Govt to link SEZs with 'Make in India' to benefit from land pool

 With waning interest in Special Economic Zones(SEZs) and their declining performance, the government is planning to link SEZs with manufacturing and Make in India to take advantage of their vast land pool.

 Withdrawal of incentives and imposition of taxes like MAT and DDT have impacted the development and growth of the SEZs in India with most of the developers approaching the government to seek cancellation of these zones.

 But the SEZs, which are mainly treated as the export hubs have a land pool of 32,935 hectares with quality infrastructure like power, water and other utilities, and it is simpler to start a business from these zones than anywhere else.

 “We are thinking of a future investment in SEZs rather than abandoning the idea just because they are not yet profitable or most of them are being cancelled,” said a senior commerce ministry official.

 He said the government is thinking of making future investment in SEZs. Of course, some caution and policy intervention is required.

 There is a move to lift MAT and DDT in SEZs, he said, adding revival of interest in SEZs is necessary as they provide direct employment to nearly 16 lakh people in India and are responsible for 27% of India’s exports.

 Of late, five SEZ developers from IT and ITeS sector have approached the government for cancellation.

 Last year, about 80 developers had surrendered their zones as progress made by those developers were not satisfactory.

Some other developers who have sought government’s approval to cancel there zones include Orion IT Parks, and Salarpuria Properties.