Upload
gabriella-stanley
View
219
Download
1
Tags:
Embed Size (px)
Citation preview
1
PRESENTATION BY P.C. NAMBIARChairman, Export Promotion Council for Export Oriented Units and SEZs, India
ZONE DEVELOPMENT AND OPERATION
AN INDIAN PERSPECTIVE
INDIA – FEDERAL SET UP 29 STATES AND 7 UNION
TERRITORIES RULED BY 13 DIFFERENT POLITICAL PARTIES.
INDEPENDENT FEDERAL AUTHORITY ON CERTAIN VITAL ISSUES LIKE LAND USE, LABOUR ,LAW & ORDER ETC.
INDEPENDENT STATE TAX LEGISLATIONS.
2
3
INDIA - FEDERAL SET UP SMALLEST STATE SIZE 0.370 Mn Ha
LARGEST STATE SIZE 34.226 Mn Ha
VARYING RATIO OF LITERACY RATES
UNEVEN POPULATION DENSITY
30 LANGUAGES SPOKEN WITH DIFFERENT CULTURE
4
INDIA – DEMOGRAPHY LACK OF ADEQUATE INDUSTRIAL,
COMMERCIAL AND SOCIAL INFRASTRUCTURE
3 TIER GOVERNANCE ACROSS THE COUNTRY
LACK OF ECONOMIC AWARENESS
5
INTRODUCTIONZONE DEVELOPMENT STARTED IN 1965
INITIALLY ONLY GOVERNMENT ZONES
STATE GOVT DEVELOPED 10 ZONES
ONLY ONE PVT ZONE UPTO 2006
SEZ ACT 2005 AND SEZ RULES 2006 ENACTED
6
7
SEZ SIZE- SECTOR FOCUS
FOR IT/ITES SECTOR MINIMUM BUILT-UPAREA SPECIFIED
• Category “A” – 1,00,000 Sq Mtr • Category “B” - 50,000 Sq Mtrs • Category “C”- 25,000 Sq Mtrs.
SEZ SIZE – SECTOR FOCUSMulti Product SEZs - 500 Ha
Multi Services SEZs – 50 Ha
Sector specific SEZs – 50 Ha
Port or Airport based SEZs- 50 Ha (in smaller and specified sector 25 Ha)
BT, Non conventional energy or gems and jewellery , Handicrafts, electronics - 10 Ha
8
FREE TRADE WAREHOUSING ZONE
FTWZ – Only FTWZ-40 Ha with a built up area of
not less than 100,000 sq.mtr)
FTWZ can be set up Sector Specific SEZ- ( Max 20%
of processing area ) in a Multi product SEZ no
limitation prescribed
9
SPECIAL ECONOMIC ZONES IN INDIA.
FORMALLY APPROVED -564GOVERNMENT SPONSORED-18PRIVATE SEZs - 546--------------------------------------------------------------------NOTIFIED SEZs- 388GOVERNMENT SPONSORED-18PRIVATE SEZs-370--------------------------------------------------------------------OPERATIONAL SEZs – 192GOVERNMENT SPONSORED-18 PRIVATE SEZs- 174
10
SEZ LOCATION 9 OUT OF 29 STATES DON’T HAVE
SEZ PRESENCE
3 OUT OF 7 UNION TERRITORIES DO NOT HAVE SEZ PRESENCE
NO UNIFORM FISCAL BENEFITS OFFERED BY STATES
11
SEZ MAP IN TINY STATES BELOW 10 Mn HECTARES SIZE
12
SMALLER SIZE STATES
13
10 TO 20 Mn Ha SIZE STATES
14
BIGGER SIZE STATES
15
16
LOCATION – STATES NOT HAVING SEZsSTATES POPULATIO
NSTATE POPULATIO
N
ARUNACHAL PRADESH
1,382,611 ASSAM 31,169,272
BIHAR 103,804,637 HIMACHAL PRADESH
6,856,509
JAMMU & KASHMIR
12,548,926
MEGHALAYA 2,964,007 MIZORAM 1,091,014
SIKKIM 607,688 TRIPURA 3,671,032
17
SEZ LOCATION - UNION TERRITORIES NOT HAVING SEZs
ANDAMAN & NICOBAR ISLANDS
DAMAN AND DIU
LAKSHADWEEP
INVESTMENT IN SEZsIN THE GOVERNMENT SPONSORED SEZs - US$
4,007 Mn
IN THE PRIVATE SECTOR SEZs - US$ 46,269 Mn
18
FDI in Zone Development
19
Cochin SEZ US$ 4.85 Mn
Falta SEZ US$ 3.44 Mn
Kandla SEZ US $ 11.46 Mn
SEEPZ, Mumbai US $ 54.54 Mn
Noida SEZ US $ 29.16 Mn
Vishakapatnam SEZ US $ 19.41 Mn
Madras EPZ US $ 40 Mn
TOTAL US $ 162.87 Mn
DIRECT EMPLOYMENT IN SEZs
IN THE GOVT. SPONSORED SEZs- 281,823 persons
IN PRIVATE SECTOR SEZs - 995,822 persons.
20
SEZ PERFORMANCE NUMBER OF SEZ OPERATING UNITS - 3,818
EXPORTS AS OF 31.03.2014- US$ 82,346 Mn
DOMESTIC SALE IN INDIA AS OF 31.03.2014 – US$ 11,386 Mn
21
SEZ SECTOR MIX
MULTI PRODUCTS 10%
OTHER SECTOR SPECIFIC MANUFACTURING 32%
IT/ITES , ELECTRONIC HARDWARE, SEMI CONDUCTOR SERVICES 56%
• OTHER SERVICES- 2%
22
Of 192 Operational
State-wise distribution of approved SEZs (As on 01.9.2014)
States/UTs FormalApprovals
In-principle approvals
NotifiedSEZs
^Exporting SEZs (Central Govt. + State Govt./Pvt. SEZs + notified SEZs
under the SEZ Act, 2005)
Andhra Pradesh 44 4 33 18
Chandigarh 2 0 2 2
Chhattisgarh 2 1 1 1
Delhi 3 0 0 0
Dadra & Nagar Haveli 2 0 1 0
Goa 7 0 3 0
Gujarat 42 6 29 18
Haryana 39 3 28 6
Jharkhand 1 0 1 0
Karnataka 61 0 40 25
Kerala 30 0 25 14
Madhya Pradesh 19 1 9 2
Maharashtra 99 11 66 25
Manipur 1 0 1 0
Nagaland 2 0 2 0
Odisha 10 1 5 1
Puducherry 1 1 0 0
Punjab 8 0 2 2
Rajasthan 10 1 10 4
Tamil Nadu 66 5 53 34
Telangana 64 0 45 24
Uttar Pradesh 32 1 22 10
Uttarakhand 2 0 1 0
West Bengal 17 3 9 6
GRAND TOTAL 564 38 388 192
23
Sector-wise Distribution of approved SEZs ( As on 20.08.2014)
Sectors Formal Approvals
In-Principle approvals
Notified SEZs
Exporting SEZs (Central
Govt./Pvt. SEZs + Notified SEZs under the SEZ
Act, 2005)
Agro 6 2 5 0
Airport based multi-product 3 0 0 0
Auto and related 1 1 1 1
Aviation/Aerospace/Animation & Gaming/Copper 7 1 6 5
Beach & Mineral/Metals 3 0 3 0
Bio-tech 30 0 19 2
Building prod./mal./transport equipments /ceramic and glass
2 2 2 2
Electronic product/Industries 3 0 3 1
Engineering 20 1 14 13
Footwear/Leather 5 0 4 3
Food Processing 5 0 4 4
FTWZ 13 6 7 3
Gems and Jewellery 13 3 6 3
Handicrafts & Carpets 5 0 3 2
IT/ITES/Electronic Hardware/Semiconductors/Servces
347 0 239 107
Metal/Stain.Steel/Alum/Foundry 7 1 4 0
Light Engieering/Metallurgical Engineering/Automotive Components
1 0 0 0 24
Sector-wise Distribution of approved SEZs ( As on 20.08.2014)
Sectors Formal Approvals
In-Principle approval
s
Notified SEZs
Exporting SEZs (Central
Govt./Pvt. SEZs + Notified
SEZs under the SEZ Act,
2005)
Multi-product 24 11 16 19
Multi-Services 10 2 7 2
Non-Conventional Energy 6 0 4 2
Plastic processing 0 2 0 0
Petrochemicals & petro./oil and gas 4 1 2 1
Pharmaceuticals/Chemicals 22 2 20 11
Port-based multi-product 6 1 3 2
Power/alternate energy/solar 3 1 3 3
Textiles/Apparel/Wool 14 1 11 6
Writing and printing paper mills 2 0 1 0
Granite processing Industries and other allied machinery/manufacturing
2 0 1 0
GRAND TOTAL 564 38 388 19225
REGULATION –SETTING UP OF SEZ
BY CENTRAL GOVT
ISSUANCE OF LETTER OF APPROVAL
SEZ NOTIFICATION
AUTHORIZE OPERATIONS
26
SINGLE WINDOW MECHANISM
BOARD OF APPROVALS AT CENTRAL GOVT LEVEL
UNIT APPROVAL COMMITTEE AT STATE LEVEL
27
SEZ DEVELOPMENT PROCEDURE – STEP 1
RIGHTFUL POSSESSION OF LAND ON HAND
CLEARANCE FROM LOCAL GOVERNMENT
APPLICATION TO BOARD OF APPROVALS
RECOMMENDATION OF STATE GOVERNMENT
LETTER OF APPROVAL
NOTIFICATION OF SEZ
28
DEVELOPMENT PROCEDURE – STEP 2
DEMARCATION OF PROCESSING AND NON-PROCESSING AREA
MASTER PLAN APPROVAL BY PLANNING AUTHORITY
BUILDING LAYOUT AND INFRASTRUCTURE DEVELOPMENT APPROVAL
POSTING OF CUSTOMS OFFICERS
EXECUTION OF BOND FOR DUTY FREE BENEFITS BY DEVELOPERS/CO-DEVELOPERS
29
DEVELOPMENT PROCEDURE – STEP 3
COMPOUND WALL AROUND PROCESSING AREA
LEASING OF AREA TO UNIT HOLDERS
LETTER OF APPROVAL TO UNIT
EXECUTION OF BOND BY UNITS FOR DUTY FREE BENEFITS
PROGRESSIVE REPORTING OF SEZ PERFORMANCE BY DEVELOPER AND UNITS
30
GOOD GOVERNANCEDEVELOPMENT COMMISSIONER /UNIT
APPROVAL COMMITTEE – NODAL AGENCY FOR PERMISSIONS AND APPROVALS
ASSESSMENT, EXAMINATION AND CLEARANCE MONITORED BY OFFICERS DEPUTED FROM CUSTOMS DEPARTMENT
SEZ OPERATIONS MONITORED THROUGH PERIODICAL REPORTING AND M.I.S.
31
INCENTIVES FOR SEZ IN INDIA ALL MATERIALS REQUIRED FOR
INFRASTRUCTURE DEVELOPMENT BY DEVELOPERS ARE EXEMPT FROM CUSTOMS DUTY , CENTRAL EXCISE DUTY, AND STATE VAT
ALL MATERIALS REQUIRED FOR AUTHORISED OPERATIONS BY UNITS ARE EXEMPT FROM CUSTOMS DUTY, CENTRAL EXCISE DUTY AND STATE VAT
32
INCENTIVES FOR SEZ
ALL SERVICES RECEIVED IN CONNECTION WITH
AUTHORIZED OPERATIONS ARE EXEMPT FROM
SERVICE TAX
33
INCOME TAX- BENEFITS
100% INCOME TAX EXEMPTION FOR A BLOCK OF 10 YEARS OUT OF 15 YEARS FOR DEVELOPERS.
100% INCOME TAX EXEMPTION FOR 1ST FIVE YEARS AND 50% FOR SUBSEQUENT FIVE YEARS (FOR UNITS)
REINVESTMENT ALLOWANCE TO THE EXTENT OF 50% OF PLOUGHED BACK PROFITS CARRY FORWARD OF LOSSES(FOR UNITS).
34
INVESTMENT INCENTIVES-1100% FOREIGN DIRECT INVESTMENT
UNDER AUTOMATIC ROUTE FOR MANUFACTURING SECTOR IN SEZ UNIT
NO CAP ON FDI FOR SSI RESERVED ITEMS.
SETTING UP OFFSHORE BANKING UNITS ALLOWED IN SEZS
100% INCOME TAX EXEMPTION FOR 3 YEARS AND 50% FOR NEXT TWO YEARS FOR OFF SHORE BANKING UNITS
35
INVESTMENT INCENTIVES-2 EXTERNAL COMMERCIAL BORROWINGS UPTO
USD 500 MILLION A YEAR ALLOWED WITHOUT ANY MATURITY RESTRICTION FOR UNITS.
EEFC ACCOUNT FOR EXPORT PROCEEDS ALLOWED WITH FREEDOM TO INVEST OVERSEAS.
EXEMPTION FROM INTEREST RATE , SURCHARGE ON IMPORT FINANCE.
ENVIRONMENTAL CLEARANCE ON PRIORITY.
NORMS FOR SEZ SIZE REDUCED TO SUIT INDUSTRIES
36
SEZ – DEVELOPMENT ISSUES WHILE THERE IS A CENTRAL SEZ ACT,
MANY STATES DON’T HAVE THE CORRESPONDING STATE SEZ ACT
NATURAL RESOURCES UNEVENLY DISTRIBUTED
70% POPULATION DEPENDS ON AGRICULTURE AND FOOD PROCESSING SECTOR NOT FULLY DEVELOPED
37
Some of the IT/ITES/EHTP SEZs
Wipro SEZ, Andhra Pradesh HCL Technologies SEZ, Noida (UP)
EON Kharadi SEZ, Pune Mahindra SEZ, Chennai
38
SERUM BIO-PHARMA PARK SEZ , PUNE , INDIAINDIA ‘S FIRST BIO-PHARMA SEZ
39
40