SEZ Policy to play a very important role in employment generation, increasing exports, creation of world class infrastructure and attracting Foreign Direct Investment - Kamal Nath
Union Commerce Minister, Kamal Nath addressing the 4th Annual General Meeting of the Export Promotion Council for EOUs and SEZ Units (EPCES), yesterday said that a number of issues relating to EOUs have been resolved. This includes implementation of Fast Track Scheme, exemption from Bank Guarantee, extending the facility of Cenvat Credit, reduction of basic customs duty to 25% on the DTA sale, simplified procedure of registration at the port etc. However, a major issue relating to EOU i.e. removal of Sunset Clause is yet to be resolved and had been discussed with the Prime Minister's Economic Advisory Council.
The Commerce Minister added, "SEZ Policy is going to play a very important role in employment generation, increasing exports, creation of world class infrastructure and attracting Foreign Direct Investment in the country in the next one decade. SEZs are certainly going to play a very important role by providing inclusive growth in the country. At present SEZs-new and old are already providing direct employment to over 2,30,000 people. New Generation SEZs have already provided direct employment to over 45,000 people and I have been informed that over 1 lakh additional jobs will get created by December, 2007. Once all the 366 formally approved SEZs, become operational 4 million additional jobs are likely to be created. Manufacturing sector will also get a big boost. If you go and see the new SEZs, which have started functioning, you will find that most of the employment provided is to the rural youth from the nearby villages. Employment in the SEZs has completely changed the life of these employees and their family as well. I feel that this is the greatest contribution SEZs will make to the society. The huge investment being made by these SEZs is resulting in fast developments and as the SEZs become functional, the benefits will become more pronounced".
Sir, do you remember you made an announcement in your Foreign Trade Policy in April 2007 that service Tax will be exempted for all exports? Five months down the line, nothing has happened. And recently the Tribunal ruled that service Tax paid on CHA services is not even allowed as input Credit. Obviously the Revenue department does not think much of your lofty schemes!