SPECIAL ECONOMIC ZONE• SEZ is a geographical region that has economic and other law that are more free market oriented than a country‘s typical or national law’s. “Nationwide” laws may be suspended inside a special economic zones.
SEZ LAND REQUIRED (HECTARES)MULTI - PRODUCT 1000 OR MORESECTOR SPECIFIC IN ONE OR 1000 OR MOREMORE SERVICE OR PORT ORAIRPORTSECTOR SPECIFIC ( IT, 10 OR MOREHARDWARE, SOFTWARE,ENERGY)FREE TRADE AND 40 OR MOREWAREHOUSING ZONE
Approval mechanism for the establishment of an SEZ for the Central and state government as a developer
Approval mechanism for the establishment of an SEZ for a private developer
Limiting factors• Governmental promises & pitfalls.• The acquisition of land by state government directly from the farmers at a price fixed by the govt. became controversial.• Corruption.• Formation of new policy.
EXIM policyIndian EXIM Policy contains various policy relateddecisions taken by the government in the sphere ofForeign Trade, i.e., with respect to imports andexports from the country and more especiallyexport promotion measures, policies andprocedures related thereto
objectives• To accelerate the economy from low level of economic activities to high level of economic activities .• To stimulate sustained economic growth .• To enhance the techno local strength and efficiency of Indian industrial sector.• To generate new employment• To provide quality consumer products at reasonable prices.
Special Economic Zone (SEZ) under the EXIM Policy 2009-2014The area under SEZ covers a broad range of zone types, including• Export Processing Zones (EPZ),• Free Zones (FZ),• Industrial Estates (IE),• Free Trade Zones (FTZ),• Free Ports,• Urban Enterprise Zones and others
Export related benefits• Special council is made named Export Promotion Council in SEZ’s.• Easy Custom clearance• Exemption from Central Sales Tax.
Export Promotion Council Objectives• To promote exports from India and to earn more foreign exchange for the country.• To facilitate interaction between the exporting community and government both at the Central and State level.• To canalize financial assistance rendered by the Central Government to members for assisting their export market development efforts.• To collaborate with other Export Promotion Councils/Export Promotion Organizations in India and similar bodies in foreign countries as well as with international organizations working in the field.
Condition for Import• The import shall be subject to the following conditions: – The goods shall be imported into the premises of the unit. – The procedure as prescribed under Customs/ Excise rules for SEZ will be followed and general bond executed with Customs/Excise authority. – Goods already imported/shipped/ arrived before the issue of Letter of Permission (LOP)/Letter of Intent (LOI) are also eligible for duty free clearance under the SEZ scheme provided customs duty has not been paid and the goods have not been cleared from customs.
Import Benefits• Facilitate the duty free import of samples• Reduction of transaction costs.• Duty- free imports of various goods.
Maha Mumbai Special Economic Zone(MSEZ)Promoted by Mukesh Ambani & Anand JainLocation RaigadCategory Multi productProposed investment 10000 cr.Current investment: 600 cr.Land required 10000 hectaresLand acquired 1943 hectaresProject Status Suspended
MSEZ’S Problems• Strong opposition from farmers• Constraints of time• Political interference
Hope• Waiting for approval of land acquisition(amendment)• Location and logical advantage• Clubbing for broader perspective
DRONAGIRI SEZ• The Dronagiri node of Navi Mumbai sez is one of the southern trip of Navi Mumbai and is spread over a total area of 1250 ha. The SEZ site in Dronagiri Node is surrounded by long waterfront and water bodies.
ULWE SEZ• The Ulwe Node of Navi Mumbai SEZ covering an area of about 80 ha is located equidistant from the Dronagiri and nodes of Navi Mumbai SEZ
ULWE(EAST)-AIRPORT• The Ulwe (airport) Node of Navi Mumbai SEZ would cover approximately 500ha and is located equidistant from the Dronagiri and kalamboli Node of Navi Mumbai SEZ.
INDIA BULLS• India bulls is an Indian company with its presence in the Real Estate , Infrastructure ,Securities , Financial services , Retail , Multiplex and Power sectors.• The company was Founded in May 2000 as an online stock brokerage.• It diversified into its current portfolio.• India bulls financial services received venture capital funding from Mr. Lakshmi Mittal &Harish Fabiani.
INDIA BULLS GROUP• India bulls group one of the largest business house.• The group has several businesses which cover a wide spectrum of Real Estate, Financial Services, Securities, Power and Chartered Aviation.• Many of the companies are public entities and are listed on Indian stock markets.• Indiabulls was conferred the status of a “Business Superbrand” by The Brand Council, Superbrands India in 2008.
India bulls infrastructure• It is located in Sinnar in Nasik district,• Indiabulls Nasik SEZ is Maharashtra’s first multi- product SEZ for growth sectors like textiles, electronics/electrical, automobile and auto component, pharmaceuticals and bio-tech, food processing.
India bulls infrastructure• They Spread over 2500 acres,• It provides world-class infrastructure support for maximizing production, minimizing logistics redundancy and improving the overall business efficiency.
Indiabulls Real Estate•The Indiabulls Real Estate Limited has India presencewith various iconic projects ranging from commercialand residential towers to SEZ.•The Indiabulls brought the first FDI to the Indian realestate market by partnering with Farallon CapitalManagement LLC of USA.•The company plays the ambitious role of convertingthe 26 million sq ft area into 16 cities offering high endresidential, commercial and retail of premium qualitywithin a short span of time.•
India bulls infrastructure• It Facilitates to –1. Management,2. Residential,3. Commercial (Office and Retail),4. Development of SEZ and5. Thermal and Hydro-power generation.
Positive Impacts• To Nation – World class business environment – Increased FDI – Higher economic growth – Infrastructural development – Export growth – Employment Opportunities – Exposure to technology and global markets
• TO Business houses – Hassle free operating environment – Duty free import – Tax exemption- VAT, CST, ST other levies and taxes – External commercial borrowings – 100% profit repatriation from export earnings
• To People – Employment opportunities – Impact on lifestyle and standard of living – Business infrastructure combined with social facilities – Better work culture good education leadership vision
Hurdles• To People – Grabbing of fertile land – Water scarcity- Threat to access – Food scarcity – Exploitation of labour – Landless farmers• To Environment – Mangrove destruction – Destruction of ground water recharge system – Pollution
Ill impact of SEZ• Economic impact – Loss of farmland – Loss of wells and bore wells – Loss of live stock – Migration
• Environmental impact – Impact of health – Illness – Loss of trees
• Social impact – Impact on women – Breakdown of collective life – Child labour
RECOMMENDATION• Govt. should increase employment opportunities in SEZs in Agriculture Sector.• Govt. should reduce problems related to labour in SEZs.• Govt. should be concentrated towards providing infra structural facilities in rural economy.• Govt. should have increase trade duties and tariffs in SEZs for the purpose of revenue.• Govt. should see the problems of farmers affected by the adverse effects of SEZs.• Govt. should also increase the sustainable development in an economy from SEZs etc.