The Government of India had introduced SEZ Act in the year 2005 with a view to provide an internationally competitive environment for exports. The objectives of SEZs include making available goods and services free of taxes and duties supported by integrated infrastructure for export production, expeditious and single window approval mechanism and a package of incentives to attract foreign and domestic investments for promoting export-led growth. Under the Act, SEZ could be set up either jointly or severally by the Central Government, State Government, or any person (including a private or public limited company, partnership or proprietorship).
→ for manufacture of goods; or
→ for rendering services; or
→ for both manufacturing of goods and for rendering services; or as a Free Trade and Warehousing Zone.

Scheme Benefits & Highlights:

• Duty free import of raw materials & capital goods for development, operation and maintenance of SEZ units.
• Exemption from payment of Goods & Service Tax (GST).
• • External commercial borrowing by SEZ unit allowed up to US $ 500 million in a year
• Single window clearance for Central and State level approvals.
• No License is required for import, including second hand machineries.
• Units need to achieve positive NFE (Net Foreign Exchange).