Single-window setup for speedy approvals of economic zones: ASSOCHAM plea to govt.

To arrest the exodus of investors from the SEZ scheme entirely benefitting the SEZs/FTZs/EZs in countries such as China, UAE, Malaysia, Thailand, Vietnam, the industry body ASSOCHAM has advocated for single window clearance mechanism, ease of doing business and fiscal incentives both direct and indirect.

In a note submitted to the Commerce and Industry Minister, the chamber says that currently there are 416 SEZs (Special Economic Zone) which have been formally approved, out of which 330 SEZs have been notified.

Further, out of 330 notified SEZs, only 202 SEZs are were operational as on March 31, 2015. Nearly 3,900 units/ companies have set up their operations in these operational SEZs by making cumulative investment of Rs.2,88,477 crores.

The SEZs have created direct employment for nearly 12,39,845 persons. It is estimated that nearly double the number of indirect employment is generated outside SEZs by the Domestic Tariff Area (DTA) units, which are doing business with SEZ Units and/ or Developers. All this has been delivered by only 202 operational SEZs.

"If the entire 416 SEZs become operational, there will be quantum jump in exports from SEZs, development on industrial infrastructure and foreign investment into India", said D S Rawat, Secretary General ASSOCHAM.

There has been massive exodus from SEZs of late. In fact, until 2013, there were nearly formally approved 580-SEZs, of which over 150 SEZs have been de-notified/ have exited from the SEZ scheme in last 2 years.

So far as the notified SEZs (which are not operational yet) are concerned, the required land has been already acquired by the Developers and is free from all encumbrances. These SEZs could be the best bet for the Government's "Make in India" policy, as sizeable land is already available for generating economic activity.

The Government could support the operational SEZs to optimally utilize their potential/ capacities -by creating supportive business environment, said Rawat.