Press Information Bureau

Government of India

Ministry of Commerce & Industry

17-August-2011 17:25 IST

Review of Guidelines for Minimum Space Criteria for SEZs

There is no proposal at present to review the guidelines of minimum space criterion for Special Economic Zones.

Requests are received for de-notification of notified SEZs as well as withdrawal of in-principle and formal approvals granted to various SEZ projects from time to time. Between December, 2008 and the present, the Board of Approval on SEZ has approved 33 such cases of de-notification of notified SEZs subject to the refund of duty benefits availed, if any, by the developer. The reasons for these requests for de-notification of notified SEZs, withdrawal of in-principle and formal approvals granted to various SEZ projects, wherever indicated by the applicants, include economic meltdown, poor market response, non-availability of skilled labour force, no demand for IT/ITES space and imposition of Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) on Special Economic Zones (SEZs).

As provided under the SEZ Act and Rules the requests received for de- notification of notified SEZs as well as withdrawal of in-principle and formal approvals granted to various SEZ projects are considered by the Board of Approval on SEZs and approval is granted subject to conditions, including the refund of duty benefits availed, if any, by the developer.

This information was given by the Minister of State for Commerce and Industry Shri Jyotiraditya M. Scindia in a written reply to a question, in the Rajya Sabha today.

DS/gk

De-notification of SEZs: approvals granted under SEZ Act subject to refund of duty benefits and statutory conditions. De-notification and withdrawal requests for SEZs are considered by the Board of Approval under the SEZ Act and Rules, with de-notification approvals granted subject to conditions including refund of duty benefits availed by the developer; applicants cite economic downturn, weak market demand, skill shortages, lack of IT/ITES demand and the imposition of MAT and DDT as reasons. There is no proposal to review minimum space criteria for SEZs.