States asked to set up single window clearance mechanism for SEZs

The centre has asked state governments to set up a single point clearance system for speedy approvals of SEZs, as these tax-free zones contribute contribute significantly to the country's exports.

Commerce secretary Rahul Khullar told reporters in New Delhi that the at the board of approval meeting state government representatives had been told that they would need to establish a single window clearance system at the state level so as that businesses are not made to run from one post to another.

SEZ developers have complained of problems in setting up projects as they need to obtain multiple permissions from state authorities for master plan and environment at various levels. Additionally, they have to also deal with state electricity and water supply agencies.

The SEZ Act of 2005 seeks to smoothen the process of obtaining clearances at both the central government level and also of the state governments from a single point of interaction.

Most state governments do not offer a single window clearance facility and Khullar said he would take up the matter with chief secretaries of states for speedy implementation of the single window system.

Khullar, who chaired the inter-ministerial board of approval said, "As a follow up (of today's BoA meeting) I will be writing to the chief secretaries in a day or two."