SEZ approval process to be online from October

Getting approvals for setting up units in special economic zones (SEZs) will be done electronically from next month - a move helping entrepreneurs reduce transaction costs, a senior Commerce Ministry official said on Thursday.

"SEZs online means all approvals for setting up units or the infrastructure facilities will be done electronically," Additional Secretary in the ministry. D K Mittal, said at an Associated Chambers of Commerce and Industry of India (Assocham) function here.

Also considered as a green initiative, it would help the units reduce transaction cost and time, he said.

"The benefit would be in fast transactions. The transaction cost will be reduced dramatically...We expect that by middle of the next month, we will be fully on the e-system," Mittal said.

The data collection and collation will also become easier for everybody, he added, saying: "Everything will be electronic, whether a shipping bill or bill of entry."

Mittal further said the ministry had asked all the Development Commissioners (DCs) to hold monthly meetings with officials of operational units to address their problems.

"We have asked the DCs to go to the notified zones at least once a month and have an open house discussion. This should start from October 1," he said.

Mittal also asked the developers to market SEZ schemes to attract more investments from abroad.

"We did not find developers doing enough marketing to attract investments for units. If you are not able to spend money on marketing, then how do you get units (in SEZs) and how do you get your money back," Mittal said.

Direct employment in SEZs has gone beyond 5.5 lakh people and investments have crossed Rs 1.66 lakh crore. Exports from 122 operational SEZs in the last financial year were valued at Rs 2.20 lakh crore.