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G. Srinivasan

On sales tax and other levies, there would be complete exemption on payment of stamp duty and registration fees on transfer of land meant for industrial use in SEZ area.

NEW DELHI, July 26

GUJARAT has come out with its own policy on the dispensations which it would accord to promote the development of Special Economic Zones, doing away with several irksome features that impede the core competence of the SEZ units.

The State Government's Industries and Mines Department, which recently unveiled its policy on SEZ just prior to the dissolution of the State Assembly, said the existing Free Trade Zone in Kandla and the Surat Export Processing Zone have been converted into SEZs.

As the State Governments are required under the scheme to offer specified facilities and concessions for promotion of units in SEZs, the Gujarat Government has listed the various supportive incentives it offers for units in SEZs. Accordingly, the SEZs would be managed by the designated Development Commissioner (DC) and the zone declared as Industrial Township (Notified Area).

The State Government has delegated the powers of the Labour Commissioner to the DC to function as Registration Officer, Conciliation Officer as well as Inspector under various labour laws to provide single window service. The units in SEZ would be required to file annually Consolidated Annual Report (CAR) to the DC.

All industrial units and other establishments in SEZ would be declared as "public utility service'' under the provisions of the Industrial Disputes Act. For inspections relating to workers' health and safety, units would be permitted for obtaining inspection reports from accredited agencies as might be notified by the State Government.

On sales tax and other levies, there would be complete exemption on payment of stamp duty and registration fees on transfer of land meant for industrial use in SEZ area, as also complete exemption on payment of stamp duty and registration fee for loan agreements, credit deeds, mortgages pertaining to SEZ units or which will be executed within the SEZ area.

Inputs (goods and services) made to SEZ units from domestic tariff area would be exempt from sales tax and other state taxes. Any sales from SEZ to DTA would be deemed import and import duty would be applicable as per GoI policy. Sales tax would be applicable to SEZ goods as applicable to other imported goods.

It is also clarified that due to tax system constraints, if it is not possible to grant direct exemption to any transactions, such payment of State taxes would be reimbursed to the SEZ units. The SEZ developer and SEZ units would be eligible to avail exemptions under sales tax and other local levies.

The SEZ authority would ensure continuous and quality power supply to SEZ units. SEZ developer would be permitted for arrangement of power through establishment of power projects as independent power producer as well as transmission and distribution of power with SEZ developer approving power connections and carrying out billing of units in the SEZ.

Units in SEZ should be exempt from electricity duty for ten years period from the date of production or rendering of service and they would be granted automatic approval to set up captive power plant.

Application for site clearance, no objection certificate and consent order required from GPCB (Gujarat Pollution Control Board) for units within SEZ under different Acts except for the industry/ activities which require clearance from Ministry of Environment and Forests, GoI would be accepted by the DC of the SEZ.

GPCB has declared 80 industries, which are exempted from the requirement of obtaining NOC. These are, however, restricted to small-scale industrial units only, though the list of industries would be extended to medium and large industries. The State Government should take required suitable steps within the SEZs for the maintenance of law and order.

When contacted about the far-reaching SEZ policy of the State of Gujarat, the officials in the Commerce Ministry said that the concept of SEZ as spelt out by the Union Commerce and Industry Minister, Mr Murasoli Maran, in March 2000 would gain further momentum with the set of spurs announced by Gujarat.

Official sources said that States such as Madhya Pradesh, Andhra Pradesh and Orissa too are evolving a package of measures for the exclusive benefits of SEZs in their States and all these would go a long way in converting the concept of converting the SEZ into a beneficial proposition for pushing the country's exports.

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