The Hindu Business Line : AP to introduce SEZ Bill in ongoing session

WITH a view to bringing in more transparency in public policy and reducing fiscal deficit, the Andhra Pradesh Cabinet has decided to amend the AP Fiscal Responsibility and Budget Management Act, 2005.

The Cabinet has also decided to introduce a Bill on Special Economic Zone (SEZ) in the ongoing Assembly session. The Bill would offer benefits to the industries, setting up their units in such zones.

The Fiscal Responsibility Act required the Government to present statements of fiscal policy, along with the Budget, pertaining to the Macro Economic Framework, the Medium Term Fiscal Policy, and the Fiscal Policy Strategy.

One of the proposed Amendments to this Act would to make it mandatory for the Government to bring in special reports, giving details of number of employees in the public sector and aided institutions, their salaries and pensions.

The Amendments also aimed at reducing the fiscal deficit to three of GSDP (Gross State Domestic Product) by 2008-09 instead of 2009-10, a Government release said.

The Amendments, which were being taken up adhering to the suggestions of the Union Government, would come into force retrospectively from June 3, 2005. The decision had been taken at the Cabinet meeting held on Saturday.

Besides exempting Stamp Duty and registration fee on transfer of land, loan agreements, credit deeds and mortgages, the SEZ Bill sought to extend exemptions on Sales Tax, Purchase Tax and other taxes and cess payable on sales and transactions.

The inputs made to the units from domestic traffic tariff area had also been exempted from Sales Tax and other taxes under the State laws. With a view to offering flexible labour policy in the zone, certain labour laws enactments had also been amended.

The Cabinet resolved to extend the lease period on 200 acres of land given to ICICI Knowledge Park to 33 years, with an automatic renewal of 18 years.

In another decision, the Cabinet decided to change the name of TCS (a division of Tata Sons Ltd) to Tata Consultancy Services Ltd (TCSL) in the agreement with the company with regard to allocation of land for its facility at Madhapur.