Govt to simplify SEZ approval
The commerce ministry has initiated steps to reduce the time taken to develop
Special Economic Zones (SEZs) by simplifying procedures to get the tax-free
industrial enclaves notified.
Developers will now be able to get their land classified as an SEZ at the initial stage
of approval by submitting legal documents that prove land ownership.
With exports falling sharply in the last six months, faster development of SEZs is
seen as one way of increasing overseas sales of Indian goods and services, an official
said.
In the past, formal approval — the first step in notifying an SEZ — was based on a
statement by a developer confirming possession of land. Actual documents proving
ownership were not required at this level of approval.
Thereafter, the developer had to submit a series of documents including proof of
ownership of land, a non-encumbrance certificate and vacancy and contiguity
certificates to get the zone notified. Now, all these documents will have to be
submitted at the first stage.
Experts point out that the move will help serious zone developers since only firms
that actually own the land will now apply. “This shows that the ministry is serious
about taking the SEZ policy forward,” said Tapan Sangal, senior manager,
PricewaterhouseCoopers.
“This move will also ensure that investments flow in to the zones quickly. Moreover,
the pace of job creation in the zones will also become faster,” said L B Singhal,
director general of Export Promotion Council on EoUs and SEZs.
Since 2006, about 550 SEZs have been given formal approval. But the commerce
ministry was concerned that only 320 were notified. This was because many of the developers adopted a
wait and watch policy in the wake of the global economic crisis.
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