New SEZ proposals to be taken up on December 15

New SEZ proposals to be taken up on December 15
The Financial Express, November 25, 2009, Page 11

Press Trust of India, New Delhi

While the revision of guidelines for setting up special economic zones is still pending, the government will continue to approve proposals for new SEZs, which would be developed in an environmentally-sustainable way and will consider fresh applications for SEZs on December 15.

“The Board of Approval of the SEZs, to consider proposals for setting up of the tax-free enclaves and other requests, will be held on December 15,” a government official said.

The 19-member, inter-ministerial BoA is chaired by commerce secretary Rahul Khullar.

The government is yet to give a final shape to the new SEZ norms for which it has invited public comments. The broad areas on which comments have been invited include site identification, land acquisition, development plans, role of state governments and physical infrastructure. “based on the experience gained so far, the formulation of certain broad guidelines to govern the development of SEZs has been considered appropriate to ensure an environmentally-sustainable, well planned development of the SEZs,” the official said.

The draft guideline says the cultivable land should be considered only if other adequate land is not available.

“The first preference should be for the acquisition of waste and barren land, followed by single crop land and double crop land, necessary to meet the contiguity requirements,” it said. The draft guidelines say that the site for an SEZ shall have the potential for development as a self-contained entity along with environmental sustainability.

Currently, the government has formally approved the setting up of 578 SEZs, out of which 340 have been notified. SEZs have provided employment to 4.18 lakh people and exports from the SEZs during the first two quarters of the current fiscal are estimated at about Rs 89,750 crore.