SEZs Garhi Harsaru

The State has received 72 proposals for setting up Special Economic Zones (SEZs) with an investment of more than Rs.175000 crores and employment potential for more than 20 lakh persons. 49 proposals have been granted in principle/formal approval by Government of India. During the year 2006-2007 (upto December, 2006), 65 SEZ proposals were received with an investment of Rs. 166238 crores and employment potential for 1600000 persons.

S. No. Prominent SEZs coming up in Haryana Area in Hectares 1 Reliance Industries Limited at Gurgaon & Jhajjar 10000 2 DLF Universal Limited at Gurgaon 8097 3 DLF Universal Limited at Ambala 1012 4 Unitech Commercial Limited at Kundli 4000 5 D S Construction Palwal (Faridabad) 5000 6 Reheja Haryana SEZ Developers, Dharuhera 2000 7 European Technology Park 200 8 Nanocity Panchkula 11138 9 Petrochemical Hub at Panipat 2000

A. Fiscal Benefits to the Entrepreneurs in SEZs in Haryana :

SEZ Units provided income tax exemption on export profits from date of commencement of operations

1st 5 years - 100% exemption Next 5 years - 50% exemption Next 10 years - 50% exemption upon reinvestment of profits

Reduced input costs as imports exempted from customs duty on raw materials / capital  goods locals and from local taxes and levies.

Units allowed to avail External Commercial Borrowings (ECBs).

Freedom to retain Foreign Exchange Earnings.

Offshore Banking Units (OBUs) permitted to be set up in SEZs with 100% income tax    exemption for first 5 years.

B. Incentives to Developers, Co-developers & Investors :

Import / procure goods without payment of duty for the development, operation and    maintenance of SEZ.

Income tax exemption for a block of any 10 years in 15 years at the option of developer.

Income Tax exemption also extended to Investors in SEZs u/s 10 (23) G of IT Act,    Exemption from Service Tax.

100% FDI permitted to develop township within the SEZ with residential areas, markets,    playgrounds, clubs, recreation centers etc.

Full freedom in allocation of developed plots to approved SEZ units on purely commercial basis and complete authority to provide services like water, electricity, security, restaurants, recreation centers etc. on commercial lines.

Develop Standard Design Factory (SDF) building in existing Special Economic Zones.

Generation, Transmission and Distribution of Power in SEZs allowed.

C. Haryana Special Economic Zones Act :

The State Government of Haryana considers the Special Economic Zones as the    modern engines of economic growth.

In order to facilitate setting up of SEZs in the State, the Government has enacted the    Haryana Special Economic Zones Act 2005. The Act aims at promoting industrial    growth with emphasis on infrastructure development

D. Main Features :

Fiscal benefits in the form of exemption of Sales tax, excise duty, electricity duty,    stamp duty etc.

Time bound clearances through a Single window clearance mechanism.

Land can be acquired by the Government on behalf of the developer between 25% to    50% based on the location of the SEZ.