UP announces new SEZ policy

Lucknow, Aug 1 (UNI) Uttar Pradesh government today announced to amend the existing Special Economic Zone (SEZ) Policy to pave way for establishing high-end SEZs in different parts of the state.

A decision to this effect was taken by a cabinet meeting chaired by Chief Minister Mulayam Singh Yadav here.

With this, the state announced the 'New SEZ Policy, 2006' in concurrence with the central SEZ Act, 2005 which would override the 2002 SEZ Policy of the state government.

Under the new policy provisions, the government has decided to do away with the bidding system and introduced the policy of open proposals.

The government has placed SEZs in three categories: in category A, Noida and Greater Noida would be the nodal agencies for setting up SEZs in that area. Category B would deal with new SEZs coming up in areas, where there are Development Authorities. Category C would deal with SEZs, which would come in areas where no development authorities exist. In such areas, UP State Industrial Development Corporation (UPSIDC) would be the nodal agency.

State Industrial Development Commissioner (IDC) Atul Kumar Gupta said the new policy would help attract more investments in public and private sectors.

The SEZ developer would get stamp duty exemption on first transaction, while the SEZ itself would get exemptions in levies and other duties for raw material required to set up the infrastructure.

Labour laws would be simplified and the powers of Labour Commissioner delegated to the development commissioner to deal with labour issues. An official from the labour department would also be deployed at the proposed SEZs.

A provision of 'single window clearance' has been provided for the various units, that would be set up in the SEZ. Various government departments would ensure such a clearance is provided to the units.

The SEZ would be created on the basis of private participation, public sector participation and private-public participation (PPP).

The units in SEZs would be provided with 10 yrs' electricity duty from the date they start production.

Under the Electricity Act, 2003, the SEZs would be allowed to generate, transmit and distribute power within the respective zone.

This would help the units get maximum utilisation of power without depending on facilities provided by power distribution companies.

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