Builders to extend infra access in SEZs beyond their limits

NEW DELHI: Government allowed the developers of special economic zones (SEZs) to open infrastructure facilities like schools, colleges, housing and banks to those living outside the zones.

The move is aimed at ensuring optimum utilisation of SEZs and help developers get early returns. The decision was notified by the commerce department on Friday.

The dual use infrastructure in the nonprocessing area, for use by entities in both SEZs and domestic tariff area (DTA; area outside SEZ), will not be get any exemption, drawback or concession towards construction of those facilities.

In fact, the developers will have to refund all tax concessions availed so far for building the infrastructure facilities in order to avail the dual use concession.

“The customs duty, central excise duty, service tax, and such other central levies and tax benefits already availed for creation of such infrastructure shall be refunded by the developer in full, without interest”, notification said.

The low occupancy levels in SEZs led to these facilities remaining unutilised. Developers will need to produce a ‘no objection certificate’ from the state government to avail the dual use facility. The commerce department has imposed area restrictions for dual use facilities, where housing and commercial facility cannot take more than 25% and 10% of the non-processing area respectively.