'SEZ committee can recommend incentives for industries'

The Special Economic Zone (SEZ) Development Committee can recommend slew of incentives to industries in the SEZs even though it lacks teeth to announce the incentives on its own.
The government has already issued formation order to form the committee. The committee will formally come into being once the order is published in the Gazette.
"The committee will recommend the government to provide facilities such as subsidy on tax, making warehouse available to the industries, and VAT waiver on raw materials consumed by industries inside the SEZs,” reads the final copy of formation order that will be published in the Gazette soon.
As per the order, the committee, which is chaired by secretary at the Ministry of Industry, will also suggest the government to refund VAT paid while buying machineries by export-oriented industries in SEZs. “It will also request the government to waive off customs duty for the import of three vehicles for export-oriented industries,” reads the order.
Though the formation order lacks the teeth to settle labor issues in SEZs, it authorizes the committee to foster friendly relationship between the management and the workers.
Once the order is issued, the committee will provide one-stop services to entrepreneurs willing to open industries in SEZs.
The SEZ Bill has three principles: incentives to industries, one-spot services and labor flexibilities in the zones. The formation order gives the committee legal authority to work on only one principle - provide one-spot services to industries.
“The committee can only recommend the government to provide incentives to industries and facilitate in resolving labor issues,” an official at MoI told Republica.
As per the formation order, the committee will work in coordination with local administration and police to provide security to industries in SEZs. “The committee will have the authority to regulate industries in SEZs,” reds the order.
According to the order, SEZs will have facilities like banking, postal, health, educational and recreation, among others.
“The industries will have to go through a competitive selection process to get space in SEZs,” states the formation order.