Question : Incentives to Infrastructure Projects like SEZs

(a) the number of Special Economic Zones (SEZs) approved and operational in the country;
(b) whether the Government is considering to extend fiscal incentives on the lines of SEZs to infrastructure projects;
(c) if so, the details thereof and the action taken by the Government in this regard;
(d) whether the Government is also considering to give sops like interest subsidy, reimbursement of part of capital investment, stamp duty exemption and exemption of tax on electricity to the infrastructure projects;
(e) if so, the facts thereof; and
(f) the time by which the final decision is likely to be taken by the Government in this regard?

THE MINISTER OF COMMERCE AND INDUSTRY
(SHRI PIYUSH GOYAL)

(a): There were 7 Central Government Special Economic Zones (SEZs) and 12 State/Private Sector SEZs prior to the enactment of the SEZ Act, 2005. In addition, 416 proposals for setting up of SEZs in the country have been accorded formal approval under the SEZ Act, 2005. Presently, 351 SEZs are notified, out of which 232 SEZs are operational.

(b) to (f): Department of Economic Affairs facilitates financing on easier terms and with enhanced limits to the infrastructure sub-sectors (including SEZs) which are included under the category of social and commercial infrastructure in the Harmonized Master List notified on 27th March, 2012. Further, Department of Revenue, under the existing provisions of section 35AD of the Income Tax Act, 1961, inter alia, provides for investment linked incentive to a business in the nature of developing or operating and maintaining or developing, operating and maintaining of a specified infrastructure facility. The tax exemptions and other incentives allowed to SEZs are provided under Section 26 of the SEZ Act, 2005.

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