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All the eight Export processing Zones set up at kandla and Surat (Gujarat) Santa Cruz (Maharashtra) Cochin (Kerala), Chennai (Tamil Nadu), Vishakhapatnam (Andhra Pradesh), Falta (West Bengal), Noida (UP), have been converted into Special Economic Zones (SEZs). In addition, 3 new Special Economic Zones at Salt Lake- Manikanchan (West Bengal), Jaipur (Rajasthan) and Indore (MP) have become operational in 2004-05. The major incentives offered to units in Special Economic Zones to promote exports include duty free import /domestic procurement of goods, exemption from Central Sales Tax on supplies made from Domestic Tariff Area, exemption from Service Tax and 100 % income tax exemption for the first 5 years, 50% for the next 2 years and not exceeding 50% of the ploughed back profits for the next 3 years.
The Special Economic Zone scheme does not envisage any Central assistance for setting up of new Zones and they are being encouraged to be set up in the private sector or joint sector in association with the State government or by the State governments themselves. Proposals recently received through the State governments/Union territories for setting up SEZs at Mangalore, Bangalore, Hassan, (Karnataka), Shastri Park (New Delhi), Ghaziabad(UP), Mohali, Amritsar (Punjab), Nagpur (Maharashtra), and Trivandrum (Kerala) are under the consideration of the Government and the final decisions are expected soon.
SB/SS
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