within their jurisdiction.
6. An amendment to the SEZ Rules in March-2019 to allow employees of IT/ITeS SEZ units to work for home.
7. Guidelines for clearance of abandoned goods/ uncleared cargo laying in FTWZs.
8. Formalize 'de-notification' process for enclaves and delink its present mandatory usage for SEZs purpose only.
9. Support to enable servicification of manufacturing zones. Allowing manufacturing enabling services companies e.g. R&D services, engineering design services, logistics service.
10. Developer are allowed flexibility to enter into a long term lease agreement with stakeholders in Zones in line with the State policies.
11. Enabling provisions for transfer of approval from one co-developer to other co-developer.
12. Amendment in SEZ Act, 2005 [Section 2(v)] for enabling Trusts and any other entity notified by the Central Government to set up units in SEZ.
13. Vide amendment dated 23.10.2020, a proviso in Rule 24(3) of the SEZs Rules has been inserted regarding admissibility of Drawback and any other similar benefit on supplies from Domestic Tariff Area to foreign suppliers in Free Trade and Warehousing Zone, where the payments are made in foreign currency by the foreign supplier to Domestic Tariff Area.
14. A new rule 21A has been inserted in SEZ Rules, 2006 which enables setting up of Unit by Multilateral or Unilateral or International agencies notified under United Nation (Privileges and Immunities) Act, 1947 (46 of 1947) in International Financial Services Centre.
15. Power Guidelines, 2016 has been amended vide this Department's OM dated 07.06.2021 allowing a unit to set  up  non-conventional  power  plants  within  their  premises  for  the  exclusive  purpose  of  captive consumption subject to the condition that non tax/duty benefits stipulated under Section 26 of SEZ Act, 2005.
16. Instruction  no.  106  relating  to  the  policy  for  worn/used  clothing  and  plastic  recycling  units  in SEZs/EOUs was issued on 27th May, 2021.
17. Instruction No. 107 dated 26th August, 2021 has been issued to all Development Commissioners for minimizing regulatory compliances for Pharma Industry. Further, integration of FSSAI with SEZ Online System has been made live.
18. Instruction No. 108 dated 11th October, 2021 has been issued pertaining to alternative method of transfer of space by an existing unit under Rule 74 of SEZ Rules, 2006.
19. Instruction No. 109 dated 18th October, 2021 has been issued which provides that reorganization including change of name, change of shareholding pattern, business transfer arrangements, court approved mergers and demergers, change of constitution, change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC) concerned subject to the condition that Developer/Co-developer/Unit shall not opt out or exit out of the Special Economic Zone and continues to operate as a going concern.

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