Professional Documents
Culture Documents
By
Ritesh Kumar Ojha
(Roll No. – 08616688518)
(MBA 2018-20)
1
CONTENT
CHAPTER EXPERIMENT PAGE NO.
Acknowledgement
Certificate
1 INTRODUCTION 5-11
1.1 Introduction to SEZ 5
1.2 Objective 7
1.3 Scope of study 8
1.4 Industry profile 8
2 LITERATURE REVIEW 12-22
2.1 Board of approval (BOA) 12
2.2 Duties, power and functions of board 14
2.3 The Special Economic Zone rules 2006 14
2.4 Development Commissioner 18
2.5 Setting up of a unit 18
2.6 Functions of SEZ authority 20
2.7 Service tax & laws 22
3 ANALYSIS & FINDINGS 25-28
3.1 Exemptions and concession 25
3.2 Facilities and incentives 26
3.3 Revival of sick units 26
3.4 Threats to SEZ 27
4 CONCLUSION 29-35
4.1 How SEZs contribute to economy 29
4.2 Benefits to units functioning inside SEZ 30
4.3 Key advantages of SEZ units in India 31
References 35
2
ACKNOWLEDGMENT
I Ritesh Kumar Ojha, sincerely thanks to all those people who have given me
continuous guidance and help and my deepest thank you to our Professor of USMS
Ms. Bharti the Guide of the project for enlighten and showing path to me in the
completion of project and correction of various documents with attention and care.
I would also like to incorporate guidance that I have received from official of Noida
Special Economic Zone who helped me in understanding all the practical aspects
involved at each stage by in completion of this project.
A respectful thank you for the team of NSEZ specially Asst. Development
Commissioner Mr. Subodh Kumar Jha for bringing out all the practical aspects and
making me student of his vast experience and knowledge.
3
UNIVERSITY SCHOOL OF MANAGEMENT STUDIES
CERTIFICATE
This is Certified that this project Report “Functioning of Special Economic Zone
(NSEZ Noida)” is the bonafide work of “Ritesh Kumar Ojha” Enrollment No.
08616688518 of batch “2018-2020” who carried out the project work under my
supervision.
Signature
Project Supervisor
Examiner
4
CHAPTER 1
INTRODUCTION
INTRODUCTION
TO SEZ
Being a developing country India was able understand the effectiveness and need
visualizing advantages of the Special Economic Zone model in enhancing and
generating exports for a country, being a step taker in Asia, In 1965 first Export
Processing Zone was established in Kandla.
Special Economic Zone act as a key to drive the economy of a country by gathering
all the industries at a place shaping them with proper guidance and providing the
desired infrastructure for carrying out the business under the involvement of Central
and State Government with minimum possible regulations and offering various
incentives and relaxation.
Special Economic Zone is a range of area chosen by government for setting up firms
and industries to promote the various domains collectively under a single roof. This
area comprises of varied degree of rules and regulation in multiple terms and
logically it is situated outside region for a country having other laws in terms of
economic and industrial terms.
These rules are fabricated in a manner so that they facilitate export of goods and
services and it acts as a point of attraction or setting up a business. It also involves
trading of goods from procuring with multiple nations.
The institutions in SEZ are often done by foreign or native investments and also the
merchandise and services are often exported globally or oversubscribed among the
country.
SEZs model are adopted in different from the laws of country however {they square
measure designed to assist the producing corporations that are mercantilism their entire
production globally many countries, as well as China, India, Jordan, Poland,
Kazakhstan, Philippines and Russia. North Korea.
EPZ or Export processing Zone square measure a bit like SEZ whose economic
laws square measure completely varies from the typical laws of a nation in order to
make the product and services available globally. Various other nations shows their
interest in promoting these things and in this way we tries to arrive at win-win
situation facilitating export and imports.
Export Processing Zones act as a catalytic agent, EPZ are focusing on the areas
where objective is to promote the export and to increase the NFE. The units are
subtitled with multiple relaxation in functioning and promoting export of goods and
services which will make the product and services competitive in market of
international platforms.
Multiple relaxations are provided such as duties and taxes in import of raw materials
and machines which results in to industries growth.
SEZ are created to focus on some specific domains which includes the
multidimensional approach including exports, infrastructure, facilities, skills etc.
6
Few major aspects are
OBJECTIVE
7
SCOPE OF STUDY
We will be able to analyze the strengths of SEZ, why it had been initiated, it’s
performance and advantages, what extra steps ought to be taken so as to create
them more practical and productive uses.
How a firm will fancy the advantages of trade being placed within SEZ.
What are numerous steps concerned in process a cargo from SEZ to completely
different countries.
Remaining countries could initiate over the time for advantages of their individuals.
INDUSTRY PROFILE
Initially developer of SEZ submits a drafted proposal for setting up a special zone to
concern government. The state government should forward the request with its own
views and perspective including remarks considering developers views and
enthusiasm to carry and ensuring functioning of a zone to the board of approval
within 45 days from the date of receiving letter of proposal. The owner of business
has freedom to submitting the request letter directly to Board of Approval.
ADMINISTRATIVE SET UP
The Approval Committee acting at the Zonal level deals approvingly of units within
the SEZs and different connected problems at specific zone.
Each Zone is operated and functioned with a Secretary from Ministry of Commerce
termed as Development Commissioner who acts as per the rules, regulations and
have full control over a SEZ including all key functions like deploying various officers.
8
Appraisers, Provisionary Officers, Security officers, roles of Asst. to DC, daily
functioning of SEZ, long term actions and formulation of plans, guiding various units
and entrepreneurs for their internal process improvements and measure.
All the clearances relating to the code number of entrepreneurs, changing name of
firm, changing board of directors of a firm, functioning agency are operated at the
level of zone of respective SEZ with the authorities and power of Development
Commissioner
The evolution and monitoring of units under Special Economic Zone are done y
committee of the Approval on the premise of calculating Net Foreign Exchange
(NFE) and units are to blame for penal action beneath the supply of Foreign Trade
(Development and Regulation) Act, just in case of violation of the conditions of the
approval.
9
SOME DEFINITIONS RELATING SEZ:
Developer: Developer is a licensed one and authorized body that has been
approved by the Government of India (MOC) with a LOA by the sub-section ten of
section 3 comprises a full designation and power to develop SEZ along with a Co-
Developer as companion.
Entrepreneur: Entrepreneur may be a one that has been allotted a letter of approval
by the event Commissioner (DC) beneath Sub-section (9) of fifteen.
Export: Export shows the output of a firm means what are the goods or services a
unit is able to supply, out of India from a SEZ, by road mode, air mode or sea mode
of shipment.
Supplying the goods or providing the services, from Domestic Tariff Area (DTA) to a
SEZ unit or to a developer or Supplying the goods or services, from one unit to
another unit or developer, in the different or same Special Economic Zone of nation.
Formal Approvals implies once the Developer will have the correct (freehold/Lease/
organic process rights) over the land as well as possession and on the idea of the
recommendations of the government to Central Government, Board of Approval
considers the case in meeting and recommends “formal” approval that is finally
granted by Ministry of Commerce (MOC).
Notified SEZs implies, once the BOA provides formal approval and also the
involved DC provides AN examination report certifying the contiguousness and
vacancy of the world, the world is considered Notified SEZ.
10
In-Principal Approvals implies once the Developer doesn't have the correct
(freehold / Lease/ organic process rights) over the land as well as possession and on
the idea of the obligatory recommendations of the government to central
Government Board of Approval considers the case in meeting and recommends
“formal” approval that is finally granted by Ministry of Commerce (MOC).
The spaces falling at intervals the Special Economic Zones is also demarcated by
the central Government or any authority fixed as process space & Non-processing
area.
This is a step within the right direction, because it promotes creation of good zones,
wherever entrepreneurs can get access to world category social infrastructure,
together with process space, thereby obtaining the power to draw in talent.
Rule eleven of the SEZ Rules 2006 deals with demarcation of process and Non-
Processing areas in SEZs. As per sub rule ten the Developer/ Co-developer is
needed to rearrange for housing facilities of management and office however
additionally for the employees of SEZ units.
Further the infrastructure created for functioning of a firm or public needs and
recreational activities inside Special Economic Zone shall comprise all benefits on
duty and taxes while the other infrastructure created additionally to it shall not be
eligible for any exemption from duties/taxes collectable.
Recently, the Board of Approvals ('BOA') had granted approvals for approved
operations to SEZ developers within the non-processing space with the condition
that it are often used just for the needs of employees/ persons operating within the
SEZ. This condition wasn't seen favorable for property development of SEZs.
11
CHAPTER 2
LITRATURE REVIEW
Layout of SEZ consist of processing and non-processing area which are developed
by Development Commissioner and respective authorities at zonal level
12
Formulating Board of Approval
The Board of Approval formulation is done with the function of Ministry of Commerce
having 19 Members as a prime factor and institutional bodies.
Its constitution is as follows
13
DUTIES, POWER AND FUNCTIONS OF BOARD
The Board shall have the duty to market and guarantee orderly development of SEZ
• The Board could delegate such power and functions because it could view as
suited one or a lot of DC for smooth and efficient functioning of respective
board including Development Commissioner
Central Govt. notified the SEZ Rules in February 2006 below the ability given below
Section fifty five SEZ Act, 2005
Proposal for putting in place of SEZ shall be created in kind A to involved DC and he
can send it to Board with necessary documents (Rule 3).
• The State Govt. shall forward the proposal received to the Board of Approval,
Ministry of Commerce, national capital (Rule 4)
- A SEZ for more than one product will have land area of 1 thousand hectares at
least or a lot of however not exceptional 5000 hectares. as long as just if the zone is
planned in small states and union territory including Jammu, Sikkim, Arunachal
Pradesh, Mizoram etc the land will be limited to 2 hundred hectares at least or a lot
of provided any that at five hundredth of shall be earmarked for developing the
process area.
14
If a SEZ is selected for a sector or for one or a lot of more than one product or
services will have to ensure the availability of space by going minimum hundred
hectares or combination of more than hundred.
• A SEZ assumed for the functioning with electronics kits, high technology,
machines, software and automation based work including information
technology and high tech designs accompanied by skilled manpower and
their effective uses.
• SEZ at no cost Trade shall have a section of forty hectares or a lot of.
Provided any that a trade and deposit Zone might also be discovered as a
part of a SEZ for multi-product.
If Special Economic Zone is having IT firm as a unit inside, few facilities must be
ensured:
• 24X7 electricity power having stable frequency inside the zone so that unit
can work as per international needs
15
FIG : APPROVAL MECHANISM (Central and state Government as developer)
• The Central Govt. shall within a period of thirty days of the communication
received by it under clause (a) of clause (b) of sub-section (9) of 3rd section.
• Granting the permission at the point when area is in the custody of developer in
Form B to the person or the State Govt. concerned in Form C, if the approval is
for providing infrastructural facilities in the SEZ, incorporating additional
conditions, if any specified by the Board while approving the proposal.
• In-principle approval in other cases in Form B1 to the person or the State Govt.
concerned, incorporating additional conditions, if any specified by the Board while
approving the proposals.
• Central Govt. after having all details shall notify the identified area as a SEZ.
(Rule 8)
16
• The Development Commissioner shall demarcate the area and issue
demarcation order under the provision of section 6, specifying the survey
numbers and boundaries of area of the SEZ as specified in the notification issued
under Rule 8. (Rule 11 : Processing & Non-Processing Area)
• The utilization of the goods imported or procured from domestic tariff area by the
developer shall be monitored by the Approval Committee. (Rule 15)
• Proposal of setting up of unit to be made to Development Commissioner in Form
F. (Rule 17). The Committee on Approval may deny or accept with modification
or reject, or accept a proposal within fifteen days of receipt (Rule 18). On
approval of a proposal under rules 18 & 19, DC shall issue a letter of approval in
Form G for constitution of a firm.(Rule 19)
• Each and all Special Economic Zones will be fully under the authorized control of
a Development Commissioner (Rule 20)
• Unit and Developer shall execute a Bond-cum-Legal Undertaking in Form H and
Form D respectively to meet the future obligation. (Rule 22)
• Firm or Unit situated inside SEZ must achieve the NFE in positive terms which
will be closely monitored from board as per LOA conditions for five years from the
commencement of production accordingly to the formula specified in Rule 53.
• Performance evaluation of the unit shall be observed and monitored by the
Approval Committee as per the rules and guidelines. In case the Approval
Committee comes to the conclusion that a Unit has not achieved positive Net
Foreign Exchange Earning or failed to abide by any of the term mentioned in the
LOA or Bond-cum- Legal Undertaking, without prejudice to the action that may be
taken under any other law for the time in being force, if it happens will cause the
violation of law under provision 105 of trade (foreign).
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DEVELOPMENT COMMISSIONER
The Govt. of India can assign charge to the Development Commissioner who is an
officer in Ministry of Commerce not below the rank of Deputy Secretary as an
institutional body for operations of SEZ
Every DC shall take all steps so as to act as development manager for units situated
inside SEZ, DC must act like a catalyst for speeding up the process of development
ensuring units and overall growth of respective SEZs
DC shall:
Every DC might entail such data from a Developer or Unit from time to time so as to
monitor the performance based upon what were mentioned in letter of Authority and
what is the current status, do we need to take any step now etc
SETTING UP OF A UNIT
A person who is setting up a firm for carrying out the approved functioning during
operations of SEZ
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• The committee on approval has the full authority to accept the proposal,
modify the request, deny the request based upon terms and condition since
the entrepreneur is bounded with those terms and conditions.
• Any person aggrieved by associate order of the approval committee might like
contact to the Board.
State governments can have a really vital role to play within the institution of SEZs.
Representative, who could be a person under respective department of concern
state who takes into consideration the proposal submitted by developer In order to
forward a letter of request to center (Ministry of Commerce) the states should satisfy
themselves that they're in a very position to produce basic inputs like water,
electricity, etc.
In all SEZs the statutory functions square measure controlled by the Govt.
Government conjointly controls the operation and maintenance performs within the
boundary of central government controlled SEZs.
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FUNCTIONS OF SEZ AUTHORITY
This section provides for functions and roles of SEZ authority that is what are the
major areas under which the authorities’ focuses and what their main responsibilities
are and how they formulate and achieve the same in day to day business routine
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FIG : HIERARCHY OF AGENNCIES AND THEIR FUNCTIONS
The authority of Special Economic Zone can take the investigation about any
industry as this is a part of their jobs being carried and during inspection if they feels
that there is a gap in what a firm or unit has been assigned Letter of Authorization
(LOA) by board or Net Foreign Exchange are not being positive its going negative or
a company is involved in unethical activity then corresponding action will be taken
against them as per rules and under certain cases seizure of the unit.
21
SERVICE TAX & LAWS
Now as per new amendment upfront exemption under Section 66B of Finance Act is
given when prescribed services received by SEZ unit or developer are used
exclusively for authorized operation.
The exemption shall be provided by way of refund of service tax paid on the import
of goods, after implementing GST if a firm takes goods from DTA they will pay the
IGST and then that will be reimbursed further.
The SEZ Unit or the Developer shall get Associate in taking approval by the
Approval Committee of the list of the services as measure needed for the approved
operations on that the SEZ Unit or Developer would like to assert exemption from
service tax.
The refund of service tax on the specified services that are not exclusively used for
authorized operation or the specified services on which exemption is admissible but
not claimed shall be allowed.
The service tax paid on the desired services that are common to the licensed
operation in Associate in functioning SEZ and therefore the operation in domestic
tariff space shall be distributed among the SEZ Unit or the developer and therefore
the DTA units within the manner as prescribed in Rule seven of the Central Credit
Rules, 2004 The SEZ Unit or the Developer shall submit only 1 claim of refund
underneath this notification for each quarter.
Land Laws Earlier lands were used to be acquired by government under the name of
Public Purpose for itself or private player also under Land Acquisition Act, 1894.
22
There was lot of agitation for land acquisition and improper, insufficient
compensation for it.
To avoid this conflict, government came up with some rehabilitation & resettlement
policies but it did not turn up in any binding law. Finally in September 2013,
parliament passed a comprehensive law on land acquisition.
ENVIRONMENT LAWS
All State Pollution Control Board should adopt an integrated system for granting
environmental clearance.
• DC of SEZs to permit the officials of the SPCB to carry out the surprise
inspections.
• Unit Approval Committee in the SEZ to include a representative of the SPCB
for providing information related to regulatory requirements under the
Environmental laws and to monitor the progress of grant of such clearances.
• Central Pollution Control Board informed that 13 SPCBs are granting
integrated clearance. As per the Gujarat SPCB mentioned that there are 70
23
SEZs in their states and board is granting intergraded clearances for all the
industries in their state. Clearances for green industries are given for a period
of 10 years.
For orange industries it is 7 years and for red industries it is 5 years. Further,
he also informed that for Kandla SEZ, the Regional officer has been deputed
for granting such integrated clearances.
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CHAPTER 3
ANALYSIS AND FINDINGS
Every developer and businessperson shall be entitled for exemptions from paying
Customs, Excise, Service tax, Sales tax.
The central govt. could when due appropriation created by parliament by law during
this behalf create to each authority by means of grants and loans such sums of cash
as that govt. might imagine fir for being used for the needs of this act
A firm situated under Special Economic Zone gets the 100% relaxation for first 10
years of operation so as it can sustain in the competitive market can learn various
aspects to which they are not familiar with and then for next 5 years they gets the
relaxation of 50% under taxes over profits after this they are free to implement the
50% of profit under investment allowance
Bank having associate degree Offshore Banking Unit during a SEZ or being a Unit of
a world money Service Centre can get deduction of 100% of financial gain 5
consecutive years and five hundredth of financial gain for five consecutive years.
Central Excise product procured by a Unit or Developer, on that Central Excise Duty
exemption has been availed however with none availment of export entitlements
shall be allowed admission into the Special Economic Zone on the premise of ARE-1
(Applicable for Removable Excisable Goods).
25
If a firm is procuring raw material or semi-finished Goods from Domestic Tariff Area
to Special Economic Zone shall be exempt from payment of any Central Excise duty
and taxes as it will be a incentive to firm
The perk given to a firm situated under SEZ are having reason that is to
provide them a source of motivation for joining SEZ and functioning inside in
order to capture more investment from domestic and international market.
Exemption of Duty and taxes i.e. a developer can take the products as goods
and services for the process of setting up and functioning a unit under SEZ,
the expenses occurred in the process of maintaining a unit is also exempted
out as logically SEZ is a region outside the country
An exemption of 100% on taxes is offered to a firm situated under SEZ for
initial five years of operation and for next 5 years unit received the 50%
exemption on taxes as only 50% of profits are brought in the taxation criteria
and then for next additional five years Investment allowances are offered for
setting up new technology and machines for the firm
Single window clearance with administrative setup for both Central and State
level approvals
Less monitoring of exports and more emphasis on self-declaration
Storing facilities are offered at zonal and at the site of loading for storing and
keeping goods
A unit which has been declared sick by the appropriate authority shall submit
a revival package through DC to Board for consideration and the Board shall
consider the extension in the period for fulfillment of Positive Net Foreign
Exchange for a further period up to a maximum of five years at the prevalent
times. If any new unit willing to take over all the assets and liability of a sick
unit, it will be considered by the Board. (Rule 72)
If a unit situated under SEZ want to move out of the zone and wanted to dissolve
them it can be done with the combined approval of Board chaired by Development
26
Commissioner and respective unit must ensure to pay all the duties and taxes on
imported goods comprising raw material, parts, semi-finished goods, machines,
stocks etc as per the (Sec 74).
THREATS TO SEZ
Though we have wide range of positive aspects under the effect of various
exemptions, promotional activities and channels to accommodate an entrepreneur
we keep on facing various challenges and unethical activities which needs to be
addressed in a dedicated and strategic manner so that there is an environment of
fear for unwanted activities.
These activities may occur through multiple ways including some of below that I
have noticed and learned through the guidance of officers posted in Noida Special
Economic Zone
Money Laundering
Declaration with less values and hence less Duties in DTA sales
Miss declaration of Goods
Positive aspects are being utilized as negative one i.e. playing with paper
work and making information in favors of exporter to reduce liabilities
towards government authorities.
Paper work i.e. self declaration
27
Various firms tries to mold the rules and laws in their favor by wrong declaration over
papers while physically goods and services are different than what mentioned, role
of appraiser is very crucial in the evaluation of values and declaration of documents.
If I take the example of a threats that I have heard recently about – A unit situated
under Noida SEZ was operating under precious metal category which has driven the
export of gold metal by importing gold as a duty free element being in SEZ and sold
the same to its own company situated abroad with little paper work.
They were actually exporting the waste material and bricks by plating them at a layer
of two micron which was not detectable due to certain technical obligations from
machines and self-declaration were treated as authorized means of export with no
examinations, but SEZ authorities received the information regarding same and they
acted to the investigation regarding same and hence it was proven as a threat to the
functioning of SEZ resulted in the seizure of unit and respective penal actions were
taken against the company.
So, as far as rules and regulations are being utilized as a promotional and key
aspects of operating a firm and taking out desired profits and output out of it, that is
perfectly fine and a standard procedure.
But if someone as a unit tries to play with protocols and rules of Special Economic
Zone that will lead to the penal action and seizure of the company.
Being a part of so big organizational setup SEZs act as a key element in generating
revenue and foreign exchange for India, with this we can lead to lay down our future
as a country and yes it plays a vital role in individual and overall grown of a nation
which can’t be denied at all.
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CHAPTER 4
CONCLUSION
Laws governing to SEZs i.e. SEZ rules of 2006 act as a constitution for functioning
and operations of Special Economic Zone which guides an entrepreneur about dos
and don’ts of their respective domains and Development Commissioner act as an
institutional body for overall monitoring of functions.
In current scenario we can observe a drastic improvement and there are more scope
to improvements under IT industry which is contributing at maximum level of Net
Foreign Exchange in relation to other industries, with few more steps and initiatives
we can go more beyond what we are, private SEZs are major steps towards IT
industries for revolution.
Sales established at domestic level (DTA sales) from a unit situated under SEZ are
measured and treated as if the products measure being foreign is subject to payment
of applicable customs duties.
SEZs play a key role in fast economic development of a rustic within the early
Nineties, it helped China and there have been hopes that the institution in India of
comparable export-processing zones might supply similar advantages- provided,
however, that the zones offered engaging enough concessions.
29
BENIFITS TO UNIT FUNCTIONING INSIDE SEZ
100% benefits of not paying any taxes along with less legal obligations for
initial five years, 50% for consecutive additional five years and 50% profit will be
non- taxable as a promotion activity for businesses
• Units under SEZ/Developers eligible for exemption from payment of Service tax
• Supplier from DTA to SEZ considered as physical exports.
• DTA sales are allowed with condition on payment of full duties to Govt.
• No often and routine observation and examination of export import shipments
by SEZ customs.
• Import on self declaration basis.
• One stop and Single window clearance for all Central and State level of
approvals.
• 100% FDI investment permitted through Automatic route for manufacturing SEZ
units.
• SEZ developers are allowed to improve/procure from DTA specified goods from
development of SEZ duty free.
The Special Economic Zones (SEZs) Policy was declared by the Govt. of India in
April 2000. The policy meant to form SEZs associate degree engine for economic
process, supported by providing quality infrastructure and complemented by a pretty
financial offers in terms of incentives from state as well as central government with
as minimum as possible regulations comprising combined approach from more than
one department.
India is SEZ enabled from Nov 2000 under which we have provided multiple type of
financial benefits and exemptions in order to promote export and to create the
environment which is economy friendly and have major contribution on macro level
of economy.
This involves multiple departments at a single platform and all are operating as per
the rules and guidelines of SEZ rules which came for existence in year 2006
comprising simplification of rules and a platform for one stop solution and comprising
multiple segments of central as well as state government of concern state.
30
The SEZ Rules give for various minimum and necessities for various categories of
SEZs. The act has fifty six sections, containing legal provisions for the institution of
SEZs, constitution of the Board of Approval, appointment of development
commissioners, provisions for dispute settlement, etc. once the SEZ Act and Rules
were notified, amendments to the SEZ rules were notified in 2006 and once more in
2007.
According to SEZ Act there's a revenue loss due to the varied tax exemptions and
incentives. SEZs have their own adjudicating, implementing and administering
agencies, thus absolute non-interference by the state.
There will be 100% tax exemption and relaxation from strict labor laws, they're going
to not have any burden to adjust to any style of minimum obligation to export apart
from bound quite offences the no investigation or review are often distributed in any
of the SEZs while not previous approval from the Development commissioner.
31
A developer has the full authority to develop the public related spaces
comprising recreational area, ground, environmental friendly activities like
gardening, supermarket, park and play grounds for different activities, pools,
clubs etc without any problem.
Exemptions under Income tax payment on firm income comprising to be a
incentives for developers
100 % Exemption under import of goods and services for running the unit
Foreign Direct Investment of ten percent is granted and applicable for all
processing and manufacturing activities carried in unit situated under SEZ
Less documents are required as it reduces the complexity and increase
efficiency via simplifying all the steps involved in procedures of customs,
clearance and granting also the resolution of conflicts between partners and
others.
Organized and single window clearance for all the platforms and it emphasis
on self-declaration at all the stages involved which smoothens the process to
simplify.
Building and development of both international and domestic air freight and
services for small transit time and speedy process of export by smoothening
the export import facilities in functioning
Comprises multiple banks for financial freedom to a unit and to support the
new concepts and ideas of an entrepreneur by assigning credit and acting as
a medium to accept payment internationally
A magnificent and developed city as a unit having multiple professional and
personal advantages to a firm and an entrepreneur which motivates them for
bringing out more money for the nation and its people, additional to skills of
manpower, generating experts of various areas who takes certain steps and
initiatives for the development and growth of nation
• All the networks to commute and move freight via generating links between
roads, air, public transport system as per need – if I consider the latest
example then Noida Metro is connecting Special Economic Zone of Noida
from inner part of SEZ for peoples and industrial benefits
32
SEZ comprises of environment which is ecofriendly and have setup of
complete drain system including sewage lines for the outlet of unwanted
material to the respective desired place.
Clearance and approval of documents for exports and sales at zonal level i.e.
doorstep clearance for goods and services and in certain cases SEZ
authorities takes the responsibility to carry the precious goods like gems and
jewelry to handover at airport to respective authorities under Central
warehouse Corporation
SEZ authorities ensure that people working inside Special Economic Zone
receives all the services like medical facilities, water availability, lunch and
dinner arrangements by setting up few restaurants, food stations, coffee/tea
houses inside zone and smooth operations of them on commercial criteria
If SEZs are functioning in an area then there must be the generation of skilled,
semiskilled, unskilled jobs which will deploy the manpower at respective levels
and local area around SEZ will also develop along with inside development of
SEZ which ensures Employment generation and improvement of standard of
living
SEZ works on overall development of an area situated around Special
Economic Zone
Since Special Economic Zones offers the incentives and relaxation so foreign
industries are attracted towards the SEZ which brings them under an environment
where they act as a competitor and skill enhancer as other firms will also adopt
those process improvement based upon latest technology and inventions which
ultimately enhances and develops the firms and industries situated in relation with.
The rules and regulations as per the SEZ acts 2006 and its significant
implementation by Development Commissioner is acting as a economic reforms
and these must be implemented at a more broader level by taking more measures
to threats involved at multiple stages.
33
automation industry setup which will rise a long run by enhancing peoples
capabilities and their individual skills which will ultimately make India as a leader
and much better and preferred nation for operating a business.
34
REFERENCES & BIBILIOGRAPHY
1. THE SPECIAL ECONOMIC ZONES Act with the SEZ rules, 2006, by
commercial law publisher
2. http://sezindia.nic.in/cms/introduction
3. https://www.nsez.gov.in/NSEZ
4. http://commerce.gov.in
5. Reserve Bank of India: Evolution of SEZs and Some Issues; The Indian Experience, A
Report, dated 22.9.2009
7. Time to Review the Special Economic Zone Act, Economic And Political Weekly
dated 04.04.2015
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