Report on SEZs notified under SEZ Act, 2005

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 577 proposals out of which 385 SEZs have been notified. A total of 166 SEZs are exporting. Statement containing State-wise distribution of SEZs is annexed.

Setting up of SEZs and their functioning is regulated as per the provisions of SEZ Act, 2005 and Rules framedthereunder. Since December, 2008 and till 13th March, 2013 the Board of Approval on SEZ has approved 54 requests for de-notification of SEZs. The reasons given by developers for de-notification include economic meltdown, poor market response, non-availability of skilled labour force, lack of demand for space and imposition of Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) on Special Economic Zones (SEZs).

Exports from the Special Economic Zones (SEZs) have increased from Rs. 3,15,868 crore in 2010-11 to Rs. 3,64,478 crorein 2011-12, registering a growth of 15.39%.   The total exports from SEZs in the first three quarter of the current financial year 2012-13, have been to the tune of Rs. 3,53,195 crore approximately registering a growth of 35.34% over the exports of corresponding period of the previous financial year.

The total employment to 10,19,146 persons have been provided.  As per information made available by the SEZ developers in respect of 381 SEZs, 82.3% of land is waste/barren/ dry/industrial, 15% of land is single crop and 2.7% of land is double crop. As on 13th March, 2013, 577 formal approvals for SEZs covering a total area of 67,787 hectares have been granted. Figures of SEZ Exports, Employment and Investment during the last three years and the current financial year are as under:

Financial Year

Exports

(Rs. crore)

Employment

Investment

(Rs. crore)

2009-2010

2,20,711

5,03,611

1,48,489

2010-2011

3,15,868

6,76,608

2,02,810

2011-2012

3,64,478

8,44,916

2,01,875

2012-2013*

3,53,195

10,19,146

2,38,990

*April to December, 2012

There are adequate safeguards in the SEZ Rules, 2006 to prevent SEZs from indulging in real estate business.  In terms of Rule 11(9) of the SEZ Rules, 2006, sale of land in an SEZ is not allowed. Further land being a State subject, the Board of Approval approves a proposal for establishment of a Special Economic Zone (SEZ) only on the explicit recommendation of the concerned State Government and subject  to the terms and conditions prescribed in the SEZ Act and Rules. Issues related to availability/provisioning of land for SEZs are in the domain of the State Government agencies concerned.

Annexure

State-wise distribution of Formal Approvals, Notified and Exporting SEZs  

              (As on 13.03.2013)

State

Formal Approvals

Notified SEZs

Exporting SEZs (Central Govt. + State Govt./Pvt. SEZs + notified SEZs under the SEZ Act, 2005)

Andhra Pradesh

109

77

38

Chandigarh

2

2

2

Chhattisgarh

2

1

1

Delhi

3

0

0

Dadra & Nagar Haveli

2

1

0

Goa

7

3

0

Gujarat

43

30

17

Haryana

46

35

4

Jharkhand

1

1

0

Karnataka

61

40

21

Kerala

29

21

7

Madhya Pradesh

19

7

2

Maharashtra

102

64

19

Manipur

1

0

0

Nagaland

2

2

0

Orissa

10

5

1

Puducherry

1

0

0

Punjab

8

2

2

Rajasthan

10

10

5

Tamil Nadu

67

52

33

Uttar Pradesh

31

21

8

Uttarakhand

2

1

0

West Bengal

19

10

6

GRAND TOTAL

577

385

166

This information was given by the Minister of State in the Ministry of Commerce & Industry, Dr. DPurandeswari in a written reply in the Lok Sabha today.

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Tags: Board of ApprovalSEZ ActSpecial Economic Zone

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