The Special Economic Zones (SEZs) policy was launched in April, 2000. The Special Economic Zones Act, was enacted in 2005.
The amount of land that the proposal requires will determine what type of SEZ it will be. Some of the different types are:
Multi sector SEZ (requiring a minimum of 1000 hectares of land);
Sector specific SEZ (requiring a minimum of 100 hectares);
Free Trade and Warehousing Zone (FTWZ) (requiring a minimum of 40 hectares); and
IT/ITeS/handicrafts/bio-technology/non-conventional energy/gems and jewellery SEZ (requiring a minimum of 10 hectares).
Incentives and facilities available to developers and include:
Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.
Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act. (Sunset Clause for Developers has become effective from April 1, 2017).
Duty free import and domestic procurement of goods for the development, operation, and maintenance of your company/SEZ unit;
100 percent income tax exemption on export income for first five years, 50 percent for five years thereafter, and 50 percent of the export profit reinvested in the business for the next five years.
Exemption from the goods and services tax (GST) and levies imposed by state government (supplies to SEZs are zero rated under the IGST Act, 2017, meaning they are not taxed);
Exemption from Minimum Alternate Tax (MAT)
Single window clearances for all state and federal government approvals
Exemption in electricity duty and tax on sale of electricity by certain states in India;
Presence of customs officer in the SEZs to facilitate and expedite the trade processes; and
Some states also offer land to SEZ developers at concessional rates to promote industries in accordance with the state’s prevailing Industrial Policy.
There were 7 Central Government Special Economic Zones (SEZs) and 12 State/Private Sector SEZs prior to the enactment of the SEZs Act, 2005. In addition, 425 proposals for setting up of SEZs in the country have been accorded formal approval under the SEZ Act, 2005. Presently, 378 SEZs are notified, out of which 265 are operational. States/Union Territories-wise details of SEZs is below.
Eight Special Economic Zones (SEZs) have been approved for the Agro and Food Processing sector in India. Of these 8 SEZs, 7 have been notified and 4 are operational.