Four SEZs get green signal

The Commerce and Industry Ministry has granted in-principle approval to four more Special Economic Zones (SEZs) including one at Noida in Uttar Pradesh and three in Gujarat. The board of approval granted clearance to these zones earlier this month.

The SEZ at Noida would be developed by the Noida authority and would be in addition to an existing SEZ for handicrafts, a senior government official said.

The ministry also cleared three SEZs in Gujarat "" one for apparel at village Vanj in Surat district, a multi-product SEZ in the Hazira area in Surat district and a SEZ for gems and jewellery at Icchapor also in the Surat district.

The SEZ for apparel at village Vanj is being developed by the Gujarat Industrial Development Corporation over an area of 55 hectares at an estimated investment of Rs 61 crore. The ministry has sought project details for the other two SEZs in the state from the state government, officials said.

The Commerce and Industry Ministry is planning to introduce an SEZ Bill in the ensuing Winter Session of Parliament. The ministry has already circulated the draft Bill for comments and will soon send the Bill to the finance and law ministry for approval before tabling it in the Cabinet. The proposed SEZ Bill plans to double tax holidays for units in SEZs for a total of 20 years.

Units will enjoy a 100 per cent income tax holiday for the first five years followed by 50 per cent tax exemption for the next five years and 100 per cent exemption on the ploughed back profits for the next 10 years.

The present structure allows 100 per cent income tax holidays for five years followed by 50 per cent exemption for another two years, which is further extendable for another three years.

Govt grants

• One SEZ will be set up at at Noida and three in Gujarat
• The Commerce and Industry Ministry is planning to introduce an SEZ Bill in the ensuing Winter Session of Parliament
• The proposed SEZ Bill plans to double tax holidays for units in SEZs for a total of 20 years