Para a - Model State Policy on SEZ - State Policies

STATE POLICIES - MODEL STATE POLICY ON SEZ The Central Government has brought out Model State Policy on Special Economic Zone for State Governments. STATE GOVERNMENT'S POLICY REGARDING SETTING UP OF SPECIAL ECONOMIC ZONES (DRAFT) 1. Preamble Government of India have announced a policy on Special Economic Zones (SEZs) in the year. These SEZs are to be deemed foreign territory for tariff and trade operations. SEZs can be developed in the public, private or joint sectors or by the State Governments, in accordance with guidelines issued from time to time by Government of India. This measure is expected to promote establishment of large, self-contained areas supported by world-class infrastructure oriented towards export production. Exploiting the full potential of the concept of SEZs would bring large dividends to the State in terms of economic and industrial development and the generation of new employment opportunities. In effect SEZs are expected to be engines for our economic growth. 2. In the context of Government of India guidelines for the establishment of SEZs, the matter of formulating a policy regarding the dispensations which the State Government will accord to promote the development of SEZs has been under the consideration of the State Government. It has now been decided that the following policy will apply to all SEZs in the State, subject to the framework for SEZs determined by Government of India from time to time. 3. Single Window Clearance Government of ______ has taken a policy decision to liberalize regulatory framework relating to SEZs by taking following steps: a. Most of the clearances shall be brought under automatic clearance route, meaning thereby that ex-post facto information by the entrepreneur is sufficient; b. In respect of other cases, clearances shall be given at a single point i.e. Development Commissioner who himself or through a committee constituted under him could grant approvals as per the guidelines laid down for the purpose. c. For all clearances required from State Government agencies, State Govt shall notify a single form of application and Letter of Permission issued by the DC shall contain approvals of subjects covered by the application form. It is expected that the State Government shall notify, in due course, an Act to provide for such single window clearance. 4. Environmental Laws There is a general consensus that Environmental laws should be complied with in SEZs like in the rest of the country. However, there is a concern about the time taken in granting various approvals. It needs to be mentioned that in the zones of Dubai, China and Panama, are Coastal Zones, and all approvals are accorded by the authority located in the Zone. State Government resolves that: i. The State Government would notify a list of non-polluting industries where no pollution clearance would be required in SEZ and NOC for such units, irrespective of their size, be given being an officer of PCB posted in the Zone. ii. State Government will consider having a green-belt around each SEZ in order to avoid unplanned development. iii. In the overall area proposed for any zone there may be small patches of forest land. It may not be possible to exclude the same from the layout. However, State Government shall provide land in lieu of it but cost of afforestation on it shall be borne by SEZ developer. iv. Success of SEZ depends upon the effective single window mechanism. While there is no intention to relax application of environmental laws to SEZ, the essence is issuance of approval in a time bound manner in the zone itself. It is, therefore, proposed that, a Committee shall be constituted in each Special Economic Zone under the concerned Development Commissioner which would consist of officers of Ministry of Environment Forest, Government of India, State Pollution Control Board and experts on the subject and it should be empowered to accord all clearances which are required from the State Governments relating to development of Special Economic Zone or setting up of the units in Special Economic Zone. 5. Power The State Government would provide following frame-work for the sector in SEZs: a. SEZ shall be exempt from electricity duty and tax on sale of electricity for self-generated and purchased power. b. Within SEZ, Distribution Company shall have freedom to fix tariff for consumers. c. Staff of SEB shall be posted in EPZ (to be converted into SEZ) for approval of power connections and billing with full powers. d. No prior approval will be required to set up captive power units by SEZ units. e. SEZs will have freedom to have generation, transmission and distribution of power within the SEZ along with grid connectivity to draw power from the State grid, as the case may be. Such grid connectivity would be permitted on the basis of "pay and use" without any standby charges. Similarly, surplus electricity generated by SEZ captive power would be purchased by the State Electricity Board. f. Third party sales would be allowed either through free grid access or directly to private parties without any restrictions. g. Special Economic Zones would be free to procure power from NTPC or any other generating company and SEZ would be treated as an extension of State Electricity Board for fixation of tariff. 6. Inspection For all physical inspections, a schedule would be worked out in consultation with the Development Commissioner and then only the inspections would be carried out. However, in case of any specific information of any violation, the inspecting agency would visit after taking prior approval of the DC for their proposed inspection. 7. State Taxes, Levies and Cess All SEZs units and SEZ developer would be exempt from Sales Tax, Turnover Tax, VAT, Octroi, Mandi Tax, Purchases Tax, Electricity Cess, Stamp Duty or any other kind Cess or Levy of the State Governments for any transactions between them within the zone as well as on sales made to DTA. Units in DTA would also be exempt from these taxes and levies on sales made by them to a SEZ unit and SEZ developer. SEZ developer and units would also be exempt from taxes levied by local bodies, as they would be self-contained units and would be responsible for the maintenance of services within the Zone. 8. Labour State Government perceives SEZs as institutions for creating employment. It would, among other things, provide following dispensations: a. It would delegate powers to the Development Commissioner and also place an officer of the Labour Dept. under the Development Commissioner. State Government would also delegate to Development Commissioner powers of State Government under various Labour Laws for the SEZ b. State Government would notify a single reporting format for all SEZ units which would cover all Labour Laws. c. Appropriate officials of Zone would be designated as Inspectors, Conciliation Officers and Registration Officers under various Labour Laws to provide the single window service. d. For inspections relating to workers' health and safety, the State Govt. would use best international practices by permitting units to get such inspections done through such accredited agencies (outside Labour Dept.) as may be notified by the Government. e. A summary of the proposed simplifications under labour laws is given at Annexure. 9. Water: State Government commits to provide adequate quantity of water for drinking and other use available to the SEZ. 10. Management of Zone: The State Government will declare SEZ as Industrial Township and if necessary, relevant Act would be amended so that SEZ can function as a governing and autonomous body as provided under Article 243(Q) of the Constitution. 11. The State Government shall make appropriate and exclusive arrangements within the SEZ for the maintenance of law and order, and the control of crime. 12. The State Government shall constitute a Committee of Secretaries and other concerned officials, including representatives of the SEZ authorities/promoters, under the Chairmanship of Chief Secretary to resolve various issues pertaining to the promotion, development and functioning of SEZs in the State. Annexure SUMMARY OF PROPOSED SIMPLIFICATIONS IN LABOUR LAWS Sl. No. Name of the Act, Section and Title Simplification proposed (1) (2) (3) 1.1 Chapter I — Simplification of Procedures Reporting System (Consolidated Annual Report) Consolidation of various periodical returns (quarterly, half yearly etc.) prescribed under Factories Act, Wages Act, Maternity Benefit Act, Workmen Compensation Act, Contract Labour Act, Minimum Wages Act, Bonus Act. 1.2 Dispensation of Registers Factories Act :— (i) Humidity Register (Form No. 6) (ii) Record of lime washing and painting etc. (iii) Register of workers employed on or near the moving machinery. 1.3 Dispensation of certain returns Factories Act :— (i) Half-yearly return (ii) Quarterly return of handicapped persons. (iii) Half-yearly return to be filed by contractor 1.4 Merging Registers/Forms (i) Adult workers Register. (ii) OT Register. (iii) Muster Roll. 1.5 Single Labour Authority (i) DCs be delegated with the powers of Labour Commissioner. (ii) Posting of an officer of Labour Department in SEZ do deal with labour matters or nomination of an officer by DC as labour officer (iii) Delegation of powers for providing Single Window Clearance to SEZs. 2. Chapter II — Changes by Notification Provident Fund and Miscellaneous Provision Act Exempting of certain establishments from the operation of the Act by the appropriate Government (Section 16) SEZ units be exempted from the provision of this Act. 2.1 Industrial Dispute Act, 1947 Granting of Public Utility utility Status [Section 2(n)] SEZ units be granted public status on permanent basis. 2.2 Industrial Dispute Act, 1947 Granting of exemption regarding notice of change of condition of service. [Section 9(a)] SEZ units be exempted from the provision of this Act. 2.3 Industrial Dispute Act, 1947 Granting of permission by the appropriate Govt. for lay-off, retrenchment and closure.(Sections 25-M, 25-N, 25-O) DCs be delegated with powers for granting permission under these Sections. 2.4 Industrial Dispute Act, 1947. Conciliation proceedings. Appointing of conciliation officer by the appropriate Government (Section 4) DCs be appointed as the conciliation officers in respect of SEZs. 2.5 Factories Act, 1948 Exemption from notice of period of work. [Sections 8(1) 8(2)] Exemption of SEZ units from under Section 51 (weekly hours), Section 52 (weekly holidays), Section 54 (daily hours), Section 56 (spread over). 2.6 Minimum Wages Act, 1948 Granting of exemption by the appropriate Government from the provision of this Act. (Section 26) SEZ units be exempted by the appropriate Govt. from this provision. 2.7 Minimum Wages Act, 1948 Granting of exemption by the appropriate Government from the provision. provision of this Act. (Section 14) SEZ units be exempted by the appropriate the Government from this 2.8 Minimum Wages Act, 1948 Maintenance of Registers and Records. (Section 18, 11, 13) SEZ units be exempted from this provision. 2.9 Delhi Shops Establishments Act, 1954. Granting of exemption to certain establishment by the appropriate Government SEZ units be exempted from this provision. 2.10 Employees State Insurance Act, 1948. Granting of exemption to certain establishment by the appropriate Government SEZ units be exempted from this provision. 2.11 Industrial Employment (Standing Orders) Act, 1946 Exemption from publication of working time, wages and shift working schedule. (Section 14,Section 6, Section 7) SEZ units be exempted from these provisions. 2.12 Payment of Gratuity Act, 1972 Exemption to certain unit/ establishment by the appropriate Government (Section 5) Extending the exemption to SEZ units. 2.13 Payment of Wages Act, 1936 Appointment of Inspectors. Labour Officer of SEZ be appointed as Inspector under this Act. 2.14 Payment of Wages Act, 1936 Payment of wages (Section 6) With the consent of the employee wages may be paid either by cheque or by crediting in his bank account. 2.15 Payment of Wages Act, 1936 Maintenance of records. (Section 13-A) SEZ units be permitted to maintain the records through electronic media. 2.16 Payment of Wages Act, 1936 Display of rate of wages (Section 26) SEZ units be exempted from this provision. 2.17 Contract Labour (Regulation and Abolition) Act, 1970 Appointment of Registering Officer [Section 6(a)] Jurisdictional Labour Officer be appointed as the Registering Officer for SEZ units. 2.18 Contract Labour (Regulation and Abolition) Act, 1970 (Section 11) Appointment of Licensing Officer. -do- 2.19 Contract Labour (Regulation and Abolition) Act, 1970 Granting of exemption to certain units from applying the provision of this Act. (Section 31) SEZ units be exempted from this provision. 2.20 Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 Intimation to Employment Exchange about vacancies. Section 4(2) SEZ units be exempted from this provision. 2.21 Equal Remuneration Act, 1976 Appointment of authorities for hearing and deciding claims and complaints. (Section 7) Jurisdictional Labour Officer be appointed as the authority in respect of SEZ units. 2.22 Equal Remuneration Act, 1976 Appointment of inspectors for making investigations. (Section 9) Jurisdictional Labour Officer be appointed as the inspector in respect of SEZ units. 2.23 Apprentices Act, 1991 Appointment of Apprentices in units. (Section 8) This provision be dispensed with for SEZ units. 2.24 Minimum Wages Act, 1948. Appointment of proper officer The word 'inspector' wherever appearing in this Act be substituted by "Jurisdictional Labour Officer" in respect of SEZ units. 2.25 Payment of Bonus Act, 1965 Appointment of proper officer. -do- 2.26 Payment of Gratuity Act, 1972. Appointment of proper Officer. -do-