Press Information Bureau

Government of India

Ministry of Commerce & Industry

14-December-2011 17:05 IST

A SEZ may be set up either jointly or severally by the Central Government, State Govt. or any person for manufacture of goods or rendering services or for both or as a free trade warehousing zone.  Such proposals duly recommended by the concerned State Government are considered by the Board of Approval for SEZs.  No such proposal recommended by the Govt. of Bihar is pending with this Department.  

 In addition to seven Central Government Special Economic Zones (SEZs) and 12 State/Private Sector SEZs set up prior to the enactment of SEZ Act, 2005; formal approval has been accorded to 582 proposals out of which 382 SEZs have been notified. 

A total of 148 SEZs are already exporting.  A statement containing state-wise distribution of SEZs is annexed. 

As on 30^th September, 2011, the total investment of Rs. 2,77,259 crore approximately has been made in SEZs.  SEZs being set up under the SEZ Act, 2005 are primarily private investment driven.  

 Upto 10^th December, 2011, upon the requests of the developers, the Board of Approval on SEZs has approved 39 cases of de-notification of SEZs subject to the refunded of duty benefits availed, if any, by the developer. Out of 39 cases, 23 relate to information technology/information technology enabled services, five are biotechnology and two each are engineering and textile industry and one each are power, apparel, handicraft, stainless steel & ancillary/downstream industry, agro, gems & jewellery and services SEZs.  Reasons given for these requests include economic meltdown, imposition of Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) on SEZs etc. In all such cases, either the developers have not availed of duty benefits or the developers are willing to refund/ refunded benefits if availed.  

Annexue

This information was given by Shri Anand Sharma, Minister for Commerce, Industry and Textiles in written reply to a question in Rajya Sabha today.

DS/GK

Special Economic Zone approvals and de-notifications emphasise duty-benefit refund obligations for developers. Special Economic Zone establishment requires state recommendation and central approval; as reported, no Bihar recommendation is pending. There have been 582 formal approvals, 382 notified SEZs and 148 exporting SEZs, with private investment predominant. De-notification is permitted on developer request subject to refund of duty benefits where availed; 39 de-notifications were approved subject to such refunds, prompted by economic conditions and tax changes including imposition of MAT and DDT.