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Special Economic Zones
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Govt. of Kerala SEZ Policy
Govt. of Kerala SEZ Policy is the policy adopted for setting up of Special Economic Zones in the state of Kerala. In the year 2000, the Indian Government has incorporated the concept of Special Economic Zones. The Exim Policy of the government of the country has been amended to specify these areas as foreign territory essentially used for the purpose of trade activities, duties and tariff. Moreover, the Customs Act of 1962 has also been reframed to delineate the Special Economic Zones outside the Indian territory. The new SEZs are planned to include 1000 hectares at least and more such that they can be like integrated industrial townships equipped with self-contained facilities.
The Govt. of Kerala SEZ Policy is applicable for the development of other Special Economic Zones in Kerala, other than the Cochin Special Economic Zone, like at Kochi, Thiruvananthapuram, Kanjikode or Palakkad, Kozhikode and other parts of Kerala.
Govt. of Kerala SEZ Policy have been planned to suit the interests of the Indian state in particular. Kerala is located in the South Western section of the country, with the strategic district of Cochin very near the international maritime highway, the world’s busiest maritime highway. Also Cochin has aviation facilities like the major International Air Routes A330, G462, R457 and W15. Along with this Cochin is also not far from the economic powerhouses in the Middle East and Eastern and South Eastern Asia. From the Govt. of Kerala SEZ Policy it is denoted that the state can use this zone for the production of goods and services for export-oriented activities. The Govt. of Kerala SEZ Policy is so framed to speed up the Kerala economy along with its infrastructure to make the production of the state more export oriented for the world market. This would bring rich dividends for the state generating more wealth and employment. Under the Kerala Govt. SEZ Policy the Cochin Export Processing Zone has been transformed into an SEZ. The state government has undertaken the task to convert a Greater Cochin SEZ by including more phases of the SEZ. This will encompass areas at Cochin Port, Cochin Airport, and customs-bonded industrial areas accompanying the Airport-Seaport Highway connecting both the zones. The plan is to create an Industrial Corridor to the Cochin SEZ.
The Govt. of Kerala SEZ Policy shall attempt to develop these zones either with their own effort or with the help of public or private enterprises. For this the implementing agency of the SEZ in Kerala, KINFRA will be the main agency of the state. They will undertake the task of implementation either on its own or jointly with the private sector. For this KINFRA will acquire land and bring extensive areas under them. The Govt. of Kerala SEZ Policy, look at these public private partnerships as Special Purpose Vehicles for the promotion of SEZ. These SEZ Developers will aid in the funding, development, marketing, and maintaining the specified economic zonal areas. The Kerala State Government shall attempt to provide these SEZ Developers all facilities, which will help them to develop the SEZ and promote it within minimum possible time.
There is separate Development Commissioner for each such special economic zone to maintain and regulate all matters related to that state. The main operations of the Development Commissioner are to offer clearances in reference with various governmental statutes and regulations, to facilitate clearances that are not permitted within the SEZ, to advise the authority on issues in need of policy amendments and clarifications, to take up marketing of the SEZs in association of the SEZ Developer.
Under the Govt. of Kerala SEZ Policy in order to obtain clearances on environmental issues for the required projects from governments, some authoritative statues should be followed. The most important is the No Objection Certificates and other clearance from the Kerala State Pollution Control Board for the units to operate within the SEZs.
In order to undertake the task of constructing buildings for any industrial project the SEZs should be notified firstly as an industrial area under the Kerala Industrial Single Window Clearance Board and Industrial Township Area Development Act, 1999. As per the provisions of the Govt. of Kerala SEZ Policy, in case the area of SEZ is massive, the State Government will declare the SEZ as Industrial Township, and will allow it to operate as self-governing autonomous municipal bodies. This implies that after the clearances obtained, the SEZ area can go on without obtaining permission from Municipalities, Grama Panchayats, and Town Planning Department.
It is also stated in the Govt. of Kerala SEZ Policy that the government either on the basis of own efforts or through the SEZ shall ascertain to provide adequate water supply within the SEZ. Along with this the SEZ Developer will assure the supply of uninterrupted and better quality power at modest rates to the SEZ areas. The SEZ Developers are also responsible for the generation, distribution, transmission, and fixation of the tariff rates for the SEZ.
In this regard, the SEZ Developer may establish a Captive Power Plant to meet the needs of all consumers within the SEZ. The Kerala State Govt. SEZ Policy declares that within the SEZs the power generated shall be exempted from paying electricity duty for a period of 10 years from the commissioning date. Other mandates of the Govt. of Kerala SEZ Policy includes provisions relating to state taxes and duties, local taxes and levis, labor regulations, SI registration and Letter of Intent, registration of Information Technology units, escort services, law and order, and committee for review and development of SEZ.
The Govt. of Kerala SEZ Policy is applicable for the development of other Special Economic Zones in Kerala, other than the Cochin Special Economic Zone, like at Kochi, Thiruvananthapuram, Kanjikode or Palakkad, Kozhikode and other parts of Kerala.
Govt. of Kerala SEZ Policy have been planned to suit the interests of the Indian state in particular. Kerala is located in the South Western section of the country, with the strategic district of Cochin very near the international maritime highway, the world’s busiest maritime highway. Also Cochin has aviation facilities like the major International Air Routes A330, G462, R457 and W15. Along with this Cochin is also not far from the economic powerhouses in the Middle East and Eastern and South Eastern Asia. From the Govt. of Kerala SEZ Policy it is denoted that the state can use this zone for the production of goods and services for export-oriented activities. The Govt. of Kerala SEZ Policy is so framed to speed up the Kerala economy along with its infrastructure to make the production of the state more export oriented for the world market. This would bring rich dividends for the state generating more wealth and employment. Under the Kerala Govt. SEZ Policy the Cochin Export Processing Zone has been transformed into an SEZ. The state government has undertaken the task to convert a Greater Cochin SEZ by including more phases of the SEZ. This will encompass areas at Cochin Port, Cochin Airport, and customs-bonded industrial areas accompanying the Airport-Seaport Highway connecting both the zones. The plan is to create an Industrial Corridor to the Cochin SEZ.
The Govt. of Kerala SEZ Policy shall attempt to develop these zones either with their own effort or with the help of public or private enterprises. For this the implementing agency of the SEZ in Kerala, KINFRA will be the main agency of the state. They will undertake the task of implementation either on its own or jointly with the private sector. For this KINFRA will acquire land and bring extensive areas under them. The Govt. of Kerala SEZ Policy, look at these public private partnerships as Special Purpose Vehicles for the promotion of SEZ. These SEZ Developers will aid in the funding, development, marketing, and maintaining the specified economic zonal areas. The Kerala State Government shall attempt to provide these SEZ Developers all facilities, which will help them to develop the SEZ and promote it within minimum possible time.
There is separate Development Commissioner for each such special economic zone to maintain and regulate all matters related to that state. The main operations of the Development Commissioner are to offer clearances in reference with various governmental statutes and regulations, to facilitate clearances that are not permitted within the SEZ, to advise the authority on issues in need of policy amendments and clarifications, to take up marketing of the SEZs in association of the SEZ Developer.
Under the Govt. of Kerala SEZ Policy in order to obtain clearances on environmental issues for the required projects from governments, some authoritative statues should be followed. The most important is the No Objection Certificates and other clearance from the Kerala State Pollution Control Board for the units to operate within the SEZs.
In order to undertake the task of constructing buildings for any industrial project the SEZs should be notified firstly as an industrial area under the Kerala Industrial Single Window Clearance Board and Industrial Township Area Development Act, 1999. As per the provisions of the Govt. of Kerala SEZ Policy, in case the area of SEZ is massive, the State Government will declare the SEZ as Industrial Township, and will allow it to operate as self-governing autonomous municipal bodies. This implies that after the clearances obtained, the SEZ area can go on without obtaining permission from Municipalities, Grama Panchayats, and Town Planning Department.
It is also stated in the Govt. of Kerala SEZ Policy that the government either on the basis of own efforts or through the SEZ shall ascertain to provide adequate water supply within the SEZ. Along with this the SEZ Developer will assure the supply of uninterrupted and better quality power at modest rates to the SEZ areas. The SEZ Developers are also responsible for the generation, distribution, transmission, and fixation of the tariff rates for the SEZ.
In this regard, the SEZ Developer may establish a Captive Power Plant to meet the needs of all consumers within the SEZ. The Kerala State Govt. SEZ Policy declares that within the SEZs the power generated shall be exempted from paying electricity duty for a period of 10 years from the commissioning date. Other mandates of the Govt. of Kerala SEZ Policy includes provisions relating to state taxes and duties, local taxes and levis, labor regulations, SI registration and Letter of Intent, registration of Information Technology units, escort services, law and order, and committee for review and development of SEZ.
