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SEZ Bill to be introduced in AP assembly today

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Our Regional Bureau Hyderabad
The Andhra Pradesh government would introduce a Bill in the state Assembly tomorrow to provide a single window system of clearances and other necessities required for units in special economic zones (SEZs) along with a flexible labour policy.
 
According to the statement of objects and reasons of the proposed Bill, certain labour law enactments have been amended to implement a flexible labour policy in these zones. The Bill enables the government to appoint a development commissioner vested with powers, duties and functions of the commissioner of labour.
 
"In order to achieve rapid economic growth to attract investments and to ensure systematic and integrated development of the industry in the state, it was considered necessary to enact a law for the establishment of SEZs in the state," the government said in the statement of objects and reasons of the proposed Bill.
 
The state government has also proposed to grant various fiscal benefits to attract industrialists and entrepreneurs to establish industrial units in SEZs. Under this incentive package, the government proposes to offer exemption of stamp duty and registration fee payable on transfer of land in SEZs.
 
There would be no registration fee or stamp duty on loan agreement, credit deeds and mortgages executed by the unit in the processing area of the zone.
 
Besides, sales tax, purchase tax and other taxes and cess payable on sales and transactions have also been exempted. The inputs made to units from domestic tariff area have also been exempted from sales tax and other taxes under the state laws.
 
These facilities are in addition to the various incentives offered by the Government of India to the SEZ developer as well as the industrial units to be set up in the zone. It may be recalled that the state government has already approved the proposal of setting up of more than half a dozen SEZs, including the ONGC-promoted SEZ at Kakinada.

Fiscal responsibility amendment Bill today
 

The Andhra Pradesh government would introduce amendments to the AP Fiscal Responsibility and Budget Management Act, 2005, in the state legislative Assembly tomorrow.

The amendments are essentially the changes and the clauses suggested by the Government of India to enable the state to get the Rs 1,600-crore structural adjustment loan (SAL3) from the World Bank.

The amendment Bill proposes to bring special reports along with the budget giving details of the number of employees in government/public sector and aided institutions and their salaries and pensions. It also proposes to reduce the fiscal deficit to 3 per cent of GSDP by 2008-09 instead of by 2009-10 as agreed earlier.

As per the present Act, the state government has to lay statements of fiscal policy along with the budget pertaining to the macro economic framework statement, the medium-term fiscal policy statement and the fiscal policy strategy statement before the Assembly.

 
 

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First Published: Dec 19 2005 | 12:00 AM IST

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