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About Seepz
Santacruz Electronic Export Processing Zone (SEEPZ) was set up on 1st May, 1973 as uni-product EPZ exclusively for manufacture and export of electronic items in an area of 100 acres ( which was later increase to 110 acres) of land leased through the Maharashtra Industrial Industrial Development Corporation (MIDC), Andheri (East), which over the years has become a land mark of Mumbai. The objective was of (a) accelerating the progress of electronics manufacturing in India (presumably encompassing the technology transfer objective) and (b) to take advantage of the growing electronics world market (export and foreign exchange objectives).
Considering the high potential and the pollution-free nature of Gem & Jewellery Industry, the Govt. of India decided to permit manufacture and export of Gem & Jewellery items from SEEPZ during 1987-88, which soon gave a glamorous twist to SEEPZ.
With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view of attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000. SEEPZ was one of the three Export Processing Zones converted as Special Economic Zone w.e.f. 1st November, 2000.
This policy intended to make SEZs engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the Centre and the State level, with the minimum possible regulations. SEZs in India functioned from 1.11.2000 to 09.02.2006 under the provisions of the Foreign Trade Policy and fiscal incentives were made effective through the provisions of relevant statutes.
The main objectives of the SEZ Act are :Generation of additional economic activity
- Promotion of exports goods and service
- Promotion of investment from domestic and foreign sources
- Creation of employment opportunities
- Development of infrastructure facilities
- To install confidence in investors and signal the Government’s commitment to a stable SEZ policy regime and with a view to impart stability to the SEZ regime thereby generating greater economic activity and employment through the establishment of SEZs. The Special Economic Zones Act, 2005, was passed by parliament in May, 2005 and SEZ Rules, came into effect on 10th February, 2006, providing for drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments.
Jurisdictions
The SEZs located in the State of Maharashtra, Goa and Union Territory of Dadra, N. Haveli, Daman & Diu are under the jurisdiction of the Development Commissioner, SEEPZ- SEZ. The Development Commissioner, SEEPZ-SEZ is also the Zonal Development Commissioner for all SEZs in Maharashtra, Goa & UT of Daman, Diu and Dadra & Nagar Haveli.
Locations Of SEEPZ – SEZ
Located in the heart of metropolitan Mumbai, SEEPZ-SEZ has access to Mumbai’s vast commercial, Industrial and social infrastructure, its efficient communication network, a competent ancillary base, a well developed financial and credit structure, a skilled and experienced urban work force.
SEEPZ-SEZ is just 6 kilo meters away from Mumbai’s International airport at Sahar, Mumbai sea port is 30 kilo meteres away from the zone. SEEPZ-SEZ is also well connected from various parts of city by local trains and the urban transport service.
Infrastructure
Sprawling infrastructure of SEEPZ-SEZ is spread over 111 acres. The Zone provides necessary infrastructure for facilitation setting up of units in the Zone such as:
- Developed Plots
- Ready built up galas
There are 7 Standard Design Factories and 3 Gems & Jewellery Factories, 2 Towers in SEEEPZ++area & one multi-storied building Plots are leased for 30 years and built up area is leased for five years on renewable basis. Well connected network of central roads, and a Business Facilitation Centre are facility of Zone. At present, the lease rent charged for built up area is Rs. 2230/- per sq. mtr. p.a. and for plots Rs. 100/- per sq. mtr. p.a. in addition to that user charges and maintenance costs is also charged.
SEEPZ SEZ provides comprehensive services. The facilities in the Zone are as follows:-
- Bank
- ATM
- Industrial Canteen
- Central Warehouse
- MMTC
- Telephone Exchange
- Foreign Post Office
- Offshore Banking Unit
- Residential Hotel
- Authorised Dealer of Foreign Exchange
- Well equipped Fire Station.
- Crèche
- Well equipped Dispensary
- Convention Centre
- Gymnasium
As SEEPZ-SEZ is statutorily exempted from power cuts, uninterrupted power supply is guaranteed from generating stations of Western Maharashtra.
The Zone has also an assured supply of 4.6 mld. Of water a day.
SEEPZ-SEZ is a export manufacturing hub with an in-house Customs clearance facility. This enables the exporters to deliver their air and sea consignments well in time without any hassles and through simplified procedures. SEEPZ-SEZ offers unique combination of urban infrastructure, skilled labour, eco-friendly production, speedy and cost effective shipping.
SEEPZ-SEZ has a well groomed security system including a high security entrance to avoid any pilferage of duty free goods.
Supporting the philosophy of making every business process sustainable for the zone and the society at large, SEEPZ-SEZ facilities and encourages that the units within the Zone offer regular programme for skill development, to and fro transport and recreational facilities to their individual employees.
Procedures
(A) Setting up of SEZ:
The functioning of the SEZs is governed by a three tier administrative set up. The Board of Approval is the apex body and is headed by the Secretary, Department of Commerce.
The application submitted by the Developer for setting up of SEZ is scrutinised by the Development Commissioner and is forwarded to Board of Approval with the recommendation
The State Government has also to forward its recommendation within 45 days from the date of receipt of such proposal to the Board of Approval.
The Board of Approval has 19 Members. Its constitution is as follows:
| 1 | Secretary, Department of Commerce | Member |
| 2 | Member, CBEC | Member |
| 3 | Member, IT, CBDT | Member |
| 4 | Joint Secretary (Banking Division), Dept of Economic Affairs, Ministry of Finance | Member |
| 5 | Joint Secretary (SEZ), Department of Commerce | Member |
| 6 | Joint Secretary, DIPP | Member |
| 7 | Joint Secretary, Ministry of Science and Technology | Member |
| 8 | Joint Secretary, Ministry of Small Scaled Industries and Agro and Rural Industries | Member |
| 9 | Joint Secretary, Ministry of Home Affairs | Member |
| 10 | Joint Secretary, Ministry of Defence | Member |
| 11 | Joint Secretary, Ministry of Environment and Forests | Member |
| 12 | Joint Secretary, Ministry of Law and Justice | Member |
| 13 | Joint Secretary, Ministry of Overseas Indian Affiaris | Member |
| 14 | Joint Secretary, Ministry of Urban Development | Member |
| 15 | A nominee of the State Government concerned | Member |
| 16 | Director General of Foreign Trade of his nominee | Member |
| 17 | Development Commissioner concerned | Member |
| 18 | A professor in the Indian Institute of Mgmt or the Institute of Foreign Trade | Member |
| 19 | A professor in the Indian Institute of Mgmt or the Institute of Foreign Trade | Member |
Once an SEZ has been approved by the Board of Approval and Central Government has notified the area of the SEZ, units are allowed to be set up in the SEZ.
SALIENT FEATURES OF FACILITIES FOR SEZ:- Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.
- Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act.
- Exemption from Central Sales Tax (CST).
- Exemption from Service Tax (Section 7, 26, and Second Schedule of the SEZ Act).
All the proposal for setting up of units in the SEZ are approved at the Zone level by the Approval Committee. The composition of Approval Committee is as follows:-
| Development Commissioner of the SEZ | Chairman ex-officio |
| Director or Deputy Secretary to the Govt. of India, Ministry of Commerce & Industry, Department of Commerce or his nominee not below the rank of Under Secretary to the Govt. of India | Member ex-officio |
| Development Commissioner of the SEZ | Chairman ex-officio |
| Joint Director General of Foreign Trade, Mumbai | Member ex-officio |
| Commissioner of Customs or Excise having territorial jurisdiction over the SEZ or his nominee not below the rank of Joint Commissioner | Member ex-officio |
| Commissioner of Income Tax having territorial jurisdiction over the SEZ or his nominee not below the rank of Joint Commissioner | Member ex-officio |
| Director (Banking) in the Ministry of Finance, Banking Division, Govt. of India | Member ex-officio |
| Two officers not below the rank of Joint Secretary, to be nominated by the Government of Maharashtra | Member ex-officio |
| Developer of the Zone | Special Invitee |
All post approval clearances including grant of Importer-Exporter Code Number, change in the name of the company or implementing agency, broad-banding, diversification etc. are given at the Zone level by the Development Commissioner. The performance of the SEZ units are periodically monitored by the Approval Committee and units are liable for penal action under the Foreign Trade (Development and Regulation) Act, in case of violation of the conditions of the approval.
For details of the Government of India’s Policy relating to SEZs, please visit the website www.sezindia.nic.in www.sezindia.nic.in
SEZs UNDER THE JURISDICTION OF DC, SEEPZ-SEZ
- Hiranandani Builders, Powai, Mumbai.
- EON Kharadi Infrastructure Pvt. Ltd., Taluka Haveli, District Pune.
- Serum Bio Pharma Park SEZ, Hadapsar, Pune.
- Wipro Ltd., Hinjewadi Pune.
- Syntel International Ltd., District Pune.
- The Manjiri Stud Farm Pvt. Ltd., Pune.
- Infosys Technologies Ltd., Pune.
- Maharashtra Industrial Development Corporation, Pune.
- Magarpatta Township Development and Construction Company Ltd., District Pune.
- Development of infrastructure facilities
- Quadron Business Park Ltd. District Pune.
- Neopro Technologies Pvt. Ltd. Pune.
- Pune Embassy India Pvt. Ltd., District Pune.
- Maharashtra Airport Development Company Ltd., District Nagpur.
- Maharashtra Industrial Development Corporation, District Aurangabad.
- Wardha Power Company Pvt. Ltd., District Chandrapur.
- Serene Properties Pvt. Ltd., District Thane.
- Arshiya International Ltd., District Raigad.
- Wockhardt Infrastucture Development Ltd., District Aurangabad.
- Maharashtra Industrial Development Corporation, District Satara.
- Maharashtra Industrial Development Corporation, District Nanded.
- Khed Economic Infrastructure Pvt. Ltd., District Pune.
- Sunstream City Pvt. Ltd., District Thane.
- Maharashtra Industrial Development Corporation, District Satara.
Salient Features
The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include:
- Duty free import/domestic procurement of all goods (except prohibited goods) for carrying out the authorized operations.
- 100% Income Tax exemption under Section 10AA of the Income Tax Act, 1961 for first 5 years, 50% for the next 5 years and for next 5 years 50% of the profit if such profit is reinvested to the SEZ units who begins to manufacture or procedure articles or things or provide any services during the previous year relevant to any assessment year commencing on or after the 1st day April, 2006.
- Facility to setup overseas banking units. 100% Income Tax exemption under Section 80 LA of the Income Tax Act, 1961 for 5 consecutive years and 50% for next 5 years to Off-shore Banking (OBU) units.
- External commercial borrowing be SEZ units upto USD 500 million in a year without any maturity restriction, through recognized banking channels.
- Exemption from Central Sales Tax on sales made from Domestic Tariff Area (DTA) to SEZs.
- Supplies to SEZ from DTA are to be treated as exports and are eligible for all export benefit such as drawback/advance license/DFRC/DEPB.
- Refund of VAT by State Government in respect of goods procedure by SEEPZ units from within the State of Maharashtra.
- SEZ units can be set up for manufacturing, trading or service activity.
- SEZ units to be positive Net Foreign Exchange Earners
- Single window approval for State level clearances..
Jurisdiction of SEEPZ Zone
Total Operational Units in 37 SEZs and EoUs
| FY 2020-21 | Total No. of Units |
|---|---|
| SEEPZ SEZ | 299 |
| Pvt. SEZs | 574 |
| EOUs | 279 |
| Total | 1,152 |