Replying to supplementaries to a host of questions on SEZs in Rajya Sabha, Union Commerce & Industry Minister Kamal Nath said special economic zones have become important engines of economic growth.

“At the moment, there is no proposal to amend the SEZ Act. It has worked well, it is working well. It is providing growth in employment and is one of the important engines of economy,” he said. Stating the government will look into specific instances of “misuse or abuse” of the Act, he said, the “SEZ Act is passed by the House and it is not a policy. If there is misuse or abuse, we will be very happy to look into it if specific cases are pointed out.”
Mr Kamal Nath said the Economic Survey has dispelled concerns raised about SEZs and shown that there is “very, very substantial gain,” adding the government has not conducted any study or assess the impact of the recent economic slowdown on exports from SEZs.

On reviewing the viability of SEZs, he said as the newly established SEZs have just begun operations, it is too early to make any assessment on their viability.

Formal approvals

He said exports from SEZs was of Rs 34,615 crore in the last fiscal, up from Rs 22,840 crore in 2005-06 and Rs 18,314 crore in 2004-05. There is a growth of 89 per cent in two years, he added. In the current fiscal, exports have reached the level of Rs 40,000 crore, he said.

Under Special Economic Zone Act, 2005, 439 formal approvals have been granted for setting up special economic zones spreading over 60,168 hectares in 22 states out of which 202 have been notified. Till last year, total incremental employment in all the SEZs is 1.46 lakh, he said.

The new generation SEZs have brought in investment worth Rs 70,225 crore out of which Rs 67,347 crore have been made in SEZs notified under the SEZ Act, 2005, he added.