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| The SEZ policy of the state government incorporating these sops is slated to come up before cabinet for approval on August 2.
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| The policy states that industrial units within the SEZs will be exempted from all state and local taxes and levies, including sales tax, contract tax, purchase tax, VAT, entry tax, entertainment tax, luxury tax, octroi, cess, etc. in respect of transactions made between the developer/units within the SEZ, and also in respect of supply of goods and services from the domestic tariff area to the SEZ developer/units.
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| If due to tax system constraints, it is not possible to grant direct exemption to the transactions, the state taxes paid would be fully reimbursed, it pointed out.
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| Meanwhile, the state government intends to request the Union commerce ministry to evolve a consensus at the national level and to obtain the concurrence of the finance ministry in respect of the tax concessions for the SEZs.
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| Among other things, the policy prescribes for amendment of state entry tax Act to allow exemption of entry tax in respect of goods purchased by the SEZ units.
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| This apart, it also promises concession of stamp duty on transfer of land from the government to the SEZ developer and from developer to the units/establishments within the SEZ.
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| On the power front, the new policy proposes to exempt electricity duty on power consumed (both purchased and self generated) in development, operation of the SEZ by the developer and also for production of goods and services for export by the units/establishments within the SEZ.
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| However, no such exemption shall be allowed for the goods sold in the domestic tariff area, it clarified.
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| Besides, subject to the approval of the Orissa Electricity Regulatory Commission (OERC), the state government will provide the SEZ developer with a license on exclusive basis for generation and distribution of power within the SEZ.
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| The SEZ developer will also have freedom to fix power tariff for the consumers within the area.
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| The policy states that in the initial phase, the SEZ developer may purchase bulk power from Gridco /NTPC or any other Independent Power Producer (IPP) for meeting the power requirements of the SEZ with wheeling arrangements with Gridco.
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| In later phase, the SEZ developer may setup IPP either within the SEZ or at pithead and have wheeling arrangements with GRIDCO for meeting the SEZ power requirements.
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| Similarly, the units in SEZ will be permitted to setup Captive Power Plants which will be allowed to establish grid connectivity with Gridco for drawal of power in emergency, subject to their entering into a separate agreement with Gridco on mutually acceptable terms.
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| The policy also allows third party sale of power by the SEZ developer/SEZ units directly to the new consumers within the state or any consumer outside the state without any restrictions. |
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