Govt plans cap on SEZs

Ruling out any review of the tax and tariff concessions for Special Economic Zones, the government on Tuesday said the empowered Group of Ministers is examining various issues, including cap on number of SEZs in different categories and restructuring Board of Approvals in the Commerce Ministry.

"The number of representations on various issues pertaining to SEZs have been received and these have been placed before the empowered Group of Ministers," Minister of State for Commerce Jairam Ramesh said in the Lok Sabha.

He said the issues placed before the eGoM include cap on the number of SEZs in different categories, giving thrust to manufacturing and exports, environmental impact, prescribing maximum size of the SEZs, land used within the zones and revamping of the Board of Approvals.

The eGoM on SEZ, headed by External Affairs Minister Pranab Mukherjee could not meet since January 2007, as controversies and violent protests broke out on the issue.

"Pending further direction by the eGOM, fresh approvals for setting up new SEZs are presently on hold," Ramesh said.

However, he made it clear there were no proposals to review the tax and tariff concessions for the zones as provided in the Special Economic Zones Act 2005, which was operationalised from February 10, 2006.