Checklist drawn up for SEZ players

In order to check entry of fly-by-night operators in special economic zones, the government has finalised a checklist of around 17 parameters, including profit and loss accounts of the last three years, details of tax evasion, if any, and sources of funds, for companies that make applications for setting up such zones.

The move has been prompted by the fact that of the 86 special economic zone (SEZ) proposals that had been cleared by the Board of Approval, only five zones have been notified.

Of the 111 SEZ proposals placed before the board, only 35 cases were cleared and 18 of these were cleared in principle. Around 70 proposals were deferred.

"We have recently finalised the parameters that a company needs to clear before its proposal is given the nod by the Board of Approval. We want to ensure that only serious players that have the requisite capability come forward to set up SEZs," a government official said.

A company that seeks to set up an SEZ will first have to make a proposal before the Board of Approval. It will then have to fulfil the checklist before its proposal is considered by the board.