Performance of Sezs

In addition to Seven Central Government Special Economic Zones (SEZs) and 12 State/Private Sector SEZs set up prior to the enactment of SEZ Act, 2005, formal approval has been accorded to 574 proposals out of which 391 SEZs presently stand notified. A total of 175 SEZs have commenced export. A list showing State-wise distribution of formally approved, notified and operational SEZs is at Annexure-I. No proposal for setting up of an SEZ is pending for approval by Board of Approval.

As per Entry No. 18 of the State List in the 7th Schedule to the Constitution of India, land is a State subject. The Board of Approval approves a proposal for establishment of a SEZ subject to the requirements of minimum area of land and other terms and conditions prescribed in the SEZ Act and Rules. The approval for setting up of a SEZ is given on the recommendations of the State Government. Issues related to availability/provisioning of land for SEZs are in the domain of the State Government concerned. As on 5th December, 2013, 574 formal approvals for SEZs covering a total area of 61,545 hectares have been granted. Further, the issues relating to the displaced population, if any, are addressed by the respective State Governments. A statement showing the State-wise details of land area in SEZs is at Annexure –II.

The contribution of SEZ exports to overall country’s exports during the last three years and the current financial year are as under:

* April, 2013 to September, 2013

The employment generated in SEZs during the last three years and the current financial year are as under:

* calculated on cumulative basis.

A statement showing the State-wise details of employment generated in SEZs is at Annexure –III.

As per Rule 53 of SEZ Rules 2006 the SEZ units are under an obligation to achieve positive Net Foreign Exchange (NFE) earnings to be calculated cumulatively for a period of 5 years from the commencement of production. Further, the Approval Committees under the respective Development Commissioners constituted for each Zone, which comprise representatives from Departments of Customs and Income-tax, State Governments etc. monitor the performance of the SEZ Units. Such monitoring includes scrutiny of Annual Performance Report (APR), Quarterly Performance Report (QPR) and other details furnished by the SEZ units. Failure to meet the requirements of the SEZ Act and Rules or any violation of its provisions attracts action under Foreign Trade (Development and Regulation) Act, 1992.

Annexure-I

            Annexure-II

 Annexure-III

The information was given by the Minister of State in the Ministry of Commerce and Industry Dr. E.M. Sudarsana Natchiappan in Lok Sabha today.