Sezs board to lay down guidelines: pillai

New Delhi, Sep 20 (UNI) The Board of Approvals for special economic zones (SEZs) will shortly lay down new guidelines governing the development of such zones, Ministry of Commerce and Industry Special Secretary Gopal K Pillai said today.

Mr Pillai spoke on the controversies that have come up in the wake of the Government's SEZ Policy, announced last year. One pertains to the projected loss of tax of around Rs 90,000 crore over the next few years.

''The Ministry has analysed this and feels that the net benefit to the government through indirect taxes will be Rs 45,000 crore,'' said the minister at the India SEZ Summit 2006 organised by CII here.

Ministry of Commerce and Industry Joint Secretary Anil G Mukim, said SEZ-based industries are expected to employ half a million people by December 2007 and invest Rs 100,000 crore, including Rs 25,000 crore of FDI. In 2005-2006, the 18 operational SEZs exported Rs products worth Rs 22,500 cr and employed 1.23 lakh people.

The proposed guidelines will cover the percentage of processing and non-processing areas in SEZs, development of infrastructure within SEZs and the approvals process, Mr Pillai said.

The guidelines will not tie developers down as they have other statutory compliances such as approval of their Environment Impact Assessment, approval of the master plan by the state authority concerns and have to follow town planning guidelines.

SEZs provide world class infrastructure to attract investment, both local and foreign. Tax concessions are needed for the development of infrastructure and attracting investments.

It is presumed that SEZs will promote exports, but should not India be setting up world class infrastructure to manufacture for the domestic market as well.

The day-long consultation on SEZs also had speakers from Industry both developers and the user-sector and also the state governments from Andhra Pradsh, Maharashtra-Uttar Pradesh, Rajasthan, Tamil Nadu.

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