SEZs are catalysts for growth: Anil Mukim

Ahmedabad, Dec 24 (UNI) As India stands on the threshold of turning into an economic powerhouse, Special Economic Zones (SEZs) being set up in different parts of the country will play a pivotal role in attracting investments, to the tune of a staggering Rs one lakh crore and also provide employment to lakhs of people.

Addressing a seminar today on 'SEZ-Law, Policy and Taxation' at the Gujarat Chamber of Commerce&Industries, jointly organised with the Ahmedabad branch of WIRC of ICAI and Chartered Accountants Association, Ahmedabad, the joint secretary at the Union Ministry of Commerce Mr Anil Mukim said so far formal approval has been given to establish 237 SEZs and out of this 22 have become functional. The main objectives of the SEZs are generation of additional economic opportunities employment, infrastructure development, promotion of domestic and foreign investment and export of goods and services.

Referring to the ongoing controversy regarding acquisition of agricultural land and loss of income under various taxes, Mr Mukim said that most of them are misplaced. So far only 34,510 acres of land has been acquired. First a waste land is acquired, followed by land under a single crop and then land under multi-crop. These acquisition follow guidlines of the central government and at present 10 crore acres of waste land is available in the country, he explained.

At present, India's share in the world trade is only 1 per cent and to make our exports competitive globally there is an urgent need to make tax concession for SEZs, Mr Mukim opined.

Though India is planning the SEZs in a big way yet all is not rosy, Gujarat Industries Commissioner Mr Arvind Agarwal cautioned.

Mr Agarwal said that whenever there is a talk of SEZ a comparision is made with China. Chinese model is an unique legal model. In India, 90 per cent of the SEZs are owned by the private sector, while in China it is fully state owned and public funded, he pointed out.

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