The government has streamlined the process of according clearance to state SEZ bills by making commerce ministry the nodal agency for getting all necessary approvals from various Central ministries and departments.
The decision was taken at a meeting between the Home and Commerce ministries recently.
"The commerce department will now take responsibility of consultations with all departments to create consensus for state SEZ bills and send its recommendations along with the no-objection certificates to the home ministry," an official said. The home ministry, in turn, will get the approval from the President.
There is a Central SEZ Act, but the Centre wants the states to come out with their own laws to make these tax-free zones more attractive. Special economic zones fall under the Concurrent List.
Currently, the onus of getting approvals from different departments like environment, power, land resources, labour and social justice and empowerment, is on the home ministry.
"As the home ministry is involved in several major issues, there was lack of coordination in this procedure. It was lengthy also," the official pointed out and said as the commerce ministry is the nodal point for matters related to the export-oriented SEZs,it will fasten the clearance process.
Till now, six states--Gujarat, Haryana, Madhya Pradesh, West Bengal, Tamil Nadu and Punjab--have framed their own SEZ Acts. Besides, the tax concessions extended by the Centre to the SEZ developers and units, states under their respective SEZ Acts also provide benefits like exemption from stamp duty, purchase tax, luxury tax and entertainment tax.
