KANDLA SPECIAL ECONOMIC ZONE
It is the most spacious special economic zone of India and is an ideal location for setting up export oriented activities for manufacture of goods for exports and trading activities. It is India's biggest and Asia's 1st Special Economic Zone in the multi- product category.
Kandla SEZ is located in the state of Gujarat and the advantages include it has infrastructure facilities that are well developed, abundant labor supply, and situated at a distance of 9 km from the Kandla port which is an all weather modern port. This has proved to be an advantage for the Kandla SEZ for the export and import of goods from the SEZ can be done very easily for the time taken for transportation is less and so the costing is also less.
Further Advantage Kandla SEZ is that there is assured supply of water and power which are very essential for the industries that are set up in the SEZ. Also in the Kandla SEZ there is a dynamic round the clock administrative support. This has also proved to be an Advantage Kandla SEZ.
The various advantageous Kandla SEZ policies that has attracted many companies to set up units in the SEZ are that it is treated as a enclave that is duty free and also as a foreign country for tariffs, duties, and trade operations. In the Kandla SEZ customs duty has been exempted on import of consumables, raw material, spares, and capital goods. Further the beneficial Kandla SEZ polices are that for import license is not required, 100% exemption from income tax for a period of 5 years and after that 50% exemption from income tax for 2 years, and the units can be for service, manufacturing, and trading activity, and norms for wastage is not fixed. Also the positive Kandla SEZ polices that has attracted many companies to set up units in the SEZ are that there are no regular checking by customs of import and export cargo, availability of subcontracting facility for jewelry units, goods that are duty free can be used in 5 years, and no limits on foreign investments that come for items reserved by SSI.
Facilities in Special Economic Zone
A new Special Economic Zone (SEZ) scheme has been introduced in the Export & Import Policy from 1/4/2000, with a view to provide an internationally competitive and hassle free environment for export production.
