Govt to take up new SEZ requests on July 13

The government will consider fresh applications for setting up Special Economic Zones (SEZ) on July 13 in the backdrop of a new proposal in the draft Direct Tax Code denying income tax benefits to new units in SEZs.

The Board of Approval (BoA) headed by Commerce Secretary Rahul Khullar is scheduled to meet next month to "consider proposals for setting up of SEZs and other miscellaneous requests", an official said.

The official, however, did not reveal how many new developers have approached the BoA.

Concerns have been raised by Commerce Ministry officials, as well the industry, about investments in SEZs after the DTC comes into force.

The industry said the income tax benefits were the only attraction for investment in SEZs, which accounted for about 25 per cent of the country's exports in 2009-10. As per the latest data, SEZs have attracted investments worth Rs 1.5 lakh crore.

According to the revised DTC draft, which will replace the Income Tax Act of 1961 once approved by Parliament, the tax exemptions for SEZs will be provided only for existing units and not new units.

The BoA had approved six new SEZ projects in its last meeting held on June 8.

Of the 580 approved SEZs, 111 are functional.