Having enacted Punjab Special Economic Zones (SEZs) Bill, 2009, to boost industrial development in the state, Punjab has sought Centre’s help to reduce the minimum land requirement for SEZ projects in the state and allow SEZs as per viability of the project.
According to state government officials, the proposed move will not only boost the existing SEZs projects but would also help in attracting new investment in the state.
State Industries & Commerce Minister Manoranjan Kalia said, “In view of scarcity of land and its high value in Punjab, we have sought Centre’s help to relax the norms from minimum land requirement of 10 hectares, 40 hectares, 100 hectares and 1,000 hectares for IT, Warehousing, product-specific and multi-product SEZs, respectively.”
Earlier, the state Assembly passed the Punjab SEZs Bill, 2009, on Saturday making Punjab the sixth state in the country after Haryana, Gujarat, West Bengal, Maharashtra and Madhya Pradesh to enact the SEZ Act.
The Punjab Act has been finalised after studying the Acts of different states and it offers higher concessions and facilities to the investors.
Commenting upon salient features of the Act he added, “The Punjab Act provides for exemption for payment of any tax, duty, fee, cess or any other levy whereas acts of Gujarat and Maharashtra specify exemption from sales tax, value-added tax (VAT), motor spirit tax, luxury tax, entertainment tax, purchase tax and other state taxes. These exemptions under the Punjab Act will be on export or import of goods in SEZ, inter unit transaction in SEZ, movement of goods from/in SEZ for value addition and on any service to SEZ developer or unit. All SEZ units will also be given public utility status.”
Further, the Punjab Act provides for exemption from stamp duty, registration fee and social security cess on purchase of land for SEZ and on first transfer or lease of immovable property within SEZ for industrial, commercial or residential purposes whereas Acts of Gujarat and Maharashtra provide for only exemption from stamp duty and registration and that too on the land meant for industrial use in SEZ.
The allocation and transfer of land within the SEZ can be done by way of sale or lease as per the Punjab Act.
Besides, permission for generation of electricity in or outside SEZ for consumption of units has been allowed in the Punjab Act, whereas in other states, generation of electricity is allowed only within the SEZ.
There will be no electricity duty on generation, transmission, distribution and consumption of electricity within the SEZ. Also, there will be single tier approval process instead of two tier approval process — Project Evaluation committee and Project Approval committee — in the Haryana Act.
A project approval committee headed by the chief secretary and comprising concerned administrative secretaries will consider all the SEZs approvals.
Officials said the Act would give a boost to 18 SEZs, which are to be developed in the state with a proposed investment of Rs 10,182 crore. They added that Punjab would press the central government for reducing the requirement of area for the SEZ.
