Special Economic Zones : Paradise for Investors
The Government of Gujarat
has recently promulgated ordinances to facilitate setting up of Special
Economic Zones and Industrial Parks. As per the provision of this ordinance,
the responsibilities of management of the Zone and all the permissions under
Single Window to the industrial units coming up in the Zones are vested with
the Development Commissioner of Government of India. In addition, all the powers, duties and
responsibilities for compliance of provisions under various labour laws as
available with Labour Commissioner, have also been delegated to the Development
Commissioner. In order to attract entrepreneurs for investing in the Zones, the
Government has also decided to offer certain incentives. The industrial units
setting up a power plant for his captive requirements would be offered
electricity duty exemption for a period of 10 years.
The units coming up in the
Zone are also exempt from the levy of stamp duty or registration fees on
transfer of land, loan agreement, credit deeds, mortgage documents or any other
contracts. Sales tax, purchase tax, motor spirit tax, luxury tax, entertainment
tax and other taxes are also exempted for the units set up in the Zone. The
Government has also exempted the tax on the supply of raw materials from the
domestic tariff area to the units located in the Zone. In Gujarat, at present,
Special Economic Zones at Kandla and Surat are already in place. The State
Government also plans to set up such SEZs at locations like Dahej, Hazira and
Mundra in the near future, of which permissions for SEZs at Dahej and Mundra
from Government of India have already been received. The facilities being
developed in the Special Economic Zones in Gujarat are going to prove to be
paradise for the investors in the times ahead and as a result, a sizeable
investment is expected to be materialized. At present, this ordinance has been
sent for Presidential accent through Central Government which is expected to be
received soon.