Land acquisition for special economic zones is stuck because of a year-old directive by the Empowered Group of Ministers that bars state governments from carrying out compulsory acquisition of land for the zones.
On July 21, trade ministers from nearly 50 countries will converge at Geneva to finalise proposals on agriculture and non-agricultural market access (Nama) which are part of the Doha Round of world trade talks. World Trade Organisation Director General Pascal Lamy tells Business Standard why the ministerial is crucial.
The seven government-owned special economic zones across the country are likely to be given autonomy, resulting in greater financial flexibility for these tax-free enclaves. The move will help these zones compete with the private sector SEZs, which are attracting investment from companies.
Exports double, while jobs and investments show robust growth rate. The commerce ministry has projected exports from the zones at around Rs 1,25,950 crore (Rs 1,259.5 billion) in 2008-09, growth of 89 per cent over the previous year.
Even if our findings are not to the liking of our sponsor groups, we always stand by them, Icrier Director and Chief Executive Rajiv Kumar tells Business Standard. The study took a long time to come and the perception is that the data have been 'fixed' to arrive at tailor-made conclusions that suit the government (the sponsor of the study).
The annual supplement to the Foreign Trade Policy, which will be released on Friday by Commerce Minister Kamal Nath, is likely to announce a host of measures for exporters to help them tackle the appreciation in rupee against the dollar as well as to achieve an export target of $200 billion for 2008-09. Significantly, this is the last year of the Foreign Trade Policy, which was introduced after the UPA government came into power in May 2004.
A revamped Electronic Data Interface system and easier norms for the Accredited Clients Programme are some features likely to be introduced to reduce the transaction time and costs of exporters. Some of the measures may figure in the annual supplement to the Foreign Trade Policy, which is being released on Apr 11. ComMin officials expect the new Electronic Data Interface System to become operational by the end of this fiscal. Exporters will have to submit lesser documents.
On Tuesday, in the midst of the government's multi-pronged crackdown on inflation, the cement producers had announced a rise in prices. The export ban will augment domestic availability while the cheap imports from Pakistan will soften prices.
The buoyancy in exports, which are expected to grow 23 per cent to around $155 billion in 2007-08, does not convey the real picture.Commerce ministry data show that the sectors with higher import content like petroleum products, gems and jewellery, engineering goods, pharmaceuticals, chemicals, and agriculture have provided the momentum for growth in exports, which have been hit by the appreciation of the rupee and infrastructure bottlenecks.
The price surge at Jhajjar has more to do with skyrocketing land prices near the SEZ site plus a recent rumour that the Haryana government may increase the minimum price for land acquisition to more than Rs 55 lakh (Rs 5.5 million) per acre.
The other two denotification routes are amendment of the SEZ Act through Parliament and through a presidential ordinance. The latter has been ruled out since Parliament is in session and there is nothing to stop the developers of the three SEZs from going to court if the government waits for the session to end. An amendment of the SEZ Act will not only need approval from the Commerce Ministry, but may also provoke political opposition from the Congress itself.
In one of its many arguments, North Block has maintained that direct tax exemptions may be viewed as a subsidy by importer countries, which may then impose countervailing duties on exports from Indian special economic zones. The issue is pending with the empowered group of ministers on special economic zones headed by External Affairs Minister Pranab Mukherjee.
Finance ministry opposed to exemptions in principle: Official.
The $100-million fund, which has the option to raise a further $200 million, will benefit small and medium enterprises engaged in defence production.
Commerce Ministry has sought clarification from Finance Ministry over calculation of profits from SEZ units.
The Special Economic Zone (SEZ) Act of 2005, which completed two years on February 10, 2008, has facilitated a 200 per cent rise in exports from these zones during the period, and has led to an incremental investment of Rs 70,416 crore (Rs 704.16 billion).
The European Union has drawn up an initial negative list of 416 tradeable items on which it does not intend to provide duty cuts as part of the proposed free trade agreement with India
Move aimed at reducing tax exemptions ahead of Budget 2008-09.
The commerce ministry has endorsed India Inc's stand against signing a free trade agreement (FTA) with China until it becomes a market economy that follows transparent pricing of manufactured goods and services.
Realty FII norms, which were recently put outside the purview of Press Note 2 (2005), are vague about pre-IPO investments.
© 2025 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances