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ICRIER evaluating SEZ policy: Govt

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Press Trust of India New Delhi
Last Updated : Jul 30 2014 | 4:58 PM IST
The government has assigned think-tank ICRIER to review and evaluate the special economic zone policy, Parliament was informed today.
The findings of the reports would be analysed once the final report is submitted, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha.
"The government assigned to Indian Council for Research on International Economic Relations (ICRIER) to conduct a study on revisiting SEZs," she said.
So far, the government has approved 565 SEZ proposals out of which 388 zones have been notified and only 185 are exporting.
SEZ has emerged as a major exporting and investment hub started losing sheen after imposition of minimum alternate tax (MAT) and dividend distribution tax (DDT) in 2011.
Replying to another question on SEZ, she said that the Board of Approval for SEZs has granted more time to as many as 109 developers during April 2012 and June 2014 to execute their projects.

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Industry had asked the government to roll-back the MAT on SEZs. They had said that the levy has suppressed the potential of these zones as a tool to promote exports and generate employment.
In 2011, government had imposed 18.5 per cent MAT on book profits of special economic zone developers and units.
Although government last year announced an incentive package to revive these zones, several developers have surrendered their projects as imposition of taxes has eliminated the incentives for setting up SEZs and units in those zones.
SEZs contribute about one-third to the country's total exports. They provide employment to about 15 lakh people.
Exports from these zones stood at Rs 4.94 lakh crore in 2013-14.
While presenting the Budget 2014-2015, Finance Minister Arun Jaitley had said that the government is committed to revive SEZs and make them effective instruments of industrial production, economic growth, export promotion and employment generation.
Replying to another question, the minister said the negotiations for Indian-Israel free trade agreement are under way.
"India is aiming to achieve a mutually beneficial and balanced FTA with Israel," she added.
No deadline has been set for concluding the pact.

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First Published: Jul 30 2014 | 4:58 PM IST

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