News APP

NewsApp (Free)

Read news as it happens
Download NewsApp
Home  » Business » Govt plans one-stop nod for SEZs

Govt plans one-stop nod for SEZs

By Rituparna Bhuyan in New Delhi
October 16, 2007 08:55 IST
Get Rediff News in your Inbox:
The Department of Commerce is preparing guidelines for setting up single-window clearance systems in states for special economic zones (SEZs).

The move comes after a recent review by the department, in which it was found that the SEZ developers were facing problems in getting approvals in many states.

The SEZ Act, operational since February 2006, provides for such a mechanism in the states. According to the Act, the mechanism would operate at two levels - for developers of SEZs and for units inside them.

In the absence of such a system in almost all states where SEZs are coming up, the developers and companies have to struggle to get clearances for buildings, master plans, water and electricity connections, besides labour and sales tax registrations.

Analysts say even states like Haryana, Maharashtra, Karnataka and Tamil Nadu, which are hot destinations for SEZs, don't have such a system.

"With more than 140 notifications, SEZ developers are about to start construction but are facing a lot of difficulties in getting state-level clearances as they have to follow them up separately," said Ajay Nijhawan, convenor of the Export Promotion Council for EoUs and SEZs (EPCES) panel of SEZ developers.

"In certain states, getting some of the clearances is cumbersome. For example, developers and units in Haryana have to approach the traffic police department to get their traffic-flow plan approved," said a Delhi-based analyst.

"On September 10, the commerce secretary met the development commissioners and state government representatives for a review of the progress on the front," said a government official.

Under the SEZ Act and rules, state government representative in the unit approval committee (which clears units in SEZs) should be delegated powers for clearances.

The official can also act as a coordinator for state-level approvals so that the unit approval committee acts as an one-stop shop for clearances.

Get Rediff News in your Inbox:
Rituparna Bhuyan in New Delhi
Source: source
 

Moneywiz Live!