Resource detail

The State Policy for SEZs (Special Economic Zones) 2009 covers all the approved SEZs and fresh approvals in future, by the Board of Approval of SEZ/SHLCC (State High Level Clearances Committee), in the State of Karnataka. This Policy came into force with effect from 28 February 2009 and shall govern the development, operation and management of SEZs and the SEZ units to be established therein. Proponents of SEZs can utilize their own land including joint development/lease land or acquire the required land by following the procedures laid down under this Policy.

The Developer or Co-developer is encouraged to develop, construct, install, operate, manage and maintain any or all of the following infrastructure facilities. (i) Provision of roads and bridges; (ii) Generation, transmission and distribution of electricity; (iii) Water extraction, treatment, transmission and distribution; (iv) Provision of minor port and related services; (v) Provision of gas distribution network; (vi) Provision for communication and data network transmission; (vii) Waste water treatment and solid waste management; and (viii) Any other services essential for smooth operations of SEZ units. The Developer or Co-developer may collect reasonable user charges for the facilities created.

Several fiscal benefits are offered to Developer, Co-developer and Units operating in the SEZ. For SEZ developers and Co-developers (i) all purchases excluding purchase of petroleum products from domestic tariff area for authorized operations of entire area in SEZs shall be exempted from State and local body taxes or levies or cess; (ii) exemption of stamp duty and registration fees for registration of land and loan/credit documents; For SEZ units (i) All purchases excluding purchase of petroleum products by SEZ units located in the processing areas from domestic tariff area or SEZ area shall be exempted from State and local body taxes or levies or cess such as Sales Tax, VAT, Entry Tax and special Entry Tax; (ii) Exemption of electricity duty or taxes on sale, of self generated or purchased electric power for use in the processing area of SEZ; (iii) Exemption of 1% Labour Welfare Cess on construction cost incurred by the Unit.

All matters pertaining to SEZs in the State will be coordinated by 'Development Commissioner(s)' or other authorities appointed by the Government of India for the SEZ under section 11 of the SEZ Act, 2005.