Singapore is likely to zero in on Andhra Pradesh for setting up a multi-product special economic zone in India. The zone is expected to be developed by leading Singapore realty major Ascendas, which has set up many such zones globally. |
Senior government officials told Business Standard that the Singapore government was in talks with the state government for a 5,000-acre plot of land for setting up the zone. |
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"We are expecting to receive a formal proposal for setting up the zone (SEZ) soon," an official said. This would be the first time that Ascendas would build such a zone in India as a developer. It is a co-developer in the Mahindra & Mahindra zone in Tamil Nadu, he added. |
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During the recent meeting to review the working of the Comprehensive Economic Cooperation Agreement Singapore had indicated it was keen to set up a large SEZ in India. |
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New Delhi had made a strong pitch to Singapore to enter SEZs in the country. Both countries are expected to hold their next review meeting in July, in Singapore. |
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Meanwhile, the commerce ministry has sought the comments of the law ministry on the proposal to empower the board of approval to relax the area norms for SEZs. |
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Officials said the commerce and revenue department had agreed not to implement the rules on export of service on SEZs. |
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"Some of the rules governing export of services, as mandated by the revenue department are not easy to implement in SEZs particularly requirements that the service should have been sought from overseas and consumed overseas," an official said, adding that there was consensus on the import of service rules being applicable to SEZs. |
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The SEZ rules were being amended to clearly state that mere transfer of an existing unit from the domestic tariff area into an SEZ would not qualify for tax breaks. |
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