Uttar Pradesh offers major sops in new SEZs
A decision to the effect was taken at a meeting of the state cabinet on Tuesday in Lucknow.india Updated: Aug 02, 2006 14:51 IST
Uttar Pradesh has decided to pull out all stops in offering sops to investors ready to set up units in the state's newly created Special Economic Zones (SEZs).
"Investors in the SEZs would not only be entitled to a total tax holiday but would also be free to say adieu to various labour laws and even be free to put up captive power plants to sustain their units," said Atul Gupta, the state's industrial development commissioner.
A decision to the effect was taken at a meeting of the state cabinet on Tuesday, he told reporters in Lucknow.
Three categories of SEZs have been marked. Category 'A' includes NOIDA (New Okhla Industrial Development Authority) and Greater NOIDA. Under category 'B' were such places that had earlier been declared as Industrial Development Authority. All other areas would fall under category 'C', he said.
All SEZs would be declared "industrial townships" under the provisions of Article 243 (Q) of the Indian Constitution, thereby getting exemption from all civic taxes as well.
Entrepreneurs would get total exemption from paying stamp duty for registration of land in the SEZs. "We propose to go for both public and private participation and we will ensure a single-window clearance for the entrepreneurs," Gupta said.
According to him, "not only would investors be free to set up their captive power plants but also be allowed to sell surplus power to others within the SEZ".
To top it all, no state tax would be levied on goods manufactured in the SEZ in the same manner as was done in the case of export-oriented units.
"Industrial units in the SEZs would be given the status of public utility service under the Industrial Disputes Act, thereby disallowing any kind of interference from the local labour authorities," he added.
"In case of SEZs, all labour-related problems and disputes would be dealt with by the Development Commission of each SEZ."