EPZ in West India

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The EPZ in West India comprises of the Kandla Free Trade zone and the Santa Cruz Electronics Export Processing Zone. The EPZs had been developed to boost the Indian economy through the provision of tax holidays offered in various sectors, inflow of FDI, and so forth.

The EPZs in India became popular on account of a number of reasons including:

Exemption from the payment of customs duty on the import of industrial equipments

Exemption from the payment of Corporate Income Tax for a continuous period of 5 years from the date of formation of the unit

Gain of Trade or Export House Status through the integration of the FOB values of the export items produced by a unit situated in an EPZ with that of the parent unit of the same company located in the DTA
Freedom from the requirement for import licenses
Availability of private bonded warehouses for re-export, reconditioning, import as well as marketing of goods
Subcontracting activities with regard to manufactured goods
Goods supplied from DTA are exempted from Excise duty
Tax holidays on import of commodities including raw materials, consumer goods as well as capital goods
The industries within the EPZs are offered the advantage of choosing their desired location on the fulfillment of the required
parameters laid down by the state governments of the individual states
Proper implementation of Export-import Policy
The manufacturing of goods or any other activity performed specifically for the units in DTAs

The Kandla Free Trade Zone was established in the year 1965 at Ghandhidham, in the city if Kutch. It was formed to provide advanced warehousing facilities, low cost skilled labor, transportation facilities, and to offer various tangible and regulatory services to enhance the efficiency of the units within the zone as well as lower their costs of operation. The list of other free trade zones include Haldia Free Trade Zone, Kochi Free Trade Zone, Noida Free Trade Zone, and Santa Cruz Free Trade Zone. The Kandla Free Trade Zone is the first EPZ in West India. The zone consists of export houses only. The amenities provided by the Kandla Free Trade Zone includes:

Standard Design factory Buildings
Hassle free and continuous supply of Power
Single Window Clearance
Developed Land
Water supply
Cost Effective Skilled Labor
Incentives offered by the state and central government of India

The other EPZ in West India i.e. the Santa Cruz Electronics Export Processing Zone was created in the year 1974. It is located at Andheri (East) in the city of Mumbai. The amenities offered by the Santa Cruz Electronics Export Processing Zone includes:

Round the clock water connection
Efficient and Uninterrupted Power Supply
Competent Ancillary Base
Cost Effective Skilled Labors
Highly developed Credit Facilities
Well developed Communication Network
Single Window Clearance
Developed Land

Meaning of Export Processing Zones