Special Economic Zones to meet on September 9, 2011

The Board of Approval (BoA) for Special Economic Zones (SEZs), headed  by commerce secretary  Mr,  Rahul Khullar is scheduled to meet on 2011, September 9 to discuss matters like setting up of new such enclaves in the country.

The 19-member inter-ministerial BoA in its last meeting on July 22 gave extra time to 45 SEZ developers to execute their projects and allowed realty major Parsvanath group to withdraw its six SEZ projects in different states.

Developers who got more time include Rahejas, Mukesh Ambani-promoted Navi Mumbai and GP Realtors.

Several of the SEZ notified projects are grappling with the problems of land acquisition even as they face uncertainty over the tax regime.

The SEZs which were touted as major vehicles for investment and export promotion were given a host of tax exemptions under a special SEZ Act of 2005.

Exports from 143  tax  free enclaves grew by  23% during the first quarter of 2011-12 to Rs 72,255 crore over the same period last year.

Under the law, incentives for SEZ units include 100% income tax exemption on export profits earned for the first five years, a 50 per cent for the next five years and another 50 per cent exemption on re-invested profits in the following five years.
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