The Hindu Business Line : States told to form inter-ministerial body for special economic zones

“Effective implementation of the single window mechanism by both the Central and State government agencies would be a key factor for the faster development of the SEZs in the country.”

G. Srinivasan

New Delhi, Sept. 11 The Commerce Ministry is keen on implementing a single window mechanism for (SEZ (special economic zone) developers and urged the State governments to set up an inter-ministerial body to ensure effective co-operation.

Official sources told Business Line here that at a meeting with the representatives of all State governments held here where representatives from seven States participated, it was decided to constitute an inter-ministerial body wh ich would provide all clearances relating to the SEZ developers in a time-bound manner.

This decision is crucial because any delay in grant of approval to the developer would lead to delay in the implementation of the SEZ scheme.

It was noted that while some of the State governments have put in place the single window mechanism for grant of approval for the SEZ developers such as Gujarat SEZ Development Authority under the chairmanship of the State Chief Secretary, others should also put the SEZ Act in place and prescribe the mechanism for providing clearances to the SEZ developers at one place.

stump duty Exemption

The meeting also took note of the need for providing exemption from stamp duty as well as value added tax both for the SEZ developers and the SEZ units.

In respect of SEZ units, a single window mechanism is provided under Rule 17 of the SEZ Rules, wherein all clearances pertaining to the SEZ units such as approval for setting up a unit in the SEZ, allotment of Importer Exporter Code number, registration-cum-membership certificate, permission for water connection, small-scale industry registration, registration with Central Pollution Control Board, power connection, building approval plan, sales tax registration, and approval from inspectorate of factories are required to begin by the Unit Approval Committee under the Chairmanship of the Development Commissioner.

This committee has the representative of Central as well as State governments and it was emphasised that State governments must depute their representative to the UAC and all state-level clearances must be provided in the UAC through the representative of the state government present in the meeting.

The Export Promotion Council for EOUs & SEZ Units Director-General, Mr L.B. Singhal, told Business Line that “the emphasis should now be on the faster implementation of the SEZ scheme by grant of hassles-free approval to t he SEZ units and the SEZ developers. Effective implementation of the single window mechanism by both the Central and State government agencies would be a key factor for the faster development of the SEZs in the country.”

He said single window clearance for the SEZ unit under the chairmanship of the Development Commissioner should be made effective, as at present even the SEZ units have to go to the State government for obtaining various approvals.

representative

States should also nominate their representative in the UAC to ensure their regular participation with a mandate to authorise all clearances relating to the state governments.

They in turn could consult the concerned departments of the State but interaction of the units should be only with the UAC of the SEZ.

Mr Singhal also pointed out that while exemption from indirect levies is provided by the Centre, in respect of indirect levies by the State government especially stamp duty, VAT, registration fee, a mechanism needs to be in place.

He said while the Andhra Pradesh Government provides exemption from VAT for the SEZ units but does not provide exemption for SEZ developers, other States provide refund of VAT instead of providing exemption from VAT.

A uniform procedure in this regard by all States would help both units and developers in order to realise the full potentialof the SEZ scheme for the economy, employment creation and dedicated infrastructure development, he added.

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