The Government has withdrawn exemption from Minimum Alternate Tax (MAT) on Special Economic Zones (SEZs) with effect from 1st April, 2012.  The details of investment in SEZs post introduction of MAT is given below:  

The details of investment in SEZs post introduction of MAT

Sl.No,.	Financial Year	Investment* (Rs. Crore)
1.	2012-2013	2,36,717
2.	2013-2014	2,96,663
3.	2014 -2015	3,38,794
4.	2015- 2016	3,76,494
5.	2016- 2017	4,23,189
6.	2017-2018	4,74,917
7.	2018 -2019	5,07,644

* Calculated on cumulative basis.

The following initiatives have been taken in recent years for promotion of investment in SEZs: 

1. The Government periodically reviews the policy and operational framework of SEZs and takes necessary measures so as to facilitate speedy and effective implementation of SEZs. 
2. Minimum Land Area requirement for setting up of new SEZs has been reduced to 50% for Multi-product and Sector-specific SEZs.
3. Sectoral broad-banding has been introduced to encompass similar / related areas under the same Sector.
4. Dual use of facilities like Social & Commercial infrastructure by SEZs and non-SEZs entities has been allowed   in order to make SEZ operations more viable.
5. State Governments have been advised to make their own Single Window Clearance mechanism more effective.
6. Review meetings with the Development Commissioners of SEZs are held regularly. 

In order to facilitate paperless transaction for movement of goods for imports and exports from SEZs, a web-based platform - SEZ Online system has already been implemented.  Further, a mobile app named “SEZ India” having four sections SEZ Information, SEZ Online Transaction, Trade Information and Contact details was launched on 06.01.2017 to facilitate SEZ units/developers.

Investment made, employment generated and exports from SEZs are the quantifiable criteria for assessing development of infrastructure and economic development. Details of investment, employment generated and exports from SEZs during the past two years are given below:

Financial Years	Investment* (Rs. in crore)	Employment* (Persons)	Exports (Rs. in crore)
2017-2018	4,74,917	19,77,216	5,81,033
2018-2019	5,07,644	20,61,055	7,01,179

* calculated on cumulative basis.

This information was given by the Minister of Commerce and Industry, Piyush Goyal, in a written reply in the Lok Sabha today.

Withdrawal of MAT exemption for SEZs alters fiscal treatment and is paired with administrative measures to boost investment. Withdrawal of Minimum Alternate Tax (MAT) exemption for Special Economic Zones (SEZs), effective 1 April 2012, is identified as a key fiscal change affecting SEZ investment. Investment, employment and exports are stated as the quantifiable criteria for assessing SEZ development, with two year cumulative aggregates reported. Administrative measures to promote investment include reduced land requirements, sectoral broad banding, dual use infrastructure permissions, stronger single window clearance, regular reviews with Development Commissioners, and digital platforms (SEZ Online and a mobile app) to facilitate paperless transactions and information access.