These zones availed tax breaks worth Rs 83,104.76 crore but did not generate enough jobs
Shreerupa Mitra-Jha | November 28, 2014
Special economic zones (SEZs), symbolising India’s drive for economic growth in the post-liberalisation era, have failed to perform their stated purpose of job creation, and have been reduced in many instances to fraudulent land deals, reveals a new report from the comptroller and auditor general (CAG).
“Though the objective of SEZ is employment generation, investment, exports and economic growth, however, the trends of the national databases on economic growth of the country, trade, infrastructure, investment, employment etc do not indicate any significant impact of the functioning of the SEZs on economic growth,” said the CAG report.
The report indicated that the sampled SEZs numbering 152 had non-performance in employment generation ranging from 65.95% to 96.58%, investment from 23.98% to 74.92% and export ranging from 46.16 to 93.81%.
The SEZs that contribute to job creation are located in a few developed states that were established prior to the enactment of the SEZ Act.
The audit observed that the ministry of commerce and industry has not prescribed any measurable performance indicators to gauge the real socio-economic benefits out of SEZs for the citizens and the state.
"Land appears to be the most crucial and attractive component of the scheme," noted the report. Out of the 45,635.63 hactares allotted for the SEZs, work commenced in only 28,488.49 ha. In some cases, fraction of the land acquired was notified for SEZ and was denotified later to benefit from price appreciation – out of 39,245.56 ha of land notified in the six states, 5,402.22 ha was denotified and diverted for commercial purposes.
SEZs in India had availed tax concessions to the tune of Rs 83,104.76 crore between 2006-07 and 2012-13. Tax exemptions also revealed that ineligible exemptions/deductions to the tune of Rs 1,150.06 crore and systemic weaknesses in tax administration to the tune of Rs 27,130.98 crore.
Commenting on the lack of a proper monitoring framework, the CAG said the lack of internal audit facilitated developers to misrepresent facts to the tune of Rs 1,150.06 crore.
India has 496 SEZs covering 61,000 ha of land involving Rs 3 lakh crore of investment.
The election of the vice president will take place on August 5, said the Election Commission of India on Thursday. The term of vice president Hamid Ansari ends on August 11. "The date of polling will be August 5. Counting will be done on
It was big. It was energetic. It was emotional and soul awakening. It was the need of the hour. Its message was loud and clear. But #NotInMyName cannot be in my name. The #NotInMyName protest is a demonstration that was scheduled in Delhi and in some 21 cities across the country on June 28
Darjeeling and the neighbouring areas are burning once again after the fire of the demand for Gorkhaland state was ignited by the West Bengal government’s provocative action in trying to impose Bengali language on the Gorkhali speaking majority in the hill districts in the north of the state. Three p
India is increasingly turning to defence diplomacy to gain strategic depth in its neighbourhood and beyond, a move that is expected to checkmate China’s muscular domination. Defence as a tool of diplomacy is helping India to win over friendly countries who are currently witnessing a lot of
The Bharatiya Janata Party is today going to town over the Goods and Services Tax (GST). But, there was a time in the recent past when the party opposed it tooth and nail, with the Gujarat government, then led by Narendra Modi, describing it as “retrograde in nature and completely against the tenet
There is not even a drop of water in Cholavaram reservoir, says an officer from Chennai metropolitan water supply and sewerage board. The Cholavaram reservoir, one of the main water sources to Chennai, currently has zero million cubic feet (mcft) of water, according to data provided by Chennai me