Mumbai: The state Cabinet on Tuesday approved a proposal to extend the 10-year tax relief period granted to Maharashtra’s Special Economic Zones (SEZ) by another 15 years. The proposal entails exemption in stamp duty and no charging of registration fees for first purchase and lease in SEZs. The state’s 28 SEZs that are currently operational will benefit due to the Multi-modal International Cargo Hub and Airport at Nagpur (Mihan), a pet project of chief minister Devendra Fadnavis.
The state government introduced the SEZ policy on October 12 2001, after which the Centre, in 2005, enacted the SEZ Act. The Centre approved the Mihan SEZ in May 2007; and as per the state government’s decision, tax relief in the stamp duty and registration fees were to last for 10 years. So in the case of Mihan, the tax holiday ended in May this year. There hadn’t been much response to the Mihan SEZ from industry during the previous government’s regime. Mr Fadnavis, however, has made many efforts to bring in good investment in Mihan, with Baba Ramdev’s orange city also being planned for the site.
In a bid to attract investment from industries in the state’s SEZs, the industry department had proposed that their tax holiday be extended to 25 years from 10, which received the state Cabinet’s approval. It will apply from the date of the Central government’s sanction to the SEZ.
The government will take review on this matter after every 5 years.
As per the industry department, SEZs help in overall economic development and employment generation. The department cited the example of Pune’s Hinjewadi SEZ. The ready reckoner (RR) rate of land was Rs 9,44,000 per hectare and after the SEZ was founded it increased up to Rs 2,01,58, 000 per hectare, it stated in a note. “These SEZs helped in increasing state and country’s revenue and exports as well,” the note read. So to boost investment and attract industry, department proposed to extend tax relief for 15 more years.
