Presentation about SEZ scheme in India

1. - SEZ CONSULTANTS
Welcomes you for Presentation on
‘ Special Economic Zone Scheme ‘

2. History of Free Trade Zones
First Free Trade Zone in the world had started on 1st January 1965
at Kandla Port , Kutch, India.
By 1978 India had another four free trade zones at Mumbai ,
Chennai , Noida and Falta.
In 1978 China had gone through major economic make over and
they had realized power in concept of Free Trade Zone’s.
First Chinese Free Trade Zone became operational in 1984 –
Shenzhen
In year 2000 one zone of Shenzhen was Exporting thrice of India.
As on today there are about 2000 operation free trade zones spread
over 150 countries in world

3. Path of Special Economic Zone
in India
Commerce minister Mr. Maran had introduced SEZ Concept in year 1997 for first
time in India.
SEZ was added ( chapter 7 ) as Export Promotion Scheme in India as part of
Exim Policy
First Policy on SEZ is came on 1st April , 2000 and was in power till 2006.
Firstly Operation EPZ are transformed into SEZ’s
First Private SEZ in India has started at Surat by DGDC.
In January , 2006 SEZ Act , 2005 and SEZ Rules , 2006 came in force which
Separated SEZ’s from FTP
SEZ Act , 2005 & SEZ Rules , 2006 got Overriding effect since April , 2006

4. Current Status of SEZ’s in India
Approved
SEZ’s 1029
Single
Product / Operational
Concept SEZ’s 143
Based - 66
Multi-
IT/ITES 69
Product 8

5. Performance of SEZ’s In India
Total Exports
from SEZ’s in
India – About
2,50,000
Crores
Export
FDI Share in
Growth Rate
Investment –
is approx 125
approx 65%
%
Indirect Direct
Employment Employment
Generate – Generate –
approx. approx.
5,00,000 2,25,000

6. Benefits & Incentives for SEZ Units
Corporate/ Income Tax Benefits for 15 Years
No Sun Set Clause
Duty Free Enclave through out stay in SEZ
Tax Free Enclaves through out stay in SEZ
Most operations are online/ single window
Liberalized Labor Norms
24 X 7 – 365 Days operations
Sub Contracting – Job Works are allowed

7. Benefits & Incentives for SEZ Units
100% FDI through Automatic Route
100 % Capital A/c Convertibility
No Minimum Export Obligation
No Fixed Value Addition Norms ( Except Diamonds)
Freedom from Industrial Licensing
Local Sales is allowed on payment of full duties
Declared Foreign Territory for Duties & Taxes
Facilities of Offshore banking units

8. Qualification for Being an SEZ unit
Exporter ( Manufacturer /
Services / Merchant )
Prospects of Exports
Positive Foreign Exchange
Earning
All exports except prohibited
items
No cases of eviction
pending with CBDT

9. Benefits for SEZ Developers
100 % Corporate / Income
Tax Benefit in block of 10
years
100 % Commercial
disbursing of Plots/ Units
Duty Free procurements for
Development of SEZ
Duty Benefits on supporting
Infrastructure
100% FDI is allowed
Declared Public Utility
Services

10. Qualification for SEZ Development
Collective Net
Minimum Land
worth of
Requirement
Developers of
for Multi-
Multi-Product
Product SEZ –
SEZ - 250
1000 hectors
Crores
Collective Net
Minimum Land
worth of
Requirement
Developers of
for Product
Product Based
Based SEZ –
SEZ - 50
100 hectors
Crores

11. Concerns regarding SEZ Benefits
MAT / AMT
Profit Linked
Transfer 0f / Investment
Assets Linked
Sec. 10 AA – Non-
Re- Cooperation
Structuring of States
Difference in
Definitions

12. Path Ahead for Success of SEZ’s
Requirement of
Stable Central serious
Government Developers
Policies
Solid & Well-
Clarity about
defined Policies
New DTC is
/ Acts from local
Pending
governments
Compatibility
Solving issue
with
of overriding
forthcoming
authorities
GST

13. Thank You
? are Welcome

14. Contact Information
 Mr. Swanand Dhondse – CEO
( Mobile no :- 989 203 5570 )
 Website :- www.sez-india.net
 E-mail :- ceo@sez-india.net
 Office Ph. :- 022 2566 3610