Single-window nod for SEZs on table

NEW DELHI: The development of special economic zones (SEZ) and the process of setting up units may soon become less complicated.

The Centre will shortly hold discussions with the state governments on implementation of single-window clearance for the developers of SEZs and various units so that investors do not have to run around for approvals before starting operations.

Issues related to state-level exemptions from value-added tax (VAT) and stamp duties will also be discussed in the meeting scheduled next week.

Speaking to ET, commerce ministry officials said that while the SEZ Act and rules laid down that the development commissioner of a particular area is the empowered authority for all approvals pertaining to issues such as labour, building plans and pollution control, state governments have not yet assigned the necessary powers to the development commissioner’s office.

“It is high time states started working towards putting in place a single-window clearance system as the concept of SEZ revolves around hassle-free operations,” an official said.

The meeting between commerce ministry officials and state government representatives, scheduled for September 10, will take into account various steps taken by state governments so far to implement single-window clearance and what all still requires to be done.

The government would also hold discussions on removing the ambiguities related to financial concessions given by states to SEZ investors like exemption from payment of VAT and stamp duties.

For instance, while Andhra Pradesh allows zero-rating of VAT, which means investors do not have to pay VAT at all, other states want investors to pay VAT and then claim a refund. “It would be better if there is uniformity in the policy and all states agree to zero-rating of VAT,” the official said.

Similarly, there are different views on exemption of stamp duties on construction in the non-processing area. Some states, including Haryana, have expressed interest in imposing stamp duties in the non-processing area, albeit at a rate lower than the normal rates in the state. The Centre wants a common view to emerge on exemption of stamp duties so that all states follow the same policy in the area.