AP Government Submits Draft on SEZ Bill-2016 to Centre

The Dollar Business Bureau

The Andhra Pradesh government has set up an expert committee on new SEZ Bill 'Special Economic Zones (SEZ) Act-2016' and sent the draft to the Centre for its approval. The State government is keen on monitoring the performance of SEZs as they contribute significant part to the exports. A senior official on a condition of anonymity, said that state government's approval would be necessary for denotifying any SEZ, while the SEZ's Development Commissioner will play a co-ordinator role with the Centre.

"Further, anyone can apply for SEZ as the state will forward the application as it is or with modifications to the Centre. Upon receiving the Centre's approval, the respective area will be notified as SEZ. Developer can buy private property or leased land is also eligible," adds the official.

However, for conversion of agriculture land, the prospective SEZ developer should inform the state government about the potential of employment generation. The state government would appoint deputy secretary or above cadre official as Development Commissioner at SEZ. One Development Commissioner can handle one or more SEZs.

If any developer wants to denotify SEZ, he has to apply to the Centre and should forward the same to the Development Commissioner. Based on the recommendation by the Development Commissioner, the centre will take the decision. If the state government is satisfied with the furnished reasons for denotification, it'll issue a no objection certificate (NoC). A committee  headed by Chief Secretary, comprising principal secretaries from revenue, municipal, industry, commerce, IT and mines departments, will take a call on applications for denotification.

The Development Commissioner will have all the powers and responsibilities entrusted in SEZ-2005. Andhra Pradesh's SEZs are emerging major export hubs and registered over 20% growth rate in 2015-16. Exports from Andhra Pradesh and Telangana SEZs were pegged at about Rs 55,000 crore in 2015-16 fiscal and accounted for about 25% of the overall exports from SEZs in the country.