Centre to take up request for new SEZs on Sep 16

The Centre will consider requests for setting up of special economic zones (SEZ) on September 16, against the backdrop of a new tax regime that proposes to do away the existing duty benefits to the new units.

"The Board of Approval (BoA) will consider proposals for setting up SEZ and other related issues on September 16," a senior Commerce Ministry official said.

The revised Direct Tax Code, released on June 15 by the Finance Ministry, proposes to do away with tax benefits to new units, leading to a drop in the new applications for SEZs

Only three developers had approached the BoA in July for setting up new zones.

The Commerce Ministry had received six proposals each in April and June, while 10 developers had approached it in February, and 11 in December 2009.

Industry sources said the 15-year income tax benefit given to the SEZ units is a big attraction, which has helped bring in investments of over Rs 1.5 lakh crore in these tax free zones.

The sops -- customs duty and direct tax deductions -- provided to SEZs are projected to have increased by about 25 per cent to Rs 8,470 crore in 2009-10, over the previous fiscal.

As per the latest figures, exports account for 84 per cent of SEZs' total turnover.A total of 576 SEZs have been approved by the government, of which 114 are operational.