Single-window clearance for SEZs soon

NEW DELHI: Greenfield special economic zones (SEZs) could turn out to be the first real providers of the much-touted ‘single-window’ system of government clearances. The commerce department is working on detailed plans to set up fast-track clearance systems in all greenfield SEZs which would perform all statutory and regulatory functions. After consultations with the finance ministry, green signal has been obtained for setting up modern administrative offices in five integrated SEZs and three sector-specific or port-based SEZs, senior officials of the commerce department said.
It is understood that the offices which will act as the ‘single-window’ would have 26 employees in the case of integrated SEZs and 10 employees in the case of port-based or sector-specific SEZs. These establishments would operate on a lean structure, the sources said. Unlike other government offices, these establishments would avoid elaborate secretariats and function on a ‘officer-centric’ system of clearances. The primary aim is to ensure speedy clearances so that SEZs can pick up quickly, the sources added. The establishments for greenfield SEZs will be different from that of the existing SEZs which were once functioning as export processing zones (EPZs). The administration for converted EPZ will continue to be run by respective development commissioners.
The ‘single-window’ proposed for greenfield SEZs will have the authority to provide most routine clearances. These offices would be manned by officials deputed from various government departments including customs, excise and the directorate general of foreign trade (DGFT), apart from new recruits where necessary. Since greenfield SEZs are expected to be promoted by the private sector on its own or in partnership with state governments, the establishments set by the central government would not get into issues like maintenance or development of infrastructure facilities. These offices will restrict themselves to clearances and perform regulatory as well as statutory functions, the sources said.
The SEZ scheme was announced in April 2000 and 21 greenfield SEZs have been cleared during the past three years. Conceived as engines of export growth during the medium-term, these zones are supposed to boost exports by providing ‘hassle-free’ environment to the domestic industry. Investment in SEZ development is expected to be huge and the progress of this scheme has been sluggish due to cumbersome procedures for tax exemption.