2. •Special Economic Zone (SEZ) is defined as "a specifically delineated
duty free enclave and shall be deemed to be foreign territory for the
purposes of trade operations and duties and tariffs".
•SEZs
an engine for economic growth
supported by quality infrastructure
complemented by an attractive fiscal package
with the minimum possible regulations.
•Government of India have notified Special Economic Zones (SEZs) Act
2005 and notified Special Economic Zone Rules 2006 with a view to
augmenting infrastructure facilities for export.
SpecIal economIc zone
3. Export Processing In 1990s, as a part
Zone (EPZ) of Special Economic Full law and rules
policy1965. New Policy in
reforms, powers Zones Act MAY effected February
April 2000
1st EPZ was set up delegated to zone 2005. 2006.
in Kandla (Gujarat) authorities.
SEZ CATEGORIES
» Free Trade Zones (FTZ)
» Export Processing Zones (EPZ)
» Free Zones (FZ)
» Industrial Estates (IE)
» Free Ports
» Urban Enterprise Zones
SpecIal economIc zone
4. • During the past four decades many developing countries have been
creating special zones to promote their exports and earn foreign
exchange.
• The term Export Processing Zone (EPZ) was first coined to identify
the Shannon zone set up in Ireland in 1958.
• India established its first EPZ in 1965 in Kandla (Gujarat)
• In 1984 EPZs were established in Cochin (Kerala), Falta
(Calcutta,now Kolkata), Madras (now Chennai) and NOIDA (Uttar
Pradesh).
• The Visakhapatnam EPZ (Andhra Pradesh) was established in 1989
and the Surat EPZ (Gujarat) in 1997.
SpecIal economIc zone
5. SEZ Act, 2005
With a view to overcome the shortcomings experienced on account of the multiplicity of
controls and clearances; absence of world class infrastructure, and an unstable fiscal
regime and a view to attract larger foreign investments in India,
the Special Economic Zones (SEZs) Policy was announced in April 2006.
•The main objectives of the SEZ Act are:
GENERATION OF ADDITIONAL ECONOMIC ACTIVITY
PROMOTION OF EXPORTS OF GOODS AND SERVICES
PROMOTION OF INVESTMENT FROM DOMESTIC AND FOREIGN
SOURCES
CREATION OF EMPLOYMENT OPPORTUNITIES
DEVELOPMENT OF INFRASTRUCTURE FACILITIES
SpecIal economIc zone
6. States where SEZ Act has been enacted &
is in force
SpecIal economIc zone
7. SEZ policy has directly benefited economy in following ways:
Employment Generation : SEZs generate direct employment for skilled and
unskilled labour ; indirect employment and employment for women workers.
Skill Formation: Formation of SEZs and new job requirements increase firm level
activity whereby the labour force acquires skills from within the firm through
training and learning.
Attract investors:: SEZs offer a highly conducive investment scenario for
developers. No tax during development and operational stage. At profit stage
100% income tax exemption for Ist 5 yrs, 50% for next 5 yrs.
Technology Upgrading: SEZs attract export-oriented FDI and promote other forms
of collaboration between local firms and MNCs.
Exports: EPZ exports registered an impressive growth rate over the period 1966 to
2002. EPZ exports increased in India from less than Rs.1 million in 1966 to over Rs.
97727 million in 2002.
Manufacturing Sector: Share of manufacturing industry in the exports grew from
negligible percentage in 1970 to above 6 % in 2005.
(Sources: Ministry of Commerce, Economic Survey) SpecIal economIc zone
10. AREA ALLOCATION IN TERMS & USE
SECTOR SPECIFIC SEZS
•PHARMA
•IT/ITES
•GEMS & JWELLERY
•BIO TECHNOLOGY
•CHEMICALS
•CONSUMER APPLIANCES
•MEDICAL EQUIPMENTS
•ENGINEERING BASED
•APPAREL & READYMADE
•AUTOMOTIVE COMPONENTS
•TELECOM EQUIPMENTS
•R& D
•PROCESSED FOOD & BIO EQP.
•ENTERTAINMENT &
RECREATION
SpecIal economIc zone
11. Development Norms for Non Processing Areas in SEZs.GUIDELINES – MULTI
DEVELOPMENT
PRODUCT SEZ
Permissible FAR and land area is based on the following assumptions
• The area permissible for the non processing use is Max 50%
• The norms are based on 100 FAR on total area under non processing zone
• Min area for Sector Specific SEZ – 100 ha
• Min area for IT/ITES, Biotechnology, Gems and Jewellery SEZ- 10 ha
• Min area for Multi Product SEZ – 1000 ha.
(Sources: Ministry of Commerce, Economic Survey) SpecIal economIc zone
15. SEZs in India
At present there are Eight functional SEZs
located at:
•SantaCruz (Maharashtra),
• Cochin (Kerala),
• Kandla and Surat (Gujarat),
• Chennai (Tamil Nadu),
•Visakhapatnam (Andhra Pradesh),
• Falta (West Bengal)
• Nodia (Uttar Pradesh) &
• Nagpur (Maharashtra)
•Raipur (Chatisgarh)
•Indore(Madhyapradesh)
•Jamshedpur(Jharkhand)
•Indore(Madhyapradesh)
•Satna(Madhyapradesh)
SpecIal economIc zone
16. •By the end of the 1990s, it was found that India’s EPZs were not performing as
well as China’s SEZs.
•Major reasons behind poor Indian SEZ’s
performance w.r.t China.
Limited scale and overcrowding.
Inadequate logistic supports.
Poor infrastructure.
Governments in difference and red tapism
in matters of foreign direct investment.
Lack of clarity in incentive packages.
Poor coordination between state and
municipal governments with central
SpecIal economIc zone
17. FALTA SEZ
West Bengal
•Set up by the Government of India in the year 1984.
•Subsequently, two other SEZs were set up. They were MANIKANCHAN SEZ for gems
and jewellery and WIPRO SEZ for IT and ITES, located at Salt Lake, Sector-V, Kolkata.
–It is about 55 kilometres from Calcutta city and 45 kilometres from the southern suburbs.
–It is well connected by a developed network of roads including a State highway, two
ports at Calcutta and Haldia and International airport at Dumdum.
•Infrastructural Facilities available at FALTA SEZ
Gross area 280 acres (acquired 87acres and transferred
from CPT 193acres).
Location - Panchayat area.
Area Developed- 253 acres (full infrastructural facilities)
Area under development 27acres
Built - up space - SDF-15570 sq.m.(2nos.) - fully allotted.
Industrial shed- 15350sq.mtr.(7 nos) - fully allotted.
million liters per day water supply with drainage
1
facilities.
Electric sub-station for dedicated power supply for all
categories, supplemented by local sub-stations.
SpecIal economIc zone
