Commerce ministry presses for continued tax sops for SEZs
New Delhi: The commerce ministry is trying hard to convince the empowered Group of Ministers (EGoM), headed by External Affairs Minister Pranab Mukherjee, on the continued need for tax sops to SEZs. In its presentation to the EGoM at the meeting earlier this week, the commerce ministry said that corporate tax concessions are available to units under the zones only on their export income.

For any sales in the domestic tariff area, 100 per cent duty and taxes as per import tariff have to be paid as per the rules. The presentation also pointed out that tax concessions for manufacturing and service units are similar to the ones already given to units in 100 per cent Export Oriented Units and Software Technology Parks till 2009.

The ministry is also of the view that without tax concessions, no developer will come forward to invest over Rs2,500 crore in multi-product SEZs without assured time frame for returns. The presentation added that similar tax benefits already exist for developers of non-SEZ projects for the past 10 years. The commerce ministry pointed out the scenario in China where SEZs enjoy tax concessions even after two years of the units turning profitable and are charged a corporate tax of around 15 per cent, while in India, the rate is around 30 to 33 per cent.
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WB to set up foundry park on land acquired in Howrah
Kolkata: The West Bengal government has decided to acquire 500 acres in Howrah for a foundry park that is slated to attract Rs3000 crore of investment. The decision was taken at a state cabinet meeting. According to state commerce and industry minister Nirupam Sen: "The foundry park will lend impetus to the growth of foundry units in Howrah, which was once known as Sheffield of the East.

He said West Bengal Industrial Development Corporation (WBIDC) will acquire the land to avoid any sudden hike in land price. Incidentally, the state cabinet has to clear any land acquisition proposal which is more than 100 acres.

He said that the project will attract an investment of Rs3,000 crore. Nearly 150 foundry units will come up at the proposed park which will provide employment to 1 lakh people.

The proposed foundry park on the Ranihati-Amta road will be spread over 924 acres. Indian Foundry Association (IFA) has already acquired 283 acres from farmers in this light.

Sen said that till 1975, West Bengal met 65 pc of the casting requirement in the country which has reduced to 25 pc of the total production of 33 lakh tonne per annum. However there has been a sudden surge in demand for all three kinds of castings - sanitary, industrial automobile - in India and abroad. West Bengal can ideally respond to such demand that is expected to grow in coming years.
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