<p>Worried over a drop in exports and delay in setting up specially proposed manufacturing clusters, the Centre is working on overhauling the Special Economic Policy. <br /><br /></p>.<p>With the industry and state governments citing problems in land acquisition as the biggest hurdle to set up Special Economic Zones (SEZs), the Ministry of Commerce is considering relaxing norms, including the minimum area requirement.<br /><br />According to the proposal, for agri-processing SEZs, the minimum land requirement will be reduced to 10 acres from the existing 100 acres. For multi-services SEZs, the requirement will be brought down to 50 hectares from 100 hectares. However, there will be a provision for SEZ developers to add another sector on an additional adjacent 50 hectares for multi-product SEZs.<br /><br />Earlier this year, the government reduced the minimum area requirement for single-product SEZs to 50 hectares and multi-product SEZs to 500 hectares. For IT SEZs, the minimum land requirement norm was scrapped. However, it is yet to notified. <br /><br />“The ministry will seek the Law Ministry’s nod before announcing the changes,” sources told Deccan Herald. “A fresh notification incorporating the changes will be issued soon.”<br /><br />With the land acquisition bill yet to get Parliament’s approval, the ministry wants to expedite the SEZs by simplifying the norms instead of waiting for the modified bill, sources said.<br /><br /> In the backdrop of the falling exports putting pressure on current account deficit, the government is trying to boost the manufacturing sector. The Finance Ministry has constituted a committee headed by Joint Secretary Rajat Bhargav to examine imports and suggest steps to contain “inward shipment of non-essential goods.”<br /><br />India’s full-year exports fell for the first time in three years with a dip of 1.8 per cent to $ 300.6 billion in 2012-13, taking the country’s trade deficit to a record high of $ 191 billion. India's exports declined 1.41 per cent to $72.4 billion in the first quarter of 2013-14. <br /><br />Despite shrinking exports, the SEZs emerged as a saviour as it had witnessed 31 per cent growth in exports. The government is also working on announcing incentives for exporters in the small and medium enterprises sectors to further boost shipments.<br /><br /> It includes increasing the rate of interest subsidy from 2 per cent at present and providing financial assistance for product designing and skill development.<br /><br /></p>
<p>Worried over a drop in exports and delay in setting up specially proposed manufacturing clusters, the Centre is working on overhauling the Special Economic Policy. <br /><br /></p>.<p>With the industry and state governments citing problems in land acquisition as the biggest hurdle to set up Special Economic Zones (SEZs), the Ministry of Commerce is considering relaxing norms, including the minimum area requirement.<br /><br />According to the proposal, for agri-processing SEZs, the minimum land requirement will be reduced to 10 acres from the existing 100 acres. For multi-services SEZs, the requirement will be brought down to 50 hectares from 100 hectares. However, there will be a provision for SEZ developers to add another sector on an additional adjacent 50 hectares for multi-product SEZs.<br /><br />Earlier this year, the government reduced the minimum area requirement for single-product SEZs to 50 hectares and multi-product SEZs to 500 hectares. For IT SEZs, the minimum land requirement norm was scrapped. However, it is yet to notified. <br /><br />“The ministry will seek the Law Ministry’s nod before announcing the changes,” sources told Deccan Herald. “A fresh notification incorporating the changes will be issued soon.”<br /><br />With the land acquisition bill yet to get Parliament’s approval, the ministry wants to expedite the SEZs by simplifying the norms instead of waiting for the modified bill, sources said.<br /><br /> In the backdrop of the falling exports putting pressure on current account deficit, the government is trying to boost the manufacturing sector. The Finance Ministry has constituted a committee headed by Joint Secretary Rajat Bhargav to examine imports and suggest steps to contain “inward shipment of non-essential goods.”<br /><br />India’s full-year exports fell for the first time in three years with a dip of 1.8 per cent to $ 300.6 billion in 2012-13, taking the country’s trade deficit to a record high of $ 191 billion. India's exports declined 1.41 per cent to $72.4 billion in the first quarter of 2013-14. <br /><br />Despite shrinking exports, the SEZs emerged as a saviour as it had witnessed 31 per cent growth in exports. The government is also working on announcing incentives for exporters in the small and medium enterprises sectors to further boost shipments.<br /><br /> It includes increasing the rate of interest subsidy from 2 per cent at present and providing financial assistance for product designing and skill development.<br /><br /></p>
