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Proposal to end incentives for new SEZ units
July, 26th 2010

Andhra Pradesh today appealed to the Centre to review the proposal in the Direct Tax Code to end tax incentives and benefits for the new SEZ units, saying that special economic zones can become "engines of growth".

"Andhra Pradesh is one of the leading states focusing on infrastructure growth and strongly believes that SEZs are opportunities to create Greenfield cities with world class infrastructure," Chief Minister K Rosaiah told the National Development Council meeting here.

Noting that the state has 106 formally approved and 73 notified SEZs, he said out of these, only 19 were in operation and rest in various stages of project development.

"The new provisions of DTC would seriously affect all these investments and would erode the investor confidence, who have invested time and resources during the last few years in developing these world class projects," Rosaiah said.

Under the DTC, the exemption on export income of the SEZs will not be allowed for new SEZ units therein.
    
The Centre should review the proposal and see that all the incentives under SEZ Act of 2005 were continued to all the developers and units, so as to restore the investor confidence, Rosaiah said.
    
On Maoist menace, he said that seven border districts of Andhra Pradesh adjoining Chhattisgarh, Orissa and Maharashtra continued to face the risk of relapse of extremism on account of their proximity to these Naxal-affected places.
    
"If Andhra Pradesh has to sustain the gains of controlling left wing extremism (LWE) on a permanent basis, it is imperative to categorise all seven districts under LWE Special Development Plan by bringing necessary changes in the selection criteria," he added.

 
 
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