Page 11 - issue 26
P. 11

In The News                    11

         Investment,   promote    exports    declaration  on  recommendation  of   •Description of proposed activities;
         &  industrialization;  (2)  serve  as   the Authority.Development of SEZ can   •Proof  that  project  constitutes
         “pressure  valves”  to  alleviate  large   be done in 3 ways. It can be SEZA own   an  investment  compatible  with
         scale  unemployment,  (3)  support   initiative,  a  Public-Private  Partnership   approved detailed master plan of SEZ
         wider  pilot  reforms,  (4)  act  as   arrangement  or  an  Independent   •A  business  plan  covering  class  or
         experimental   laboratories.   They   Developer.                        kind  of  goods;  raw  materials  to  be
         also  create  jobs  and  facilitate  for                                used; target markets with percentage
         technology transfer.                The developer has responsibility once   breakdown
                                             they  have  been  approved  by  the   •A  financial  plan  showing  sufficient
         Special  Economic  Zones  Regulations   local  Authority.  This    Includes    but   capitalization and access to adequate
         Act  was  signed  by  the  Minister  and   are not limited to Iimplementing  SEZ   debt financing
         published  on  21st  June  2019  for   development  plans  in  accordance   •Where  the  applicant  wishes  to
         immediate  implementation.  These   with  approved  master  plans  and   apply  for  Incentives,  a  statement
         regulations  cover  establishment,   Development  Agreement;  Develop  in   establishing  that  100%  of  the
         development  and  management  of    commercial  manner;  in  accordance   applicant's annual production or sales
         SEZs  in  line  with  the  SEZ  Act  and   with Act and consistent with long-term   except in the case of derogation, will
         make provision for licensing and rules   sustainable  economic  development   be exported
         governing the zones.                goals  of  the  Authority;  Adhere  to   •Time   schedule   for   design,
                                             performance requirements of phased   construction  and  activation  of
         SEZs  can  be  Established  on  public   development schedule of the SEZ ;Pay   applicant facilities
         or  private  land.  A  proposal  can  be   fees and taxes due to the Authority or   •Number  of  employees  and  skill
         initiated  by  authority  or  outside   other  authority;  Maintain  company   levels to be employed
         party. These proposals also undergo   books, records, accounts and financial   •Environmental  impact  assessment
         different phases/offices before being   statements  ;Obtain  prior  approval   where applicable
         authorized.                         of  the  Authority  when  transferring   •Any  other  information  as  required
                                             occupancy rights with respect to land   by the Authority
         Authority-  Submits  proposal  to  the   and other assets and also comply with
         Local  Authority  for  review  to  be   all other obligations.          There  are  investment  rules  that
         decided  upon  within  60  days  and                                    investors  in  SEZ  should  adhere
         receives and assesses proposal from   Investors in SEZs                 to  and  uphold.  These  includes
         outside party before recommending                                       Notification  to  Authority  in  the
         to Local Authority.                 The  following  business  activities  and   event  of  changes  to  information,
                                             services  may  be  located  in  an  SEZ   discrepancies  noticed,  maintenance
         Outside Party -Submits  proposal    (eligible for Incentives): Agro business   of  records  and  accounts.Rules  also
         to  Authority  for  preliminary  review   activities,  Manufacturing  activities,   address national treatment accorded
         to be decided upon within 14 days.   Warehousing,  distribution  or  logistics   to  foreign  entities  in  the  SEZ  equal
         In  addition  to  proposal  submits   services  and  Internationally  traded   to  that  accorded  to  nationals  (no
         application  for  developer  license   services.                        domestic ownership requirements or
         and/or zone management licence as                                       minimum capital requirements when
         required.                           Any  person  wishing  to  carry  on   reinvesting profits).Prohibition of sale
                                             business  in  an  SEZ  shall  apply  to  the   of land without Authority’s consent.
         Local Authority -Reviews  proposals   Authority for an investor license.  Interestingly Acquisition of Land and
         submitted  by  the  Authority  within                                   Commencement  of  construction  of
         60 days of submission. It undertakes   There  are  main  investors  and  those   real estate in SEZ within 60 days after
         consultation  with  affected  persons   providing  support  services  to  main   issue of licence and start construction
         where necessary. The local Authority   investors.Those  providing  support  in   and business activities no later than
         then  Approves  or  rejects  proposals   the form of restaurants, grocery stores   24 months after licence is issued.
         and informs the Authority of decision   etc.  will  not  qualify  for  incentives,
         or recommends modifications         but  will  apply  for  license  to  operate   SEZA is also a one stop shop for all
                                             businesses in the zone.             these  SEZ  requirements  and  have
         Minister - Declares SEZ in accordance                                   made  it  easy  for  foereign  investors
         with Section 29 of the Act following                                    to  apply  for  everything  under  one
         approval  of  proposal  by  Local   Application to be an investor includes:  roof including permits and company
         Authority.He/She   may    revoke                                        registration.

                                                         Issue 26  Feb-Mar  2020
   6   7   8   9   10   11   12   13   14   15   16