The Commerce Ministry has called for suggestions from all stakeholders to comprehensively address the policy framework and operational issues of Special Economic Zones (SEZ).

This, the Ministry said, is to accelerate the growth of SEZs. Suggestions may be sent in the linked format at the official Web site for SEZ (www.sezindia.nic.in), it added.

According to official sources, the Government has decided to eject non-serious players from SEZ. They said the Government does not want any developer sitting idle on the approvals. It wants the developers to either start work on the ground faster or surrender their applications and apply afresh when they are ready.

However, it understands that the imposition of the Minimum Alternate Tax and Dividend Distribution Tax on SEZs as well as the economic slowdown have hit the development .

Also, the Direct Taxes Code proposes to withdraw profit-linked incentives for SEZs.

In short span of about five years since the SEZs Act and Rules were notified in February 2006, of the 585 SEZs approved, 381 have been notified of which 143 SEZs are already exporting, the Ministry said.

SEZs now export in excess of Rs 3,00,000 crore accounting for over 28 per cent of the country's total exports, it said, adding that with an investment of Rs 2,00,000 crore, SEZs today provide direct employment to over 7,00,000 persons.

> arun.s@thehindu.co.in

Related Topics