Question : Special Economic Zones

(a) the details of Special Economic Zones (SEZs) in the country at present, State/UT-wise;
(b) the details of the contribution made by these SEZs in exports in terms of value and employment generation during the last three years and the current year, State/UTwise;
(c) whether it has come to the notice of the Government that certain fake SEZs are being operated in the country;
(d) if so, the details of such fake SEZs identified during the last three years, Statewise along with the action taken by the Government against these SEZs;
(e) whether the Government has formulated separate legislation for SEZs in the country; and
(f) if so, the details thereof along with the manner in which they are different from ordinary legislation and the steps taken by the Government to strengthen SEZs in the country?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)
(SMT. NIRMALA SITHARAMAN)

(a) and (b): In addition to Seven Central Government Special Economic Zones (SEZs) and 11 State/Private Sector SEZs set-up prior to the enactment of the SEZs Act, 2005, approvals have been accorded to 405 proposals for setting up of SEZs in the country. Presently, out of 331 notified SEZs a total of 206 SEZs are operational. States/UTs-wise details of the contribution to exports and employment generation during the last three years and the current year are at Annexure.

(c): No Madam.

(d): Does not arise.




(e) and (f) : Government has enacted Special Economic Zone (SEZs) Act, 2005 to achieve the objectives of SEZ policy. The salient features of the Act are: -

(i) SEZ is a designated duty free enclave to be treated as a territory outside the customs territory of India ;
(ii) SEZ Developers and Units will have Direct Tax and Indirect Tax concessions as prescribed in the SEZs Act, 2005.
(iii) No licence will be required for import of inputs for operations in SEZ ;
(iv) Domestic sales by SEZ units will be subject to applicable customs duties and Foreign Trade Policy in force;
(v) SEZ units will have freedom for subcontracting;
(vi) No routine examination by customs authorities of export/import cargo;
(vii) The Unit in SEZ shall achieve Positive Net Foreign Exchange to be calculated cumulatively for a period of five years from the commencement of production;

The various steps taken to strengthen SEZs in the country are as under:

i. Minimum Land Area requirement for setting up of new SEZs has been reduced to 50% for Multi-product and Sector-specific SEZs.
ii. Sectoral broad-banding has been introduced to encompass similar / related areas under the same Sector.
iii. A new sector ''agro-based food processing'' sector has been introduced to encourage agro-based industries in SEZs.
iv. Dual use of facilities like Social & Commercial infrastructure by SEZs and non-SEZs entities has been allowed in order to make SEZ operations more viable.
v. Online processing of various activities relating to SEZ Developers and Units has been introduced for improving ease of doing business.

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Annexure to the Lok Sabha Unstarred Question No. 3161 for 5th December, 2016.

States/UTs-wise details of Exports and Employment from SEZs during the last three years and current financial year
Exports
(Rs. in Crore) Employment*
(In Persons)
Sl. No. States/UTs 2013-14 2014-15 2015-16 2016-17
(as on 30.9.2016) 2013-14 2014-15 2015-16 2016-17
(as on 30.9.2016)
1 Gujarat 225042 179791.75 135719.65 67191.88 75586 63475 68224 71378
2 Karnataka 51372.88 55197.83 54307.07 23532.64 193686 237138 237138 260884
3 Tamil Nadu 71417 68103.63 79296.62 37970.79 268405 287275 326569 343428
4 Maharashtra 56399.23 62535.90 71618.53 34739.83 339919 360543 363760 378470
5 Kerala 8003.64 6540.2 10386.99 8258.78 32311 49652 49652 52058
6 Andhra Pradesh 33291.07# 7887.61 10843.94 5973.24 157280 47506 56456 56502
7 Telangana 0 37108 46944.76 25129.55 0 154784 188607 205826
8 Uttar Pradesh 16282.42 16516.77 19756.72 10569.64 83970 96591 105609 113705
9 West Bengal 16204.27 9872.79 11832.13 6831.68 48112 51241 63160 64654
10 Haryana 8740.43 11139.50 15673.53 8110.96 50208 55256 84812 90695
11 Madhya Pradesh 2984.23 4009.46 4970.05 3740.70 10308 10828 15624 15882
12 Rajasthan 2036.59 2091.34 2233.9 1199.60 14574 16321 17723 17747
13 Chandigarh 1778.15 2084.24 2561.54 1335.05 5927 7297 8295 8555
14 Odisha 386.09 596.66 879.11 1149.70 1577 2347 3322 6125
15 Punjab 136.72 290.79 312.58 165.64 1299 1993 2283 2275
16 Chhattisgarh 1.84 3.19 0.11 0 119 41 119 125
17 Goa 0 0 0 0 28 28 28 28
TOTAL 494077 463770 467337 235900 1283309 1442316 1591381 1688337
* Calculated on cumulative basis.
# Including Telangana.

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