With the enactment of the SEZ Act 2005 supported by SEZ Rules 2006 by the Government of India, the best of the facilities and incentives are now available under the SEZ scheme. Every company is now looking at SEZ scheme for their Export Industry / Services. Why don't you become part of it and reap the benefits. The full utilization of such infrastructure facilities and generous incentives depends on where your proposed facility is located. Of course, there is no better place than Visakhapatnam Special Economic Zone (VSEZ). You do business and we take care of the rest.

Advantage VSEZ

1. High quality infrastructure at affordable rentals with initial concessions



2. Action oriented, responsive and export-friendly administrative set up



3. On-line services for all clearances/permissions



4. Strategically located - Easy accessibility to South and South East Asian countries



5. Strong industrial base and productive workforce



6. Readily available skilled workforce at reasonable wages



7. High quality and low cost social infrastructure



8. Well connected by rail, road and air to rest of the country



9. In-house customs facility for quick and easy clearances

DEVELOPMENT OF NEW SEZs:

SEZ Scheme allows State Governments, Private firms and individuals to develop multiproduct SEZs in 1000 Hectares, Sector Specific SEZs in 100 Hectares and IT/ITES Biotechnology/ non conventional energy and gem/jewellery SEZs in 10 Hectares of contiguous and

BENEFITS TO THE SEZ DEVELOPERS

• Duty-free (Customs and Central Excise) import/procurement of goods for development, operations and maintenance



• Full freedom in allocation of developed plots/sheds to approved SEZ units on purely commercial basis. They can sell, lease or rent the created facility



• Full authority to provide services like water, electricity, security etc., purely on commercial basis



• Facility to develop township within SEZ with residential areas, markets, playgrounds, clubs, recreation centers etc., on commercial lines

What SEZ Scheme offers you:

• SEZ is a designated duty-free enclave and treated as foreign territory for trade operations, duties and tariffs



• Units can be set up for manufacturing, trading or service activity



• Policy permits self-certification procedures for all clearance/permissions



• Units have to achieve only positive Net Foreign Exchange (NFE) within five yers i.e., A-B>0 where (A) is the FOB value of exports; and (B) is CIF value of imports



• Exemption from Customs and Central Excise duty on import/local procurement for the purpose of establishment and maintenance of the unit



• 100% Direct Foreign Investment permitted through automatic route in SEZs and full and free repatriation of export proceeds permitted



• Sub contracting of Part of production or production process permitted in the Domestic Tariff Area. Sub contracting part of production process is also permitted abroad

Fiscal Incentives Available to SEZ Unit:

• Exemption of Service Tax



• Exemption from payment of Central Sales Tax (CST)

EXCLUSIVE SEZ POLICY:

• The Development Commissioner in the Nodal Authority to facilitate all Central/State level clearances.



• The Development Commissioner has been delegated, with the powers of Commissioner of Labor for SEZs.



• Self-certification procedure has been introduced for filing of regular returns



• Public Utility Status granted



• Women working in night shifts allowed for software units

Incentives OFFERED BY State Government of Andhra Pradesh

• Single Window clearance Mechanism for all State leve clearances.



• Exemption from levy of AP VAT.



• Exemption from payment of stamp duty and registration fee on registration of lease deeds.



• 100% exemption from payment of stamp duty and registration fee for loan agreements, credit deeds, mortgages and hypothecation deeds executed by the Special Economic Zone units for assets in the Special Economic Zone in favour of Banks and Financial Institutions



• Exemption from payment of capital contribution charges for supply of water



• 15% investment subsidy on fixed capital investment to Small Scale Industries (SSI) and Tiny Industrial Units subject to a limit of Rs.15 lakhs



• 25% of the tax paid during one financial year will be ploughed back to all eligible industries as a grant by the Government towards the payment of tax during next year



• 3% interest rebate on the Prime-Lending Rate (PLR) on term loans taken by new tiny/SSI units subject to a limit of Rs.5 lakh per year. This will be 5% if SC and ST entrepreneurs promote the units



• An additional investment subsidy of 5% subject to a maximum of Rs.5 lakh will be provided to women entrepreneurs. They will be also given a 5% interest rebate on PLR



• Projects with an investment of Rs.100 Crore and above are eligible for all the incentives available to large and medium scale industries



• The Government will also extend tailor-made benefits to suit to a particular investment requirements on case-to-case basis.

HOW TO APPLY:

Apply, in prescribed proforma FORM-F of SEZ Rules, 2006 in 10 copies along with a Demand Draft for Rs.10,000/- drawn in favour of VSEZ, Ministry of Commerce -receipt

The application shall be accompanied by

(i) Detailed Project Report

(ii) Income Tax Returns of the Promoters for the last three years

(iii) Identity proof of the Promoters

(iv) Certificate of Incorporation

(v) Articles of Association and Memorandum of Association

(vi) List of Directors/Partners

(vii) Experience of the Promoters

(viii) Marketing tie ups.

For Government of India Policy on SEZ scheme visit http://sezindia.nic.in