SEZ Presentation

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WELLCOMEWELLCOME


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PROJECTPROJECT

ONON

SEZSEZ(SPECIAL ECONOMIC ZONE)(SPECIAL ECONOMIC ZONE)


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We are thankful PROF.HARNESH SIR, forproviding us with such an interesting topic which

was truly informative.

We are thankful to you for providing us guidanceand giving us sufficient amount of time to

understand the topic well.

We hope that we have reached your level of

expectation.Once again our sincere thanks to you and for

your support.


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:INTRODUCTION::INTRODUCTION:--SEZ means Special Economic Zone isone of the part of governments policies in India. Aspecial Economic zone is a geographical region that

economic laws are more liberal than the usual economic

laws in the country. The basic motto behind this is toincrease foreign investment, development of

infrastructure, job opportunities and increase the income

level of the people.

The SEZ was first established by theChina for increasing investment, job opportunities and

technical knowledge and bring about certain tax reforms.


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:CHARACTERISTICS:-Government have developed SEZ by investing fundsto create zone infrastructure and marketing these

zones internationally. In the Indian SEZ model, states

are being encouraged to take these choices while thecentral government is largely focusing on policy

making and facilitation. Since much of the funding for

SEZs is envisaged through private sector / banks,

soundness of the business model, competitivedifferentiation and market forces would be the key

determinants of bank ability of these projects.


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-:FEATURES OF SEZ:-

Duty-free imports of capital goods and inputs forproduction for Export.

Liberal access to foreign exchange.

Encouragement to FDI. Simplified, one-stop approvals.

Generous tax concessions esp. in early years.

Flexible Labour Laws.

Limitations on sales within the country. Better Infrastructure (Power, Transport &

Communications).


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-:ILLU R ION:-

The best illustration can be none another than

BADDI which is located 55km to 60km or 2hrs

away from Chandigarh were all the companiesstarting from FMCG to Consumer Durable goods

are been situated also having there factory

outlet in particular companies.


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Simplified procedures for development, operation,

and maintenance of the Special Economic Zones and

for setting up units and conducting business in SEZs ,

Single Window clearance on matters relating to

Central

as well as State Governments ,

Simplified compliance procedures and documentationwith an emphasis on self certification ,

Single window clearance for setting up a unit in a

Special Economic Zone


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-:FACILITIES AND INCENTIVES TO

SEZ:-

Exemption from minimum alternate tax under

Section 115 JB of the Income Tax Act.

Exemption from dividend distribution tax underSection 115O of the Income Tax Act.

Exemption from Central Sales Tax (CST).

Exemption from Service Tax . Exemption from customs/excise duties for

development of SEZs .


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THE NEED FOR SEZ AND

GOVERNMENTS POLICY:-

To increase exports.

SEZ can be set up by private, public, joint

sector or by the state government.

Convert Export processing zone(EPZ) to SEZ.


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ADVANTAGES OF SEZ

Growth and development.

Attracts FDI.

Exposure to technology and global markets. Increase in GDP and economic model.

Employment opportunities are created.


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DI DVAN AGES OF SEZ

Exploitation of labours.

Loss of revenue for Government.

Fertile lands being used for establishingindustrial units.


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EVALUATION OF SEZ

Determine how

resources are used.

Whether Employment

opportunities are

created.

Cost outweighs the

benefit of SEZ.


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WHY INDIA?I ir t I i I -I ES success st r ,

sever l t er l cati s have been presented as alternate optionsfor offshore outsourcing. However, feedback received from

several MN s having multi-countr operations as well as

syndicated analysis comparing the various sourcing locations

has revealed that India continues to offer and deliver the best

bundle ofbenefits sought from global sourcing.With significant potential still untapped, it is

expected that the global sourcing phenomenon will continue to

expand in scope, scale and geographic coverage. As global

delivery matures, multi-location strategies will become the norm

and most sourcing destinations, including emerging locations,

will grow in si e. Building on its existing strengths, India will

remain the leading destination and will continue to play an

important role in most global sourcing strategies.


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--::INFRASTUCTURED SCENARIO:INFRASTUCTURED SCENARIO:--

Credit for India

s rapid growth in the Isoftware services and I ES/BPO domains must go in part to the

availability of a robust infrastructure (telecom, power and Roads)

in the country. Relevant telecom facilities are an important pre-

requisite for the success of the software industry and over the

years, the Government has taken steps to ensure that telecomremains a priority area.

Similarly, regular, reliable, uninterrupted

power, is a major necessity for running I software and services

businesses, and has also received substantial attention from the

Government. Recent steps to privati e the distribution of power

and bring in greater efficiencies and customer centricity in the

market, have been welcomed by the ICT industry.


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DEVELOPMENT OVER THE YEARS

The Special Economic Zones Act, 2005 was passed bythe Parliament in May, 2005. The Act came into effecton February 10, 2006.

Out of the 234 formal SEZ approvals given till date The employment projected in the 63 SEZs notified so

far is over 1,575,452 additional jobs.

Creation of IT Infrastructure is being given emphasis

so that Industry can utilize this infrastructure formodernization to increase productivity


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EMERGING CHALLENGES

Taking out the agricultural land. Farmers are paid misappropriate

money. Arable land is being used for non

agricultural propose. Supply chain management problem.

Unbalanced growth. It may be expensive but are also

extremely important.


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HARMONY

Public sector , private sector and

government work in harmony.


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:-CONCLUSION:-

SEZ can become a dangerous tool.

A well defined strategy required for SEZsshould be successful.

SEZ appeals to most of the developedcountries.


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SEZ Presentation

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