Lok Sabha Question No. 3521 (UNSTARRED), answered on 2023-03-22
Subject: Budget Allocation to SEZs
Ministry: COMMERCE AND INDUSTRY
Asked by: Raja Amareshwara Naik, Sukanta Majumdar, Bhola Singh, Vinod Kumar Sonkar, Rajveer (Raju Bhaiya) Singh

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 3521 TO BE ANSWERED ON 22 nd  MARCH,2023

## BUDGET ALLOCATION TO SEZs

## 3521. SHRI RAJA AMARESHWARA NAIK:

DR. SUKANTA MAJUMDAR:

SHRI BHOLA SINGH:

SHRI VINOD KUMAR SONKAR:

SHRI RAJVEER SINGH (RAJU BHAIYA):

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

- (a) whether the Government has increased the significant budget allocation in Budget 2023-24 for SEZs in the country including the NOIDA/Moradabad SEZ;
- (b) if so, the details thereof including the achievements made so far by the SEZs;
- (c) the total number of Special Economic Zones (SEZs) existing and proposed in the country, State-wise;
- (d) the amount of land lying unutilised in the SEZs in the country, State-wise;
- (e) whether any steps have been taken by the Government to further incentivise Urban Authorities to set up business in SEZs and if so, the details thereof;
- (f) whether the Government conducts periodic review of policies with regard to SEZs; and
- (g) if so, the details thereof and the irregularities found therein and the corrective steps taken by the Government in this regard?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jherh vuqfiz;k iVsy½

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

(a) & (b): The budget allocation for administration of Special Economic Zones (SEZs) Zones including Noida and Moradabad during the Financial Year 2022-23 and 2023-24 is at Annexure-I. SEZ Act was enacted in 2005. Achievement made by SEZs is as under:

| Financial Years        | 2005-06   | 2021-22   |
|------------------------|-----------|-----------|
| Exports (Rs. Crore)    | 22,840    | 9,90,747  |
| Employment (person)    | 1,34,704  | 26,96,180 |
| Investment (Rs. Crore) | 4,035.51  | 6,49,705  |

- (c): As on date, 376 SEZs are notified and 272 SEZs are operational in the country. States/Union Territories-wise details of SEZs in the country is at Annexure-II. SEZs being set up under the

SEZs Act, 2005 and SEZs Rules, 2006 are primarily private investment driven initiatives. Post enactment of the SEZ Act, 2005 the Central Government has not set up or proposed any SEZ in the country.

(d): In respect of 376 notified SEZs (including 7 Central Government SEZs and 12 State/Private Sector SEZs), 19105.58 hectares of land is unutilized as on 31.01.2023.  The details of the unutilized land area States/Union Territories-wise is at Annexure-III .

- (e): No Sir.

(f) & (g): Review of SEZ policy is an on-going process and on the basis of inputs/suggestions received  from  various  stakeholders  on  the  policy  and  operational  framework  of  the  SEZs, Government periodically takes necessary measures for facilitating smooth and effective implementation of the SEZ Act/Rules. The major amendment carried out in SEZ Policy is as under:

- (i) The definition of persons in Section 2(v) has been amended through the Special Economic Zones (Amendment) Bill, 2019, enabling Trusts and any other entity notified by the Central Government to set up units in SEZ.
- (ii) Minimum  Land  Area  requirement  for  setting  up  of  new  SEZs  has  been  reduced  to  50 hectares for Multi sector SEZs.
- (iii) All existing notified Special Economic Zones are considered as a multi-sector SEZs.
- (iv) Sectoral broad-banding has been introduced to encompass similar / related areas under the same Sector.
- (v) Dual use of facilities like social & commercial infrastructure by SEZs and non-SEZ entities has been allowed with suitable conditions in order to make SEZ operations more viable.
- (vi) A new rule 21A 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
- (vii) A  rule  amendment  has  been  carried  out  in  Rule  41  and  42  of  SEZ  Rules,  2006  vide notification  no.  G.S.R  288(E)  dated  8th  April,  2022  to  include  precious  metals  while carrying out job-work from SEZs.
- (viii) SEZ Rules 43A amended vide notification dated 08.12.2022 to allow employees to work from home.
- (ix) A new rule 21B was inserted in SEZ Rules, 2006 vide notification dated 23.02.2023 to allow an aircraft leasing unit in an International Financial Services Centre (IFSC), to utilise office space or manpower or both, of another unit set up in IFSC authorised to undertake aircraft leasing activity.

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| SEZ-wise Budget Allocation (Rs. in lakhs)   | SEZ-wise Budget Allocation (Rs. in lakhs)   | SEZ-wise Budget Allocation (Rs. in lakhs)   | SEZ-wise Budget Allocation (Rs. in lakhs)   | SEZ-wise Budget Allocation (Rs. in lakhs)   | SEZ-wise Budget Allocation (Rs. in lakhs)   |
|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|
| Sl. No.                                     | SEZ                                         | FY 2020-21                                  | FY 2021-22                                  | Revised Estimates 2022-23                   | Budget Estimates 2023-24                    |
| 1.                                          | KASEZ                                       | 1538.35                                     | 1518.10                                     | 1834.00                                     | 1940.00                                     |
| 2.                                          | SEEPZ SEZ                                   | 1038.43                                     | 1195.31                                     | 1400.00                                     | 1426.30                                     |
| 3.                                          | FSEZ                                        | 512.82                                      | 535.55                                      | 629.00                                      | 660.70                                      |
| 4.                                          | MEPZ                                        | 1404.42                                     | 1428.68                                     | 1680.00                                     | 1825.00                                     |
| 5.                                          | CSEZ                                        | 1196.07                                     | 1198.72                                     | 1470.00                                     | 1412.00                                     |
| 6.                                          | NSEZ                                        | 1078.04                                     | 1115.08                                     | 1305.00                                     | 1370.00                                     |
| 7.                                          | VSEZ                                        | 1203.07                                     | 1165.15                                     | 1401.00                                     | 1422.00                                     |
| 8.                                          | ISEZ                                        | 257.84                                      | 270.66                                      | 257.00                                      | 290.00                                      |
| 9.                                          | Jaipur SEZ                                  | 113.16                                      | 107.84                                      | 145.00                                      | 145.00                                      |
| 10.                                         | Manikanchan SEZ                             | 107.14                                      | 95.59                                       | 120.00                                      | 120.00                                      |
| 11.                                         | Moradabad SEZ                               | 78.00                                       | 71.46                                       | 86.00                                       | 106.00                                      |
| 12.                                         | Maha Mumbai SEZ                             | 17.33                                       | 37.98                                       | 46.00                                       | 55.00                                       |
| 13.                                         | Surat SEZ                                   | 146.12                                      | 154.74                                      | 207.00                                      | 254.00                                      |
| Total                                       |                                             | 8690.79                                     | 8894.86                                     | 10580.00                                    | 11026.00                                    |

## Annexure-II to the Lok Sabha Unstarred Question No. 3521 for 22 nd  March, 2023

| States/Union Territories-wise details of SEZs in the country (As on 16.03.2023)   | States/Union Territories-wise details of SEZs in the country (As on 16.03.2023)   | States/Union Territories-wise details of SEZs in the country (As on 16.03.2023)   |
|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| States/UTs                                                                        | Notified SEZs (Including prior to SEZs Act + under the SEZs Act, 2005)            | Operational SEZs (Including prior to SEZs Act + under the SEZs Act, 2005)         |
|                                                                                   | (1+2+5)                                                                           | -6-                                                                               |
| Andhra Pradesh                                                                    | 30                                                                                | 25                                                                                |
| Arunachal Pradesh                                                                 | 0                                                                                 | 0                                                                                 |
| Chandigarh                                                                        | 2                                                                                 | 2                                                                                 |
| Chhattisgarh                                                                      | 1                                                                                 | 1                                                                                 |
| Delhi                                                                             | 0                                                                                 | 0                                                                                 |
| Goa                                                                               | 3                                                                                 | 0                                                                                 |
| Gujarat                                                                           | 25                                                                                | 21                                                                                |
| Haryana                                                                           | 22                                                                                | 8                                                                                 |
| Jharkhand                                                                         | 2                                                                                 | 0                                                                                 |
| Karnataka                                                                         | 52                                                                                | 34                                                                                |
| Kerala                                                                            | 23                                                                                | 20                                                                                |
| Madhya Pradesh                                                                    | 8                                                                                 | 6                                                                                 |
| Maharashtra                                                                       | 44                                                                                | 37                                                                                |
| Manipur                                                                           | 1                                                                                 | 0                                                                                 |
| Nagaland                                                                          | 2                                                                                 | 0                                                                                 |
| Odisha                                                                            | 5                                                                                 | 5                                                                                 |
| Puducherry                                                                        | 0                                                                                 | 0                                                                                 |
| Punjab                                                                            | 3                                                                                 | 3                                                                                 |
| Rajasthan                                                                         | 6                                                                                 | 3                                                                                 |
| Sikkim                                                                            | 0                                                                                 | 0                                                                                 |
| Tamil Nadu                                                                        | 58                                                                                | 50                                                                                |
| Telangana                                                                         | 57                                                                                | 36                                                                                |
| Tripura                                                                           | 1                                                                                 | 0                                                                                 |
| Uttar Pradesh                                                                     | 23                                                                                | 14                                                                                |
| West Bengal                                                                       | 8                                                                                 | 7                                                                                 |
| GRAND TOTAL                                                                       | 376                                                                               | 272                                                                               |

| State/UT-wise Notified Land Area Details (As on 31.01.2023)   | State/UT-wise Notified Land Area Details (As on 31.01.2023)   | State/UT-wise Notified Land Area Details (As on 31.01.2023)   |
|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|
| States/UTs                                                    | Total Notified Area                                           | Land Area In (Hectares) Total Unutilized Area                 |
| Andhra Pradesh                                                | 7344.93                                                       | 3784.59                                                       |
| Chandigarh                                                    | 39.18                                                         | 25.02                                                         |
| Chhattisgarh                                                  | 101.28                                                        | 79.24                                                         |
| Goa                                                           | 249.48                                                        | 249.48                                                        |
| Gujarat                                                       | 14001.60                                                      | 5851.74                                                       |
| Haryana                                                       | 340.37                                                        | 256.03                                                        |
| Jharkhand                                                     | 259.09                                                        | 36.42                                                         |
| Karnataka                                                     | 1983.61                                                       | 730.99                                                        |
| Kerala                                                        | 871.40                                                        | 247.00                                                        |
| Madhya Pradesh                                                | 698.43                                                        | 300.98                                                        |
| Maharashtra                                                   | 4268.07                                                       | 2058.20                                                       |
| Manipur                                                       | 10.85                                                         | 10.85                                                         |
| Nagaland                                                      | 340.70                                                        | 340.70                                                        |
| Odisha                                                        | 1001.33                                                       | 584.19                                                        |
| Punjab                                                        | 57.71                                                         | 44.31                                                         |
| Rajasthan                                                     | 807.08                                                        | 358.63                                                        |
| Tamil Nadu                                                    | 4468.97                                                       | 2367.56                                                       |
| Telangana                                                     | 1949.63                                                       | 1277.00                                                       |
| Tripura                                                       | 16.35                                                         | 16.35                                                         |
| Uttar Pradesh                                                 | 715.01                                                        | 445.70                                                        |
| West Bengal                                                   | 237.07                                                        | 40.60                                                         |
| GRAND TOTAL                                                   | 39762.12                                                      | 19105.58                                                      |

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