Union inter-ministerial Board of Approval (BoA) on 28 April 2016 approved the proposal of Infosys to set up an IT/ITeS special economic zone (SEZ) in Bengaluru in an area spread over 4 hectares.
Highlights of the decisions of the BoA
• The Board decided to grant formal approval to the proposal as the Infosys possesses the land by itself. It also extended the time limit to nearly around 20 developers to complete their projects.
• The developers who got the time extension include Mayar Infrastructure Development for a biotechnology SEZ in Haryana, Wipro for IT SEZ in Karnataka and Vedanta for its sector-specific SEZ for manufacturing and exports of aluminium in Odisha.
• It also approved application of Unitech Realty Project for change of name of the developer to Candor Gurgaon One Developers and Projects and also changes in shareholding pattern of the company.
The approval is subject to certain conditions such as:
• The seamless continuity of SEZ activity with unilateral responsibilities and obligations for the altered developer entity.
• The complete set of financial details relating to change in equity or merger, demerger, amalgamation or transfer in ownership etc should be furnished to Member (IT), Central Board of Direct Taxes (CBDT) which is a department of Revenue and to the jurisdictional authority on an immediate effect.
About Special Economic Zones (SEZs)
• SEZs are export hubs that contribute about 23 per cent to the India’s total exports.
• Exports from such zones in 2014-15 stood at Rs 463770 crore rupees compared with 494077 crore rupees in 2013-14.
• The Special Economic Zones Act, 2005 was passed by Parliament in May 2005 which received Presidential assent on the 23 June 2005.
• It is a specifically delineated duty-free enclave and deemed to be foreign territory for the purposes of trade operations and duties and tariffs.
• The main objectives of the SEZ Act are:
(a) generation of additional economic activity
(b) promotion of exports of goods and services;
(c) promotion of investment from domestic and foreign sources;
(d) creation of employment opportunities;
(e) development of infrastructure facilities.
Now get latest Current Affairs on mobile, Download # 1 Current Affairs App
When: 28 April 2016