Advantages of Private Special Economic Zone
Special Economic Zones, commonly referred to as SEZs is a generic term that has been assigned to any modern economic zone. The focus of SEZs is the promotion of industrialization and economic growth through sustainable development. It is important to note that the business and trade laws within these SEZs differ from the rest of the country, to encourage business participation within the zone, financially libertarian policies are introduced. These policies typically regard investing, taxation, quotas, customs and labour regulations.
SEZs attract Foreign Direct Investment (FDI) which is a major incentive for the host country, like India for example. The participating companies gain by being in a SEZ, meaning it can produce and trade goods at a globally competitive price.
The major aims of these SEZs in India are:
• Improved generation of economic activity.
• Promoting the export of goods and services from the host country.
• Attract investment from Domestic and Foreign sources, especially FDI.
• Increased employment opportunities for Indian nationals.
• Development of infrastructure facilities.
• Simplified procedures for development, operation and maintenance of the SEZ and for setting up units and conducting business.
• Single window clearance for setting up of a SEZ and a unit within the SEZ.
• Single window clearance on matters relating to Central as well as State Governments.
• Easy and simplified compliance procedures and documentations with stress on self certifications.
Business Units operating within the SEZs in India have several advantages listed below:
1. 10 year tax holiday for business units.
2. Exemption from duties on all imports for project establishment.
3. Exemption from Excise duty/VAT on domestic sourcing of capital goods for project establishment
4. No foreign ownership restrictions in developing zone infrastructure and no restrictions on repatriation.
5. Freedom to develop full-fledged residential township within the SEZ, without any restrictions on foreign ownership.
6. Income tax holidays on business income.
7. Exemption from import duty, VAT and other Taxes.
8. 10% FDI allowed through automatic route for all manufacturing activities.
9. Procedural ease and efficiency for speedy approvals, clearances and customs procedures and dispute resolution.
10. Simplification of procedures pertaining to labour laws.
11. Artificial harbor and handling bulk containers made operational through-out the year.
12. Accommodates a host of Public and Private Banks to offer financial assistance to business houses.
13. SEZs are a vibrant industrial city with abundant supply of skilled manpower across all operational levels.
14. Easy connectivity to modes of Public transport including – buses, local railway network and airports.
15. Pollution free environment with proper drainage and sewage system.
16. In-house Customs clearance facilities.
17. Full authority to provide facilities such as water, electricity, security, restaurants and recreational facilities within the SEZ on purely commercial basis.
SEZs have contributed greatly to the growth of India’s GDP by exports. Indian SEZs have created over 840,000 jobs as of 2010-11 and exports through Indian SEZs reached INR 3.64 Trillion (roughly US$66 billion). As of 2011-12 fiscal, investments worth over US$36.5 billion (INR 2.02 Trillion) have been made in these tax-free enclaves. Exports of Indian SEZs have experienced a growth of 50.5% for the past eight fiscals from US$2.5 billion in 2003-04 to about US$65 billion in 2011-12 (accounting for 23% of India’s total exports).
The Tamil Nadu has encouraged the development of SEZs and allotted several locations for the setting up of these facilities. The Tamil Nadu Industrial Development Corporation is the sanctioning authority for SEZs across the state.
ABOUT AMRL
One of the latest entrants in SEZs is the AMRL International Tech City which is a full-fledged SEZ township with designated manufacturing and residential areas; it will have all the support utilities like schools, markets, hospitals, transport, parks and recreational facilities functioning as a City in itself.
The AMRL Tech City is a Multi-product SEZ and can house different businesses from across the industry spectrum. It is strategically located close to the Sea Port city of Tuticorin in Tirunelveli District of Tamil Nadu. The AMRL Tech City is a joint venture between TIDCO and the prestigious AMR Group.
CONTACT US:
AMRL HITECH CITY LTD
Apeejay Business Centre,
Haddows Road, Nungambakkam,
Chennai - 600 006.
Phone : + 91 - 44 - 42316662
Mobile : + 91 - 96000 19700
: +91 - 96000 19709
Email : info@amrlsez.com Website : www.amrlsez.com
