Special Economic Zone (SEZ) Presentation

8/14/2019 Special Economic Zone (SEZ) Presentation

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Special Economic Zone (SEZ)Special Economic Zone (SEZ)PresentationPresentation


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What is SEZ ?What is SEZ ?

Liberal economic lawsLiberal economic lawsFirst established by the Peoples RepublicFirst established by the Peoples Republicof Chinaof ChinaIncrease in foreign investmentsIncrease in foreign investments


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VisionVisionAs many jobs as possibleAs many jobs as possibleTo promote investment fromTo promote investment fromdomestic and foreign source (FDI)domestic and foreign source (FDI)To promote of exports of goods andTo promote of exports of goods andservicesservicesTo develop infrastructure facilities of To develop infrastructure facilities of global standardsglobal standards


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Approval mechanismApproval mechanismFrom Applicant to State GovernmentFrom Applicant to State Government

Then from State Government to Board of Then from State Government to Board of ApprovalApproval

OROR

Directly to Board of Approval by ApplicantDirectly to Board of Approval by Applicant


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Administrative Set-Up Administrative Set-Up

Governed by a three tierGoverned by a three tierThe Board of ApprovalThe Board of ApprovalThe Secretary Department of The Secretary Department of CommerceCommerceThe Approval CommitteeThe Approval Committee


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The need for SEZ andThe need for SEZ andGovernments policyGovernments policy

SEZ policy introduced on 1/4/2000 in IndiaSEZ policy introduced on 1/4/2000 in India

To increase exportsTo increase exportsSEZ can be set up by private, public, jointSEZ can be set up by private, public, jointsector or by the state governmentsector or by the state government

Convert EPZ to SEZConvert EPZ to SEZ


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Provisions under SEZProvisions under SEZ

100% FDI for100% FDI formanufacturing sectormanufacturing sectorNo caps on foreignNo caps on foreign

investments for SSIinvestments for SSIreserved itemsreserved itemsIncome tax benefitIncome tax benefitDuty free import of Duty free import of

domestic goodsdomestic goodsExemption from CSTExemption from CST

Exemption fromExemption fromIncome tax onIncome tax oninvestmentsinvestments

Enhanced limit of 2.4Enhanced limit of 2.4crore for managerialcrore for managerialremunerationremunerationApplicability of laborApplicability of labor

lawslaws


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Performance of Units under SEZPerformance of Units under SEZ

Zone 2003-2004(Rs. incrores)

2004-2005(Rs. incrores)

Kandla SEZ 1018.82 1060.14SEEPZ-SEZ 7832.81 8298.59Noida SEZ 1534.17 4266.00

Madras SEZ 1037.96 1376.91Cochin SEZ 298.91 462.99Surat SEZ 869.90 1539.72

Jaipur SEZ --- 5.27


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SEZ IN CHINASEZ IN CHINA


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China Vs India, SEZsChina Vs India, SEZsComparison and Review Comp arison and Review


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The following offers a glance to the main The following offers a glance to the mainpoints of comparison between SEZs in Chinapoints of comparison between SEZs in China

and in India:and in India:


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INDIA V/S CHINAINDIA V/S CHINA

SIZESIZE

OWNERSHIPOWNERSHIP

ON WHAT KIND OF LANDON WHAT KIND OF LAND

OVERALL ECONOMIC SUCCESSOVERALL ECONOMIC SUCCESS

LAND ACQUISITIONLAND ACQUISITION

INITIATIVEINITIATIVE


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Advantages of SEZAdvantages of SEZ

Growth and developmentGrowth and developmentAttracts FDI and ExchangeAttracts FDI and ExchangeExposure to technology and globalExposure to technology and globalmarketsmarkets

Increase in GDP and economic modelIncrease in GDP and economic modelEmployment opportunities areEmployment opportunities arecreatedcreated


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Disadvantages of SEZDisadvantages of SEZ

Exploitation of laborersExploitation of laborers

Loss of revenue for GovernmentLoss of revenue for GovernmentFertile lands being used forFertile lands being used forestablishing industrial unitsestablishing industrial units


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Arguments in favor of SEZArguments in favor of SEZ

Leather industry nike & adidasLeather industry nike & adidastaking parttaking partGems and jewellery park inGems and jewellery park inHyderabadHyderabadFoxcoon techFoxcoon tech


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SEZ ProjectsSEZ Projects

NMSEZ (Navi NMSEZ (N avi Mumbai SEZ)Mumbai SEZ) Location: NaviLocation: Navi

Mumbai comprisesMumbai comprises3 zone3 zoneDronagiri,KalambolDronagiri,Kalambolii

Proposed areaProposed area2000ha (LP160ha)2000ha (LP160ha)

RHSEZ (RelianceRHSEZ ( RelianceHariyana SEZ)Hariy ana SEZ) Location: Gurgaon,Location: Gurgaon,

JhajjarJhajjar

Proposed areaProposed area10,000ha(LP350Ha)10,000ha(LP350Ha)


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ContCont

MSEZ(Mumbai MSEZ( Mumbai SEZ)SEZ) Location:Location:Uran and PENUran and PEN

Proposed Area:Proposed Area:10,000ha10,000ha(LP500Ha)(LP500Ha)

Jamnagar SEZ Jamnag ar SEZ LOCATION:LOCATION:JamnagarJamnagar

Proposed Area:Proposed Area:5000Ha5000Ha

LP Means Logistic Park


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What are Logistic parkWhat are Logistic park

It is an integrated plannedIt is an integrated plannedinfrastructure for facilitatinginfrastructure for facilitatingintermodel logistics. They are usuallyintermodel logistics. They are usuallylocated near primary production/& located near primary production/& consumption centers and majorconsumption centers and majorlogistics gatewayslogistics gateways


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Vision of RLPVision of RLP

To be the best-in-class integratedlogistics platform provider servingthe Indian & international supply

chain


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RLP - CONCEPTRLP - CONCEPT

Container LP

Rail LP Distribution LP

Technology LP

AIR LP

RLP


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ConclusionConclusion

SEZ can become a dangerous toolSEZ can become a dangerous tool

SEZ appeal to most developedSEZ appeal to most developedcountriescountriesA well defined strategy required forA well defined strategy required forSEZs to be successfulSEZs to be successful


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Documents

Special Economic Zone (SEZ) Presentation