Press Information Bureau

Government of India

Ministry of Commerce & Industry

21-December-2011 15:29 IST

SEZs for Promotion of Exports

  The main objectives of the SEZ Act, 2005 are:-

(i)   generation of additional economic activity

(ii)   promotion of exports of goods and services

(iii)  promotion of investment from domestic and foreign sources

(iv)  creation of employment opportunities

(v)  development of infrastructure facilities

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. Physical exports from the SEZs have increased from Rs. 2,20,711 crore approximately in 2009-10 to Rs. 3,15,868 crore approximately in 2010-11, registering a growth of 43.11%.  The total physical exports from SEZs as on 30th September, 2011 i.e. in the first half of the current financial year, has been to the tune of Rs. 1,76,479.69 crore approximately registering a growth of 26.20% over the exports of corresponding period of the previous financial year.   As per provisions of the SEZ Rules, 2006, an approval is valid for a period of three years within which time effective steps are to be taken by the Developer to implement the approved proposal. On a request received from the Developer, the Board of Approval can further extend the validity.

  The fiscal concessions and duty benefits allowed to SEZs are inbuilt into the SEZ Act, 2005.   These exemptions are in the nature of incentives for export and infrastructure creation and are consistent with the principles that guide export promotion initiatives of the Government in general.

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

DS/GK

Approval validity for SEZs under the Rules allows Board extensions and fiscal incentives support export promotion and infrastructure development. The SEZ Act, 2005 promotes exports, investment, employment and infrastructure. Approvals issued to Developers are valid for three years under the SEZ Rules, 2006 and may be extended by the Board of Approval on request. Fiscal concessions and duty exemptions are inbuilt in the Act as incentives to support export promotion and infrastructure creation.