Lok Sabha Question No. 81 (UNSTARRED), answered on 2015-11-30
Subject: Special Economic Zones
Ministry: COMMERCE AND INDUSTRY
Asked by: S.P. MUDDAHANUMEGOWDA, ABHIJIT MUKHERJEE, PARAYAMPARANBIL KUTTAPPAN BIJU, A. ARUNMOZHITHEVAN, INNOCENT, BHAGWANTH KHUBA

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

## LOK SABHA UNSTARRED QUESTION NO. 81

## TO BE ANSWERED ON 30 TH  NOVEMBER, 2015 SPECIAL ECONOMIC ZONES

## 81.  SHRI S.P. MUDDAHANUME GOWDA:

SHRI ABHIJIT MUKHERJEE:

SHRI P.K. BIJU:

SHRI A. ARUNMOZHITHEVAN:

SHRI INNOCENT:

SHRI BHAGWANTH KHUBA:

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

be

- a) the details of functional/nonfunctional Special Economic Zones (SEZs) in the country at  present,  State/UT-wise  and the  target fixed for  employment  generation  in  SEZs along with the achievements thereof;
- b) whether the Government proposes to set up new SEZs in the country and if so, the details and the present status thereof, State/UT-wise including West Bengal;
- c) the details of the proposals received and approved by the Government in this regard including those which have been rejected along with the reasons therefor during the last three years and the current year, State/UT-wise including Karnataka;
- d) whether the functional SEZs  have  not been  able  to  achieve  Net  Foreign  Exchange earnings and if so, the reasons for the decline in the growth of SEZs; and
- e) whether the Government proposes to review the functioning and performance of SEZs in the country and if so, the details thereof along with the steps taken/being taken by the Government to improve the functioning of SEZs?

## ANSWER

वाणिज् य एवं उद्योग राज् य मंत्री )णीमीी स मलमा नीीारमि((स्वींत्र प्रभार ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a): In  addition  to  Seven  Central  Government  Special  Economic  Zones  (SEZs) and  11  State/Private  Sector  SEZs  set-up  prior  to  the  enactment  of  the  SEZ  Act, 2005, approval has been accorded to 411 proposals for setting up of SEZs, out of which 327 SEZs have been notified as on date.  Presently, a total of 204 SEZs are exporting. A statement showing State/UT-wise details of operational/non-operational

SEZs is at Annexure-I. Further, no employment generation target is fixed for SEZs. As on 30.06.2015, a total of 15,04,597 persons have been provided employment in SEZs.

(b) and (c): Proposals  for  setting  up  of  Special  Economic  Zones  (SEZs)  are approved by the Board of Approval (BoA) on recommendations of the relevant State Government. Approval of SEZs is an on-going process as they are created under the provisions of the SEZs Act, 2005.   Currently, there is no new proposal for setting up of SEZ in the State of West Bengal.  During the last three years and current year, BoA has approved 19 proposals including 2 proposals in the State of Karnataka for setting  up  of  SEZs.    State/UT-wise  list  of  SEZs  approved  by  Board  of  Approval during the last three years and the current year is at Annexure-II .  No proposal has been rejected during this period.

(d): As per the provisions of the SEZs Act, 2005 and Rules framed thereunder, a SEZ  Developer  is  not required to achieve Net Foreign  Exchange  earnings. However,  the  SEZ  units  are  under  an  obligation  to  achieve  positive  Net  Foreign Exchange (NFE) earnings to be calculated cumulatively for a period of 5 years from the  commencement  of  production,  failing  which  the  units  shall  be  liable  for  penal action under the provisions of the Foreign Trade (Development and Regulation) Act, 1992.

(e): Review  of  functioning  of  SEZs  is  an  on-going  process  and  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 SEZ Scheme. The Government has notified SEZ Rules (Amendment), 2015 vide G.S.R. 5(E) dated 02.01.2015 allowing dual utilization of facilities in Non-Processing Area (NPA) of SEZs by both SEZ and non-SEZ entities. Besides, timelines for disposal of various approvals of Developers and Units have been introduced in all SEZ Zones.

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## Annexure-I to the Lok Sabha Unstarred Question No. 81 for 30 th  November, 2015

| States/UTs     |   Operational SEZs |   Non-operational SEZs |
|----------------|--------------------|------------------------|
| Andhra Pradesh |                 19 |                     12 |
| Chandigarh     |                  2 |                      0 |
| Chhattisgarh   |                  1 |                      1 |
| Delhi          |                  0 |                      2 |
| Goa            |                  0 |                      7 |
| Gujarat        |                 18 |                     16 |
| Haryana        |                  7 |                     15 |
| Jharkhand      |                  0 |                      1 |
| Karnataka      |                 26 |                     33 |
| Kerala         |                 16 |                     14 |
| Madhya Pradesh |                  2 |                     11 |
| Maharashtra    |                 25 |                     35 |
| Manipur        |                  0 |                      1 |
| Nagaland       |                  0 |                      2 |
| Odisha         |                  2 |                      6 |
| Puducherry     |                  0 |                      1 |
| Punjab         |                  2 |                      2 |
| Rajasthan      |                  4 |                      6 |
| Tamil Nadu     |                 36 |                     17 |
| Telangana      |                 26 |                     22 |
| Uttar Pradesh  |                 11 |                     13 |
| West Bengal    |                  7 |                      8 |
| GRAND TOTAL    |                204 |                    225 |

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## Annexure-II to the Lok Sabha Unstarred Question No. 81 for 30 th  November, 2015

| List of State wise SEZs approved by Board of Approval during the last three years and current year (upto 30.11.2015)   | List of State wise SEZs approved by Board of Approval during the last three years and current year (upto 30.11.2015)   |
|------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|
| States                                                                                                                 | Number of Approvals granted                                                                                            |
| Andhra Pradesh                                                                                                         | 1                                                                                                                      |
| Gujarat                                                                                                                | 2                                                                                                                      |
| Karnataka                                                                                                              | 2                                                                                                                      |
| Kerala                                                                                                                 | 1                                                                                                                      |
| Maharashtra                                                                                                            | 4                                                                                                                      |
| Manipur                                                                                                                | 1                                                                                                                      |
| Madhya Pradesh                                                                                                         | 1                                                                                                                      |
| Uttar Pradesh                                                                                                          | 2                                                                                                                      |
| Tamil Nadu                                                                                                             | 3                                                                                                                      |
| Telangana                                                                                                              | 2                                                                                                                      |
| Total                                                                                                                  | 19                                                                                                                     |

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