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 Who
can set up SEZs? |
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| How
can one apply for setting up of SEZs? |
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| Are
there any terms & conditions for setting up of SEZs? |
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| What
is role of State Governments? |
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| What
is the approval mechanism for the units? |
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| What
is the obligation of the Unit under the Scheme? |
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| What
is the procedure to obtain Single Window Clearance for setting up SEZs in
Karnataka? |
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| Who
can set up SEZs? |
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| Any private / public / joint sector or State Government or its agencies can set
up Special Economic Zone (SEZ). |
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Can
Foreign Companies set up SEZs?
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| Yes. |
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| How can one apply for setting up of SEZs? |
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| 15 copies of application, indicating name and address of the applicant, status
of the promoter along with a project report covering the following particulars
may be submitted to the Chief Secretary of the State: |
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Location of the proposed Zone with details of existing infrastructure or that
proposed to be established |
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Area, distance from the nearest seaport / airport / rail / road head etc. |
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Financial details, including proposed investment, mode of financing &
project viability. |
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Details of foreign equity and repatriation of dividends etc., if any |
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Whether the Zone allows only specific industries or will be a multi-product
Zone. |
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| The State Government shall forward it, along with their
commitment on the following to the Department of Commerce, Government of India: |
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Area incorporated in the proposed SEZ is free from environmental restrictions. |
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Water, electricity and other services would be provided as required. |
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Units would be given full exemption in electricity duty and tax on sale
of electricity for self generated and purchased
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| power. |
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Allow generation, transmission and distribution of power within SEZ. |
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Exempt from State sales tax, octroi, mandi tax, turnover tax and any other duty
/ cess or levies on the supply of goods |
| from Domestic Tariff Area to
SEZ units. |
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For units inside the Zone, the powers under the Industrial Disputes Act and
other related labour Acts would be |
| delegated to
the Development Commissioner and that the units will be declared as a Public
Utility Service under |
| Industrial Disputes Act.
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Single point clearances system and minimum inspections requirement under State
Laws / Rules would be provided. |
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| The proposal incorporating the commitments
of the State Government will be considered by an Inter-Ministerial Committee in
the Department of Commerce. On acceptance of the proposal, a letter of
permission will be issued to the applicant |
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| Are there any terms & conditions for
setting up of
SEZs? |
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Only units approved under SEZ scheme would be permitted to be located here. |
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| SEZ
units shall abide by local laws, rules, regulations or bye-laws in regard to
area planning, sewerage disposal, |
| pollution control
and the like. They shall also comply with industrial and labour laws as may be
locally applicable. |
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SEZ shall make security arrangements to fulfill all the requirements of the
applicable laws, rules and procedures. |
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SEZ should have a minimum area of 1000 hectares and at least 25% of the area is
to be earmarked for developing |
| industrial area for
setting up of units. |
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Minimum area of 1000 hectares will not be applicable to product specific and
port / airport based SEZ. |
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The minimum area for sector specific SEZ viz, IT & ITES, Biotechnology,
non-conventional energy, including solar |
| energy
equipments / cell, or gem and jewellery sectors, shall be 25 acres and the
minimum area for any other sector |
| specific
SEZ or port or airport, shall be 250 acres, provided that at least 50% of the
area is be earmarked for
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| developing
processing area.
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Wherever the SEZ are landlocked, an Inland Container Depot (ICD) will be an
integral part of the SEZ. |
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| Detailed guidelines on setting up of SEZ in the Private / Joint /
State Sector are given in Appendix 14-II.N of Handbook of Procedures Volume I. |
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| What is role of State Governments? |
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| State Governments have a very important role to play in the
establishment of SEZ. Representative of the State Government, who is a member
of the Inter-Ministerial Committee on private SEZ, is consulted while
considering the proposal. Before recommending any proposals to the Ministry of
Commerce & Industry (Department of Commerce), States must ensure that they
are in a position to supply basic inputs like water, electricity, etc. |
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| How to set up a unit in
SEZ? |
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| For setting up a manufacturing, trading or service unit in SEZ, 3
copies of project proposal in the format prescribed at Appendix 14-IA of the
Handbook of Procedures, Vol.1 are to be submitted to the Development
Commissioner of the SEZ. |
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| What is the approval mechanism for the units? |
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| All approvals are to be given by the Unit Approval Committee headed by the
Development Commissioner. Clearance from the Department of Policy and Promotion
/ Board of Approvals, wherever required will be obtained by the Development
Commissioner, before the Letter of Intent is issued. |
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| What is the obligation of
the Unit under the Scheme? |
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| SEZ
units have to achieve positive net foreign exchange earning as per the formula
given in paragraph Appendix 14-II |
| (para 12.1) of
Handbook of Procedures, Vol.1. For this, a Legal Undertaking is required to be
executed by the unit with |
| the Development
Commissioner.
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Units have to provide periodic reports to the Development Commissioner and Zone
Customs as provided in Appendix |
| 14-I F of the
Handbook of Procedures, Vol.1. |
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Units are also to execute a bond with the Zone Customs for their operation in
the SEZ. |
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Companies set up with FDI have to be incorporated under the Indian Companies
Act with the Registrar of Companies |
| for undertaking
Indian operations. |
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| What is the procedure to obtain Single Window
Clearance for setting up SEZs in
Karnataka? |
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| Projects with investments between INR 3 to 50 crores,
will be cleared by the State Level Single Window Clearance Committee (SLSWCC),
chaired by the Principal Secretary, Dept. of Commerce and Industries,
Government of Karnataka. |
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| If the investment is above than INR 50 crores, it will be cleared
by the State High Level Clearance Committee (SHLCC), chaired by the Chief
Minister, Govt. of Karnataka. |
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| The application forms for SLSWCC/ SHLCC are to be submitted to: |
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Karnataka Udyog Mitra
3rd Floor, South Block, Khanija Bhavan
Race Course Road, Bangalore - 560 001
Phone: 91-80-22286632, 22285659, 22282392
Fax: 91-80-22266063 |
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| The form can be downloaded from
www.kumbangalore.com |
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| For more information on SEZ's, please
log on to http://commerce.nic.in or http://www.sezindia.nic.in |
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