Govt to make short work of SEZ nods

Govt to make short work of SEZ nods
The Economic Times, July 29, 2009, Page 11

Zonal Authorities May Get More Activities To Okay

With more zonal sway, plight of SEZ developers who move the Board of Approval for every little permit may end

Amiti Sen NEW DELHI

SETTING up ancillary services such as effluent treatment plants and Wi-Max facilities inside a notified special economic zone (SEZ) may be shifted from under the purview of the central board to regional authorities concerned, according to a government move aimed at faster completion of such projects.

The proposal, mooted by the commerce department, is up for review by the SEZ Board of Approval (BoA), a panel comprising officials from various government ministries that gives permission to such tax-free industrial zones.

A department official pointed out that approaching BoA, which is bogged down with loads of such applications from across the country, is a time-consuming process that slows down the implementation of these projects.

“It increases the BoA’s work load too,” the official said asking not to be named.

Currently, activities inside the notified area for building roads, water supply lines and treatment plants, setting up electricity, gas and PNG distribution networks, boundary walls and telecom and other communication facilities don’t need BoA nod.

The latest proposal seeks to include rail-heads for steel and power, police posts, security offices, fire stations, fire protection systems, play zones, bus bays, effluent treatment plants and pipelines and Wi-Fi, Wi-Max services in that list, said the official.

“The reason it takes several months for SEZ projects to get implemented after being approved is because the developer has to approach the BoA for every step,” the official added.

To cut the work load, the government is also looking at setting up a sub-committee of the BoA to look at approval applications for authorised activities in zones. Both proposals will be taken up at the BoA meeting slated for August 11.

“If a sub-committee is formed to share the workload with the BoA, it will definitely help in expediting all clearances,” the official said.

The BoA includes senior officials from key ministries such as commerce, finance and home, its meetings are spaced out. The frequency of meetings is determined more by the number of new proposals that are to be cleared rather than the authorised activities to be given a go-ahead.

Of course, next month’s meeting will approve fresh SEZ proposals.

The last BOA held on 19 June had approved two fresh proposals, ratified extension of time to 23 developers, including Satyam Computer Services, for implementing tax-free enclaves.

Till date, 576 formal approvals have been granted for setting up of SEZs, of which 319 have been notified, as per commerce ministry records.

QUICK FIX

PRESENT APPROVAL PROCESS

First stage: Gives in-principal clearance to projects that do not possess land
Second stage: Gives formal approval to projects after land is acquired
Third stage: Notifies SEZs after the zones get all required clearances at the state level
Fourth stage: Approves authorised activities in the zones

THE PLAN
List of activities for which developers get approvals from zonal authorities may be expanded
These activities include setting up play zones, bus bays, effluent treatment plants and pipelines and wi-fi, wi-max services
Govt is also looking at setting up a BoA subcommittee to look at approval applications for authorised activities in zones