sez_flow_new 12345 (1)

8/6/2019 SEZ_FLOW_New 12345 (1)

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Presented by:-

Sumukh Abraham(112)

Neha Patil(114)

Chandan Gaitonde(116)Pratik Vora(118)

Mansi Borkar(120)

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SPECIAL ECONOMIC ZONES

It is a geographical region that has economic andother laws that are more free-market-oriented

than a country's typical or national laws.

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HISTORY OF SEZ

y The first ever Export Processing Zone (EPZ) in Asia asset up by Government of India in Kandla in 1965.

y Based on the success of Kandla EPZ, in the beginningof eighties, seven more EPZs were set up in Bombay,Noida, Surat, Madras, Falta, Visakhapaptnam andCochin.

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Failure of EPZs

VERY LIMITED IMPACT

LESS EMPLOYMENT

VERY LOW EXPOR TS

INADEQUA TE INFRASTUCTURE

RESTR ICTI VE POLICIES

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FEATURESy Do not have to have a license for importing goods

y Exempted from paying customs duty

y Units inside the SEZ are allowed 100% foreign direct investment

y No fixed norms for wastage

y SEZ do not require separate documentation for EX IM and customs policy

y Single window clearance mechanism

y Public sector, private sectorand governmentwork together.

y Enhanced limit of Rs. 2.4 crore per annum allowed for managerialremuneration

Source: www.sezindia.nic.in

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y Generation of additional economic activity

y Promotion of exports of goods and servicesy Promotion of investment from domestic and

foreign sources

yCreation of employment opportunities

y Development of infrastructure facilities

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SEZ Layout

Processing Area

- Processing area is the demarcatedarea in SEZ where units can be locatedfor manufacture of goods or renderingof services

-Minimum processing area has beenuniformly fixed .

Non-processing Area

- Non-processing area is intended toprovide support facilities to SEZsprocessing area and may include:

-Educational Institutions

-Hospitals

-Hotels-Recreation & Entertainment Facilities

-Residential & Business Complexes

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T ypes of SEZ

Sector Specific SEZ

- Manufacture one or

more goods in a

particular sector.

-Render one or more

services in a particular

sector

Multi-ProductSEZ

- Manufacture multiple

goods in one sector or

multiple sectors

- Trading &

Warehousing

- Render two or moreservices in a sectoror

multiple sectors

SEZ in a Port/Airport

- SEZ in an existing port

or airport for

manufacture of goods

falling in two or more

sectors for trading and

warehousing or

rendering of services

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MINIMUM INVESTMENT

REQUIREMENT

ySector Specific SEZs

yMulti product SEZs

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NOTIFIED SEZ IN INDIA


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NOTIFIED SEZ IN INDIA (Continued)


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NUMBER OF FORM AL APPR OVAL OF SEZS AND THEIR

AV ER AGE SIZE PER STATE:

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APPROVAL MECHANISM


Project Approved

Board Of Approval

State Govt

Developer

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SEZ FRAMEWORK

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SEZ INCENTIVES & FACILITIES

yDuty Free Import

y Income Tax Benefits

yForeign Direct Investment

yService Tax

yEnvironment

yBorrowing benefits


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SEZ POLICIES

yEnvironment

yPower

y Water

yLabour

yProvision of roads and bridges


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SEZ EXPORT PERFORMANCES

Exports from the f unctioning SEZs (Value R s. Crore)

13854 18314 2284034615

66638

99689

220711.39

0

50000

100000

150000

200000

250000


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IMPACT ON INDIAy ADVANT AGES 15 year corporate tax holiday on profit

Duty Free import

Domestic goods duty free

Exemption from customs duty, Central Excise duty,

sales tax and service tax.

Setting up off shore banking units

No Strikes allowedExternal commercial borrowings of $500 million a

year allowed without any maturity restrictions.

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IMPACT ON INDIA

y DISADVANT AGES

Revenue losses

Creation of Land bank

Socio-economic disparities

Foreign investment not allowed in certain sectors

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CONTROVERSIESy J AMNAGAR INCIDENCE

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CONTROVERSIES

y NANDIGRAM V IOLENCE

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SCOPE OF SEZ

y Alternative manufacturing base ,particularly against the manufacturing giant China

y Service SEZs benefited even when lack of

infrastructure existsy Additional overall Employment opportunities

y Employment opportunity to a member of thedisplaced family

y Tax Benefits and incentives contribute towardsthe economy of the nation

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CURRENT SCENARIOy March 5, 2010

Sez developers can supply power without license from states.

y April 22, 2010GU J ARA T Sezs EXPOR T GOODS WOR TH 1.12 lakh crore

y July 19, 2010

Sezs EXPOR TS IN Q1 R ISE 68% TO 58,757 CROREy A ugust 15, 2010

TEN Sezs IN GU J ARA T CLOCK 45% OF India's EXPOR TS

y November 17, 2010Government to setup 84 urban primary healthcare centres, 12 referral

hospitals

y December 17, 2010

Pune

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CONCLUSION

y Attract foreign investment and help the growth of theexport industry.

y Help the indigenous economy improve its level of technology.

y Providing generous tax breaks would divertexisting investment into these zones.

y It is a safe heaven for tax free investment by rich

industrialists.y Increased control of govt.

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sez_flow_new 12345 (1)

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