Time limit to be fixed for SEZ approvals

NEW DELHI: In a move that could expedite clearances for specific activities by units in special economic zones (SEZs), the government plans to introduce time frames for approvals granted by the unit approval committees.

The government will specify time lines for clearances such as grant of importer-exporter code number, change in the name of the company or implementing agency, permission for sub-contracting, domestic tariff area (DTA) sales and broadbanding diversification.

Government sources told ET the move would be in line with the Centre���s effort to provide SEZ units a business environment that is hassle-free and free of bureaucratic red-tape.

While SEZs are cleared by the board of approval in the commerce ministry, all proposals for setting up units in SEZs and post-approval clearances are granted at the zonal level by the unit approval committees.

These committees comprise the development commissioner, Customs authorities and representatives of state governments, the commerce ministry and the finance ministry.

According to Export Promotion Council for EOUs and SEZs (EPCES) director general L B Singhal, time-frames for granting clearances to activities of export-oriented units (EOUs) are already in place. ���There are as many as 33 activities for EOU units for which the Centre has prescribed various time lines for granting clearances. The same could be done for SEZs,��� Mr Singhal said.

Sources said the department of commerce is expected to come up with the required guidelines soon. ���The SEZ units have sometimes complained that the unit approval committees sit on applications for various permissions and do not give any reasons for the delay. This affects their production activities and bottom lines. Prescribed time lines would make them more accountable,��� the source said.

The government has so far formally approved 462 SEZs. According to figures furnished by EPCES, exports from EOUs and SEZs in the last five years have risen almost six times, from Rs 33,647 crore to Rs 1,91,638 crore. Last year, exports from SEZs went up from Rs 34,787 crore to Rs 66,638 crore, showing a growth of 93%.