But contentious areas like special economic zones, capital gains and Ulips may see changes
The government said on Monday it expected an investment of Rs 22,500 crore (Rs 225 billion) over the next five-six years in a proposed Special Economic Zone for manufacturing renewable energy equipment.
"If the tax holiday is withdrawn, STPIs will lose the level-playing field vis-a-vis special economic zones. We have recommended that the government either withdraw the tax holiday to SEZs or continue the incentive to IT companies," an official with knowledge of the deliberations told Business Standard. STPIs enjoy direct tax exemption under sections 10A and 10B of the Income-Tax Act, 1961. The benefits are scheduled to expire on March 31, 2009.
Agriculture Minister Sharad Pawar on Thursday favoured a compensation policy that ensures adequate return to farmers for giving up land holding rights in favour of any upcoming special economic zone project.
The Mukesh Ambani-controlled Navi Mumbai SEZ Pvt Ltd has been charged with indulging in illegal land-filling activity by the tehsildar of the Panvel taluka. Navi Mumbai SEZ is developing a Special Economic Zone over 2,000 hectares in association with Cidco, the Maharashtra government's industrial and township development arm. When contacted, D L Kedare, the tehsildar of the Panvel taluka, said the machinery at the two sites (Ulve and Roadpalli) has been confiscated.
Hiranandani is planning to set up a 250-acre multi-services SEZ in Hyderabad. They have tied up with city-based Lahari Infrastructure Limited, in a 50:50 joint venture.
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.
The decision was taken at a meeting of the Board of Approvals held at New Delhi.
If approved, many proposals will have a significant impact on the SEZ policy, which came into force in February 2006. A crucial finance ministry proposal -- to be discussed by the group -- is imposing an export obligation in excess of 50 per cent on developers and units that will be eligible for duty and tax benefits.
Government said on Tuesday it was commited to Oil and Natural Gas Corporation's mega investment plans in petrochemical projects and special economic zone at Mangalore and there was no going back on it.
The country's largest real estate player, DLF, on Friday said it has approached the government for surrendering four of its IT-ITeS notified special economic zones (SEZ).
Genpact opens offices in Kolkata on 700,000 sq.ft of land and plans to employ 7000 people.
The Centre cannot de-notify three special economic zones that have been notified in Goa, but can cancel others following the state government's decision to scrap such zones, Commerce Secretary Gopal Pillai said on Wednesday.
For a direct indication of the premium attached to efficiently-run ports in India, one need look no further than the recent stock market listing of Mundra Port and Special Economic Zone.
Tata Consultancy Services, Infosys and Essar were among 17 aspirants, who were granted in-principle approval by the government on Monday for setting up Special Economic Zones.
'A cursory glance at India's SEZs suggests they were not nearly as well located' as compared to China, it in its World Development Report 2009. It added that 'poor location is the main obstacle to success.' In 2007, SEZs were approved in the coastal states of Andhra Pradesh, Gujarat, Maharashtra and Tamil Nadu, as well as in the interior states of Haryana, Punjab and Rajasthan, the report said. 'Even in the coastal states, many SEZs are not along the coast,' it said.
Anti-Special Economic Zone agitation in panaji on Friday got celebrity support with noted singer Hema Sardesai joining the day-long hunger-strike by Goa's Movement Against SEZ. Goa's Movement Against SEZ, an umbrella organisation of NGOs, individuals and political parties, including BJP opposing setting up SEZs in the state, has camped just a km away from main venue of the International Film Festival of India.
Releasing a report of public hearings conducted in various SEZ areas in the state, a member of the group, Professor Shanmugam Velayutham of the Chennai-based Loyola College, said land for the purpose of SEZ was 'being acquired from farmers' and handed over to big business houses, at the 'expense of the former's livelihood.' There was a danger of some real estate mafia exploiting the situation to secure some land for their business.
For the first time since its inception in 2006, the Board of Approval on special economic zones in its next meeting in March will take up a proposal from a developer to merge these tax-free industrial enclaves for exports.
The Department of Commerce is preparing guidelines for setting up single-window clearance systems in states for special economic zones (SEZs). he move comes after a recent review by the department, in which it was found that the SEZ developers were facing problems in getting approvals in many states.
Since the SEZ Act was notified in February 2006, 22 SEZs have been up and running. In the last financial year (2006-07), these SEZs collectively exported goods worth Rs 33,000 crore (Rs 330 billion) , roughly 6 per cent of India's total exports of Rs 5,71,641 crore (Rs 5716.41 billion). Officials also pointed out that 52,000 people have found employment in the new SEZs set up after 2005.
Mukesh Ambani-promoted Mumbai Special Economic Zone Company (MSME) has claimed a rehabilitation package drafted by it is better than the one cleared by the government.The MSEZ package offers many attractive monetary benefits and career opportunities.
Having completed the country's largest initial public offering of $2 billion (about Rs 8,200 crore), DLF Chairman K P Singh is getting ready to raise a similar amount in Singapore.
India continues to be an attractive foreign direct investment destination to foreign investors despite controversies over special economic zones, a global investments expert said in New Delhi.
"We will learn from their experiences of becoming crorepatis," he said. Kalbhairva also intends to talk to financial institutions for assistance and is even planning an initial public offer.
Senior Shiv Sena leader Manohar Joshi courted arrest at Belapur on Thursday along with party workers as part of the 'jail bharo andolan' to protest the Mahamumbai special economic zone of Reliance group in Raigad.
The Tamil Nadu government on Monday entered into a joint venture with Hyderabad-based GMR Infrastructure Ltd to set up a multi-product Special Economic Zone in the state's Krishnagiri district at a cost of Rs 2,300 crore (Rs 23 billion).
Mukesh Ambani and Anand Jain promoted Mumbai SEZ Ltd has suspended its land acquisition for the MahaMumbai special economic zone in coastal Raigad for an indefinite period.
Offers 2,000 acres in Pune's Saswad taluk.
The Tamil Nadu government on Friday signed a memorandum of understanding (MoU) with Hyderabad-based GVK Group to set up a Rs 1,500-crore (Rs 15 billion) multi-products special economic zone in 3,000 acres in Perambalur district.
Exports of jewellery from India have gone up 32 per cent in the last two months ended May thanks to increasing demand and sale diamonds abroad.
National Association of Software and Service Companies advocated the creation of Special Economic Zones
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