About Us: Santacruz Electronics Export Processing Zone (SEEPZ) Is A
About Us: Santacruz Electronics Export Processing Zone (SEEPZ) Is A
of electronic items in an area of 100 acres of land leased through the Maharashtra Industrial Development Corporation (MIDC), Andheri(East), which over the years has become a land mark of Mumbai. The objective was of (a) accelerating the progress of electronics manufacturing in India (presumably encompassing the technology transfer objective) and (b) to take advantage of the growing electronics world market (export and foreign exchange objective). Considering the high potential and the pollution-free nature of Gem & Jewellery Industry, the Govt. of India decided to permit manufacture and export of Gem & Jewellery items from SEEPZ during 1987-88, which soon gave a glamorous twist to SEEPZ. In 2000, Government of India decided to set up new Special Economic Zone/ convert some of the existing Export Processing Zones to Special Economic Zones. SEEPZ was one of the three Export Processing Zones converted as Special Economic Zone w.e.f. 1st November, 2000. The Government of India enacted the Special Economic Zones Act, 2005 on 23rd June, 2005. Subsequently, the Special Economic Zones Rules, 2006 were notified on 10th February, 2006. The approval for establishment of SEZ is granted by the Board of Approvals (BOA) in the Ministry of Commerce & Industry. The SEZs located in the State of Maharashtra, Goa and Union Territory of Dadra, N. Haveli, Daman & Diu are under the jurisdiction of the Development Commissioner, SEEPZ SEZ.
Santacruz Electronics Export Processing Zone (SEEPZ) is a Special Economic Zone in Mumbai, India. Situated in the Andheri East area, it is subjected to liberal economic laws as compared to the rest of India to promote rapid economic growth using tax and business incentives and attract foreign investment and technology[1]. Seepz was created in 1973 and was seen as export processing zone[2]. Since then many other SEZs have been created in rest of India. SEEPZ mainly houses Electronic Hardware Manufacturing Companies, Software Companies and jewellery exporters of India. More than 40 percent of Indias total jewelry exports ($2,222.31 million) out of $5,210.69 million during year 2006-2007 came from units within SEEPZ[3]. Despite its name, it is not located near the suburb of Santacruz, rather it is located closer to Andheri that lies further north. More than 150 units operate in SEEPZ. Prominent companies that have offices within Seepz include: Navteq, Renaissance Jewellery Ltd, Gitanjali Gems Ltd, Vaibhav Gems Ltd, Ddamas for Jewelry. IT Companies include Blue Star Infotech Ltd, Praxis Interactive Services Ltd, CGI Group Inc., Thirdware, iGATEPatni Computer Systems, Tata Consultancy Services, Geodesic Limited, Trigyn Technologies Limited, Syntel Limited etc., buildings in SEEPZ are called Standard Design Factories (SDF)[1]. The SEZ is a high security entry zone. Employees of various companies need to have permanent SEEPZ gate pass to gain entry. Visitors need special permits to enter[4]. Due to these hassles government proposed making SEEPZ a Free Trade Zone(FTZ) in 1999. However, gate pass and visitor pass rules continue till date. Making SEEPZ a FTZ meant that it would be treated as outside the customs zone of India. This meant no excise or customs duty will be levied on raw material but companies would also not be able to sell their products in domestic market[5]. There are also Hotels like Indian Coffee House which is quite popular. Due to its business importance and high concentration of work force SEEPZ has remained the prime target of criminals and terrorists. A high profile case occurred in 1999 when diamonds worth 10 crore (US$2
million) and gold worth 39 lakh (US$78,000) were smuggled out and sold in local market[6]. After the 28 July 2003 Mumbai Bus Bombing major stockpile of explosives was also found near SEEPZ[7]. Women employees working in SEEPZ during the night shifts are entitled transport facility between home and office from their employers[8]. Notable facts Within the premises is located the ruins of an abandoned Portuguese church, St. John the Baptist Church, Mumbai built in 1579[9]. The church also laid in ruins for years and access to it restricted since the SEEPZ was formed. After much political controversy, it was handed back to Fr Rodney Esperance of Bombay Archdiocese in 2003[10] in ceremony organized by Maharashtra Chief MinisterSushil Kumar Shinde[11]. A lake and several canteens are located inside the SEEPZ premises.
India: Santa Cruz Electronic Export Processing Zone (SEEPZ) Special Economic Zone Special Economic Zone (hereinafter referred as SEZ). It is a geographical region that has economic laws that are more liberal than a countrys typical economic legislation. The SEZ is a trade capacity development tool, with the goal to promote rapid economic growth using tax and business incentives to attract foreign investment and technology. In India, the concept of SEZs was first adopted in the year 2000 as part of the Foreign Trade Policy. Since then the Union Government of India after prolonged deliberations notified the SEZ Rules in February 2006 operationalising the SEZ Act 2005. At present, there are 15 SEZs up and running in India. These include eight old exportprocessing zones (EPZs) that have been given the status of SEZs and seven new SEZs that have recently become operational. Over the years the Scheme underwent various transformation and its scope also expanded substantially as compared to the initial Scheme, which was basically for manufacturing sector with certain minimum value addition in terms of export earnings. 'India: SEEPZ SEZ' covers the objectives, format, characteristics and export performance of India SEZ, incentives to developers, comparative analysis of SEZs and EPZs, impact on Scheme and The Road Ahead, and infrastructure, trade and economic profile of SEEPZ. It also covers the market trends and outlook, trade profile, infrastructure facilities and SEEPZ SEZ outlook, plus the comparative matrix and SWOT analysis of the industry leading players: Renaissance Jewellery Ltd, Gitanjali Gems Ltd, Vaibhav Gems Ltd, Blue Star Infotech Ltd and Datamatics Technologies Ltd Santacruz Electronic Export Processing Zone (SEEPZ) Back Loacted in the heart of metropolitian Mumbai, SEEPZ has acccess to Mumbai's vast commercial, industrial and social infrastructure, its efficient communication network, a competent ancillary base, a well-developed financial and credit structure and a skilled an d experienced urban work force. * SEEPZ was established in 1974. * Today there are 162 units engaged in software and hardware development with 8000 IT professional. * Export of Software is Rs. 6270 million, that of Hardware is Rs. 4330 million. * Seepz also houses a Gems & Jewellery complex set up in 1997-98, entirely dedicated to exports. * Total turnover of companies in Seepz is Rs. 25170 million including Gems & Jewellery units. Transport & Communications SEEPZ is just 6kms away from Mumbai's international airport at Sahar. Every week 200 international flights of 20 major airlines take off from Sahar to the rest of the world. SEEPZ is also well connected with various parts of city by local trains and the urban transport service.
Point-to-point dedicated data communication facilities are also available at SEEPZ. Additional SEEPZ An additional built up space of 2,60,000 sq.ft. has recently been constructed by MIDC with in the SEEPZ area, out of which half the space is earmarked for IT units and the other half for Gems & Jewellery units. MIDC is also planning a Software Technology Park on 11 acres of land just adjacent to SEEPZ. Open plots as well as constructed premises will be offered to IT units here. SALIENT FEATURES Duty free import/domestic procurement of all goods (except prohibited goods) for carrying out the authorized operations. 100% Income Tax exemption under Section 10AA of the Income Tax Act, 1961 for first 5 years, 50% for the next 5 years and for next 5 years 50% of the profit if such profit is reinvested to the SEZ units who begins to manufacture or produce articles or things or provide any services during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2006. Exemption from Minimum Alternative Tax under Section 115 JB of the Income Tax Act. Exemption from Dividend Distribution Tax under 115/O of the Income Tax Act. Facility to setup overseas banking units. 100% Income Tax exemption under Section 80 LA of the Income Tax Act, 1961 for 5 consecutive years and 50% for next 5 years to Off-shore Banking (OBU) units. External commercial borrowing by SEZ units upto USD 500 million in a year without any maturity restriction, through recognized banking channels. Exemption from Central Sales Tax on sales made from Domestic Tariff Area (DTA) to SEZs. Supplies to SEZ are to be treated as exports and are eligible for all export benefit such as drawback/advance license/DFRC/DEPB. Refund of VAT by State Government in respect of goods procured by SEEPZ units from within the State of Maharashtra. SEZ units may be for manufacturing, trading or service activity. SEZ units to be positive Net Foreign Exchange Earners. Single window approval for State level clearances. PROCEDURES In terms of Section 13 of the SEZ Act the Approval Committee for SEEPZ SEZ was notified by the Ministry of Commerce & Industry vide Notification No. S.O. 144(E) (No. F.1/1/2006-EPZ), dated 07.02.2007. The Approval Committee acts as a single window for grant of various approvals required by the zone units. The Zone Administration is under the overall charge of Development Commissioner. The Office of Development Commissioner extends necessary assistance and serves as a single window for export-import related matters and clearances from State Govt. Department and other local bodies. The SEEPZ Service Centre within the Zone is theOne Stop Shop, which caters to all the needs of the Zone units. The supportive administrative system helps new firms to get down to production within the shortest possible time, concentrate on their export activity and run their operation smoothly. The proposal falling beyond the jurisdiction of the Approval Committee are sent to the Board of Approval for consideration. The Govt. of Maharashtra have delegated certain powers under various Labour Laws in respect of Units located within SEEPZ-SEZ.
EMPLOYMENT IN SEEPZ-SEZ
The total direct employment in the zone is approx. 85,000 persons. The role of SEEPZ SEZ is exemplary as about 40% of the employment in the Zone is of female employees both in Gem & Jewellery and Hardware Sector, which goes a long way in the local Community Welfare
EXPORT PERFORMANCE The Zone commenced its operation in Sept. 1974 with five units commencing exports. The following statement gives the year-wise figures of actual exports, growth rate and number of units in production during the last five year.
INFRASTRUCTURE IN THE ZONE Sprawling infrastructure of SEEPZ-SEZ is spread over 111 acres and consists of 7 Standard Design Factories and 3 Gem & Jewellery Factories, 2 Towers in SEEPZ++ area & One multistoried building with a built up area of 4 lakh sq. ft. Plots are leased for 30 years and built up area is leased for five years on renewable basis. Well connected network of central roads, and a Business Facilitation Centre are salient add-ons. At present, the lease rent charged for built up area is Rs. 1590/- per sq. mtr. p.a. and for plots Rs. 70/- per sq. mtr. p.a. SEEPZ-SEZ makes constant efforts to provide comprehensive services and infrastructure support to facilitate business and create convenience for exporters and their customers visiting the Zone. From parking space , a residential hotel, restaurants and food court, a warehouse, foreign post office, Banks, Offshore Banking Units, Communication Centre, an exclusive Telephone Exchange, ATM centres, an executive restaurant are inside the Zone Complex. As SEEPZ SEZ is statutorily exempt from power cuts, uninterrupted power supply is guaranteed from generating stations of Western Maharashtra. The Zone has also an assured supply of 4.6 mld. of water a day. SEEPZ SEZ is also provided with hi-tech secured lease lines that enables the Units to communicate and video conference over satellite to any of the offshore sites or branches around the world, which has helped a long way in the initial days of Software Industry. The Minerals and Metal Trading Corporation of India (MMTC) has its strong room within the premises of the SEEPZ SEZ for security and quick delivery of precious metals. MMTC also offers gold to gem and Jewellery exporters for sale or on loan basis. This enables exporters quick and cheaper access to raw materials. SEEPZ-SEZ is a export manufacturing hub with an in-house Customs clearance facility. This enables the exporters to deliver their air and sea consignments well in time without any hassles and through simplified procedures. SEEPZ-SEZ offers unique combination of urban infrastructure, skilled labour, eco-friendly production, speedy and cost effective shipping. SEEPZ-SEZ has a well groomed security system including a high security entrance to avoid any pilferage of duty free goods. A dedicated Fire Station too is being located within the Zone. Supporting the philosophy of making every business process sustainable for the zone and the society at large, SEEPZ-SEZ facilitates and encourages that the units within the Zone offer regular programmes for skill development, to and fro transport and recreational facilities to their individual employees.