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Study on India's special economic zones policy on the anvil.


Date: 25-07-2013
Subject: Study on India's special economic zones policy on the anvil
CHENNAI: An interaction of EOUs (export oriented units) and SEZs (special economic zones) was organized in the city on Wednesday by the Export Promotion Council for EOUs and SEZs (EPCES) in association with the MEPZ (Madras Export Processing Zone) for resolving issues faced by these units.

"The ministry of commerce and industry has entrusted the responsibility of conducting a study on revisiting SEZs to the Indian Council for Research on International Economic Relations (ICRIER)," chairman of EPCES, PC Nambiar said. "The purpose of the study is understand the impact of the existing SEZ policy, examine the issues related to successful establishment of SEZs in India, analyse cost/benefit of SEZs and make suitable policy recommendations," he added.

SEZs are battling with a whole host of issues currently. The applicability of MAT/DDT (minimum alternate tax and dividend distribution tax) had adversely affected growth, investments, employability and exports of SEZs in the country, state officials. On its part, the council has made a request for fixation of MAT at its original initial rate of 7.5% when introduced in 2000.

The contribution of the EOU/SEZ sector to national exports is one-third and this sector gives employment to 15 lakh people. Exports from SEZs during 2012-13 stood at Rs 4,76,159 crore, representing a growth of 31% over exports during 2011-12.

Source : timesofindia.indiatimes.com

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