398 SEZs have not become operational
398 special economic zones (SEZz) have not yet started the operations despite getting the needed approvals. The aforesaid was stated by the Commerce and Industry Minister Nirmala Sitharaman in Rajya Sabha last day. While giving a reply to the supplementaries during the Question Hour, she stated that setting up of SEZs has been a long term process and the time for completion of the project depends of multiple issues.
The main reasons for which the SEZs have not started operating includes changed fiscal incentive regime for SEZs, problem in achieving contiguity of land, global recession, delay in approvals from the statutoty / state government bodies and the delay in environmental clearance. Environmental clearance takes a lot of time. The commerce and industry minister also stated that SEZ is cancelled or de-notified if it is subjected to payment of all applicable duties and tax benefits that has been availed by the developers and also the receipt of no objection certificate (NOC) from the concerned state government.
The government is hoping that the proposed SEZs will start operating as soon as the initial permissions and clearances have been acquired. Post the clearances the start up work will get a boost.
Source: Financial Chronicle
commerce Minister Nirmala Sitharaman, environmental clearance, No Objection Certificate, SEZ, special economic zones, Supreme Court
