Invest in Karnataka The Land of opportunities

52
KARNATAKA LAND OF OPPORTUNITIES Study on Developing a Multi product Agro SEZ in Karnataka Presented by ; FAROOK A AZAM MD, BIG www.biginfra.net 1

description

Invest in Karnataka which is the land of opportunities

Transcript of Invest in Karnataka The Land of opportunities

Page 1: Invest in Karnataka The Land of opportunities

1

KARNATAKA LAND OF OPPORTUNITIES

Study on Developing a Multi product Agro SEZ in Karnataka

Presented by FAROOK A AZAM

MD BIG wwwbiginfranet

2

Presentation flow Why this project

Objective

Agricultural scenario in INDIA

Data Collection

Location considered for project

Project highlights

SWOT analysis

3

Why this project

BANGLADESH 4226239

U ARAB EMTS 2974591

MALAYSIA 1851599NETHERLAND 968552

UK 1055057

PAKISTAN 494771

SRI LANKA 1085744

NEPAL 555943

SAUDI ARA-BIA 457753

USA 203350

KUWAIT 218242

GERMANY 338224

BAHRAIN 246043

SPAIN 279113

QATAR 127809

SINGAPORE 179591

FRANCE 97259

MAURITIUS 170305

OMAN 89979

EGYPT A RP 192295

CANADA 87645

MALDIVES 51889

BELGIUM 178805

INDONESIA 13481

RUSSIA 66086GREECE 88703 ITALY 13944 PHILIPPINES 31601 CHINA P RP 020 UNSPECIFIED 17776AUSTRALIA 25019 NORWAY 9312 REUNION 30748 BRUNEI 25603 SWITZERLAND 31997 SEYCHELLES 10345DENMARK 62623 JAPAN 61844 SWEDEN 27019 NEW ZEALAND 14494 TAIWAN 28992CYPRUS 10945YEMEN REPUBLC 23575IRAN 28319 BAHAMAS 9192 HONG KONG 23414 PORTUGAL 10921LITHUANIA 6294AUSTRIA 21536LATVIA 1994 THAILAND 789IRELAND 4857 TUNISIA 2584 UKRAINE 5713JORDAN 2388SUDAN 15447SOUTH AFRICA 3423ISRAEL 21209BRAZIL 1776ALGERIA 3617 COMOROS 2104 IRAQ 328 UGANDA 897 KENYA 1243 LEBANON 911NIGER 029AFGHANISTAN 116POLAND 2918VIETNAM SOC REP 4449ESTONIA 1061TURKEY 035ICELAND 988TANZANIA REP 056CONGO P REP 024BULGARIA 312ZAMBIA 016KIRIBATI REP 079GUINEA 029MACAO 046KOREA RP 4789NIGERIA 155HUNGARY 326FIJI IS 380AMERI SAMOA 073SOMALIA 9252BOSNIA-HRZGOVIN 1142ARGENTINA 5252GHANA 570MALI 453MALTA 2527GAMBIA 005MOROCCO 1256MEXICO 003NAMIBIA 057NORFOLK IS 126LIBYA 382SLOVAK REP 045ST VINCENTGRE 006ST HELENA 25099ST KITTS NEVIS 042SWAZILAND 2859TAJIKISTAN 035CANARY ISLAND 3039CROATIA 001CONGO D REP 024ALBANIA 161BELIZE 056AZERBAIJAN 019FINLAND 2614FRENCH POLYNESIA 1286ERITREA 057DOMINIC REP 2306GUATEMALA 1160KAZAKHSTAN 002URUGUAY 4154TRINIDAD 224

4

QTY(2005-2006) QTY(2006-2007) QTY(2007-2008)

India Exports Statistics Major Product Group 148061375 200285738 17245736

25000000

75000000

125000000

175000000

225000000

India Exports Statistics Major Product GroupIn

lakh

s

Source MOSPI

5

Objective

Is to create employment in rural Karnataka

Generate Business opportunity for agriculture sector in

global market

To create demand and design a marketing strategy for

agriculture products

Setting up of Agro Multiproduct SEZ for Sustainable

development in Agriculture sector

6

Data Collection National sample survey report Economic survey reports Ministry of commerce amp Industry department of commerce Directorate of economic and statistics GOK Planning commission (11th five year plan vol -II) India Agro Industry Directorate of census Operations Karnataka Karnataka statistics statement from GOK site visit SEZ

7

Location Considered for the project

Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)

8

9

10

Why these 4 districts

bull All the four are connected with National highways ie (NH-48 and NH-4)

bull All the four are well connected with Rail link

bull Hassan and Hubli districts are having airstrip

bull Economical and well educated manpower available

bull Number of Educational Institutions polytechnics Engineering colleges and

Technical training institutes

bull All the four are having well irrigated land

bull The agricultural output is good when compare to other districts in the state

bull Favourable weather condition

bull Favourable State Govt Policies till date

bull Situated midway to Mangalore and Bangalore

11

Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like

roads structures and facility parking lots and weighing bridges and cranes etc

bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS

bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh

bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc

bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers

bull Going to rope all the farmers to enjoy the benefits of the project to the max

bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ

bull Creating a Marketing Block for the Agricultural products and sales

Conditions apply

12

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

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Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

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Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

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Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 2: Invest in Karnataka The Land of opportunities

2

Presentation flow Why this project

Objective

Agricultural scenario in INDIA

Data Collection

Location considered for project

Project highlights

SWOT analysis

3

Why this project

BANGLADESH 4226239

U ARAB EMTS 2974591

MALAYSIA 1851599NETHERLAND 968552

UK 1055057

PAKISTAN 494771

SRI LANKA 1085744

NEPAL 555943

SAUDI ARA-BIA 457753

USA 203350

KUWAIT 218242

GERMANY 338224

BAHRAIN 246043

SPAIN 279113

QATAR 127809

SINGAPORE 179591

FRANCE 97259

MAURITIUS 170305

OMAN 89979

EGYPT A RP 192295

CANADA 87645

MALDIVES 51889

BELGIUM 178805

INDONESIA 13481

RUSSIA 66086GREECE 88703 ITALY 13944 PHILIPPINES 31601 CHINA P RP 020 UNSPECIFIED 17776AUSTRALIA 25019 NORWAY 9312 REUNION 30748 BRUNEI 25603 SWITZERLAND 31997 SEYCHELLES 10345DENMARK 62623 JAPAN 61844 SWEDEN 27019 NEW ZEALAND 14494 TAIWAN 28992CYPRUS 10945YEMEN REPUBLC 23575IRAN 28319 BAHAMAS 9192 HONG KONG 23414 PORTUGAL 10921LITHUANIA 6294AUSTRIA 21536LATVIA 1994 THAILAND 789IRELAND 4857 TUNISIA 2584 UKRAINE 5713JORDAN 2388SUDAN 15447SOUTH AFRICA 3423ISRAEL 21209BRAZIL 1776ALGERIA 3617 COMOROS 2104 IRAQ 328 UGANDA 897 KENYA 1243 LEBANON 911NIGER 029AFGHANISTAN 116POLAND 2918VIETNAM SOC REP 4449ESTONIA 1061TURKEY 035ICELAND 988TANZANIA REP 056CONGO P REP 024BULGARIA 312ZAMBIA 016KIRIBATI REP 079GUINEA 029MACAO 046KOREA RP 4789NIGERIA 155HUNGARY 326FIJI IS 380AMERI SAMOA 073SOMALIA 9252BOSNIA-HRZGOVIN 1142ARGENTINA 5252GHANA 570MALI 453MALTA 2527GAMBIA 005MOROCCO 1256MEXICO 003NAMIBIA 057NORFOLK IS 126LIBYA 382SLOVAK REP 045ST VINCENTGRE 006ST HELENA 25099ST KITTS NEVIS 042SWAZILAND 2859TAJIKISTAN 035CANARY ISLAND 3039CROATIA 001CONGO D REP 024ALBANIA 161BELIZE 056AZERBAIJAN 019FINLAND 2614FRENCH POLYNESIA 1286ERITREA 057DOMINIC REP 2306GUATEMALA 1160KAZAKHSTAN 002URUGUAY 4154TRINIDAD 224

4

QTY(2005-2006) QTY(2006-2007) QTY(2007-2008)

India Exports Statistics Major Product Group 148061375 200285738 17245736

25000000

75000000

125000000

175000000

225000000

India Exports Statistics Major Product GroupIn

lakh

s

Source MOSPI

5

Objective

Is to create employment in rural Karnataka

Generate Business opportunity for agriculture sector in

global market

To create demand and design a marketing strategy for

agriculture products

Setting up of Agro Multiproduct SEZ for Sustainable

development in Agriculture sector

6

Data Collection National sample survey report Economic survey reports Ministry of commerce amp Industry department of commerce Directorate of economic and statistics GOK Planning commission (11th five year plan vol -II) India Agro Industry Directorate of census Operations Karnataka Karnataka statistics statement from GOK site visit SEZ

7

Location Considered for the project

Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)

8

9

10

Why these 4 districts

bull All the four are connected with National highways ie (NH-48 and NH-4)

bull All the four are well connected with Rail link

bull Hassan and Hubli districts are having airstrip

bull Economical and well educated manpower available

bull Number of Educational Institutions polytechnics Engineering colleges and

Technical training institutes

bull All the four are having well irrigated land

bull The agricultural output is good when compare to other districts in the state

bull Favourable weather condition

bull Favourable State Govt Policies till date

bull Situated midway to Mangalore and Bangalore

11

Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like

roads structures and facility parking lots and weighing bridges and cranes etc

bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS

bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh

bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc

bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers

bull Going to rope all the farmers to enjoy the benefits of the project to the max

bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ

bull Creating a Marketing Block for the Agricultural products and sales

Conditions apply

12

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 3: Invest in Karnataka The Land of opportunities

3

Why this project

BANGLADESH 4226239

U ARAB EMTS 2974591

MALAYSIA 1851599NETHERLAND 968552

UK 1055057

PAKISTAN 494771

SRI LANKA 1085744

NEPAL 555943

SAUDI ARA-BIA 457753

USA 203350

KUWAIT 218242

GERMANY 338224

BAHRAIN 246043

SPAIN 279113

QATAR 127809

SINGAPORE 179591

FRANCE 97259

MAURITIUS 170305

OMAN 89979

EGYPT A RP 192295

CANADA 87645

MALDIVES 51889

BELGIUM 178805

INDONESIA 13481

RUSSIA 66086GREECE 88703 ITALY 13944 PHILIPPINES 31601 CHINA P RP 020 UNSPECIFIED 17776AUSTRALIA 25019 NORWAY 9312 REUNION 30748 BRUNEI 25603 SWITZERLAND 31997 SEYCHELLES 10345DENMARK 62623 JAPAN 61844 SWEDEN 27019 NEW ZEALAND 14494 TAIWAN 28992CYPRUS 10945YEMEN REPUBLC 23575IRAN 28319 BAHAMAS 9192 HONG KONG 23414 PORTUGAL 10921LITHUANIA 6294AUSTRIA 21536LATVIA 1994 THAILAND 789IRELAND 4857 TUNISIA 2584 UKRAINE 5713JORDAN 2388SUDAN 15447SOUTH AFRICA 3423ISRAEL 21209BRAZIL 1776ALGERIA 3617 COMOROS 2104 IRAQ 328 UGANDA 897 KENYA 1243 LEBANON 911NIGER 029AFGHANISTAN 116POLAND 2918VIETNAM SOC REP 4449ESTONIA 1061TURKEY 035ICELAND 988TANZANIA REP 056CONGO P REP 024BULGARIA 312ZAMBIA 016KIRIBATI REP 079GUINEA 029MACAO 046KOREA RP 4789NIGERIA 155HUNGARY 326FIJI IS 380AMERI SAMOA 073SOMALIA 9252BOSNIA-HRZGOVIN 1142ARGENTINA 5252GHANA 570MALI 453MALTA 2527GAMBIA 005MOROCCO 1256MEXICO 003NAMIBIA 057NORFOLK IS 126LIBYA 382SLOVAK REP 045ST VINCENTGRE 006ST HELENA 25099ST KITTS NEVIS 042SWAZILAND 2859TAJIKISTAN 035CANARY ISLAND 3039CROATIA 001CONGO D REP 024ALBANIA 161BELIZE 056AZERBAIJAN 019FINLAND 2614FRENCH POLYNESIA 1286ERITREA 057DOMINIC REP 2306GUATEMALA 1160KAZAKHSTAN 002URUGUAY 4154TRINIDAD 224

4

QTY(2005-2006) QTY(2006-2007) QTY(2007-2008)

India Exports Statistics Major Product Group 148061375 200285738 17245736

25000000

75000000

125000000

175000000

225000000

India Exports Statistics Major Product GroupIn

lakh

s

Source MOSPI

5

Objective

Is to create employment in rural Karnataka

Generate Business opportunity for agriculture sector in

global market

To create demand and design a marketing strategy for

agriculture products

Setting up of Agro Multiproduct SEZ for Sustainable

development in Agriculture sector

6

Data Collection National sample survey report Economic survey reports Ministry of commerce amp Industry department of commerce Directorate of economic and statistics GOK Planning commission (11th five year plan vol -II) India Agro Industry Directorate of census Operations Karnataka Karnataka statistics statement from GOK site visit SEZ

7

Location Considered for the project

Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)

8

9

10

Why these 4 districts

bull All the four are connected with National highways ie (NH-48 and NH-4)

bull All the four are well connected with Rail link

bull Hassan and Hubli districts are having airstrip

bull Economical and well educated manpower available

bull Number of Educational Institutions polytechnics Engineering colleges and

Technical training institutes

bull All the four are having well irrigated land

bull The agricultural output is good when compare to other districts in the state

bull Favourable weather condition

bull Favourable State Govt Policies till date

bull Situated midway to Mangalore and Bangalore

11

Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like

roads structures and facility parking lots and weighing bridges and cranes etc

bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS

bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh

bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc

bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers

bull Going to rope all the farmers to enjoy the benefits of the project to the max

bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ

bull Creating a Marketing Block for the Agricultural products and sales

Conditions apply

12

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 4: Invest in Karnataka The Land of opportunities

4

QTY(2005-2006) QTY(2006-2007) QTY(2007-2008)

India Exports Statistics Major Product Group 148061375 200285738 17245736

25000000

75000000

125000000

175000000

225000000

India Exports Statistics Major Product GroupIn

lakh

s

Source MOSPI

5

Objective

Is to create employment in rural Karnataka

Generate Business opportunity for agriculture sector in

global market

To create demand and design a marketing strategy for

agriculture products

Setting up of Agro Multiproduct SEZ for Sustainable

development in Agriculture sector

6

Data Collection National sample survey report Economic survey reports Ministry of commerce amp Industry department of commerce Directorate of economic and statistics GOK Planning commission (11th five year plan vol -II) India Agro Industry Directorate of census Operations Karnataka Karnataka statistics statement from GOK site visit SEZ

7

Location Considered for the project

Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)

8

9

10

Why these 4 districts

bull All the four are connected with National highways ie (NH-48 and NH-4)

bull All the four are well connected with Rail link

bull Hassan and Hubli districts are having airstrip

bull Economical and well educated manpower available

bull Number of Educational Institutions polytechnics Engineering colleges and

Technical training institutes

bull All the four are having well irrigated land

bull The agricultural output is good when compare to other districts in the state

bull Favourable weather condition

bull Favourable State Govt Policies till date

bull Situated midway to Mangalore and Bangalore

11

Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like

roads structures and facility parking lots and weighing bridges and cranes etc

bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS

bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh

bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc

bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers

bull Going to rope all the farmers to enjoy the benefits of the project to the max

bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ

bull Creating a Marketing Block for the Agricultural products and sales

Conditions apply

12

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 5: Invest in Karnataka The Land of opportunities

5

Objective

Is to create employment in rural Karnataka

Generate Business opportunity for agriculture sector in

global market

To create demand and design a marketing strategy for

agriculture products

Setting up of Agro Multiproduct SEZ for Sustainable

development in Agriculture sector

6

Data Collection National sample survey report Economic survey reports Ministry of commerce amp Industry department of commerce Directorate of economic and statistics GOK Planning commission (11th five year plan vol -II) India Agro Industry Directorate of census Operations Karnataka Karnataka statistics statement from GOK site visit SEZ

7

Location Considered for the project

Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)

8

9

10

Why these 4 districts

bull All the four are connected with National highways ie (NH-48 and NH-4)

bull All the four are well connected with Rail link

bull Hassan and Hubli districts are having airstrip

bull Economical and well educated manpower available

bull Number of Educational Institutions polytechnics Engineering colleges and

Technical training institutes

bull All the four are having well irrigated land

bull The agricultural output is good when compare to other districts in the state

bull Favourable weather condition

bull Favourable State Govt Policies till date

bull Situated midway to Mangalore and Bangalore

11

Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like

roads structures and facility parking lots and weighing bridges and cranes etc

bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS

bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh

bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc

bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers

bull Going to rope all the farmers to enjoy the benefits of the project to the max

bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ

bull Creating a Marketing Block for the Agricultural products and sales

Conditions apply

12

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 6: Invest in Karnataka The Land of opportunities

6

Data Collection National sample survey report Economic survey reports Ministry of commerce amp Industry department of commerce Directorate of economic and statistics GOK Planning commission (11th five year plan vol -II) India Agro Industry Directorate of census Operations Karnataka Karnataka statistics statement from GOK site visit SEZ

7

Location Considered for the project

Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)

8

9

10

Why these 4 districts

bull All the four are connected with National highways ie (NH-48 and NH-4)

bull All the four are well connected with Rail link

bull Hassan and Hubli districts are having airstrip

bull Economical and well educated manpower available

bull Number of Educational Institutions polytechnics Engineering colleges and

Technical training institutes

bull All the four are having well irrigated land

bull The agricultural output is good when compare to other districts in the state

bull Favourable weather condition

bull Favourable State Govt Policies till date

bull Situated midway to Mangalore and Bangalore

11

Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like

roads structures and facility parking lots and weighing bridges and cranes etc

bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS

bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh

bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc

bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers

bull Going to rope all the farmers to enjoy the benefits of the project to the max

bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ

bull Creating a Marketing Block for the Agricultural products and sales

Conditions apply

12

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 7: Invest in Karnataka The Land of opportunities

7

Location Considered for the project

Following districtrsquos are the preferred location for the project Hubli Hassan Tumkur (Turuvekere) Mandya (Nagamangala)

8

9

10

Why these 4 districts

bull All the four are connected with National highways ie (NH-48 and NH-4)

bull All the four are well connected with Rail link

bull Hassan and Hubli districts are having airstrip

bull Economical and well educated manpower available

bull Number of Educational Institutions polytechnics Engineering colleges and

Technical training institutes

bull All the four are having well irrigated land

bull The agricultural output is good when compare to other districts in the state

bull Favourable weather condition

bull Favourable State Govt Policies till date

bull Situated midway to Mangalore and Bangalore

11

Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like

roads structures and facility parking lots and weighing bridges and cranes etc

bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS

bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh

bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc

bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers

bull Going to rope all the farmers to enjoy the benefits of the project to the max

bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ

bull Creating a Marketing Block for the Agricultural products and sales

Conditions apply

12

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 8: Invest in Karnataka The Land of opportunities

8

9

10

Why these 4 districts

bull All the four are connected with National highways ie (NH-48 and NH-4)

bull All the four are well connected with Rail link

bull Hassan and Hubli districts are having airstrip

bull Economical and well educated manpower available

bull Number of Educational Institutions polytechnics Engineering colleges and

Technical training institutes

bull All the four are having well irrigated land

bull The agricultural output is good when compare to other districts in the state

bull Favourable weather condition

bull Favourable State Govt Policies till date

bull Situated midway to Mangalore and Bangalore

11

Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like

roads structures and facility parking lots and weighing bridges and cranes etc

bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS

bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh

bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc

bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers

bull Going to rope all the farmers to enjoy the benefits of the project to the max

bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ

bull Creating a Marketing Block for the Agricultural products and sales

Conditions apply

12

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 9: Invest in Karnataka The Land of opportunities

9

10

Why these 4 districts

bull All the four are connected with National highways ie (NH-48 and NH-4)

bull All the four are well connected with Rail link

bull Hassan and Hubli districts are having airstrip

bull Economical and well educated manpower available

bull Number of Educational Institutions polytechnics Engineering colleges and

Technical training institutes

bull All the four are having well irrigated land

bull The agricultural output is good when compare to other districts in the state

bull Favourable weather condition

bull Favourable State Govt Policies till date

bull Situated midway to Mangalore and Bangalore

11

Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like

roads structures and facility parking lots and weighing bridges and cranes etc

bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS

bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh

bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc

bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers

bull Going to rope all the farmers to enjoy the benefits of the project to the max

bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ

bull Creating a Marketing Block for the Agricultural products and sales

Conditions apply

12

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 10: Invest in Karnataka The Land of opportunities

10

Why these 4 districts

bull All the four are connected with National highways ie (NH-48 and NH-4)

bull All the four are well connected with Rail link

bull Hassan and Hubli districts are having airstrip

bull Economical and well educated manpower available

bull Number of Educational Institutions polytechnics Engineering colleges and

Technical training institutes

bull All the four are having well irrigated land

bull The agricultural output is good when compare to other districts in the state

bull Favourable weather condition

bull Favourable State Govt Policies till date

bull Situated midway to Mangalore and Bangalore

11

Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like

roads structures and facility parking lots and weighing bridges and cranes etc

bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS

bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh

bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc

bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers

bull Going to rope all the farmers to enjoy the benefits of the project to the max

bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ

bull Creating a Marketing Block for the Agricultural products and sales

Conditions apply

12

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 11: Invest in Karnataka The Land of opportunities

11

Highlight of Project bull Providing High end infrastructure for agro industries in SEZ like

roads structures and facility parking lots and weighing bridges and cranes etc

bull Services like power 100 power back up treatment plants HVAC system CCTV in common areas BMS

bull More than 50 thousand direct employment will be created and indirect employment more than 15 lakh

bull Amenities like Convention Halls Business hotels amp auditoriums Hotel for refreshments Health clubs etc

bull operation and maintenance of entire Infrastructure with in the SEZ Security in the open space and common areas will be done by the developers

bull Going to rope all the farmers to enjoy the benefits of the project to the max

bull Hospitals agricultural equipment industries R amp D centres for agriculture sector etc will be housed in this SEZ

bull Creating a Marketing Block for the Agricultural products and sales

Conditions apply

12

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 12: Invest in Karnataka The Land of opportunities

12

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 13: Invest in Karnataka The Land of opportunities

13

Multiple Benefits The focus on value addition in the agriculture sector is vital for

comprehensive development of the rural economy

Since the food processing industry creates jobs demand for agri

raw materials leads to diversification and commercialization of

agriculture enhancing the incomes of farmers and creating

surpluses for export of agro foods

The broad-based development of the food processing industry will

improve both the social and physical infrastructure of rural India

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 14: Invest in Karnataka The Land of opportunities

14

SWOT ANALYSIS

Strength Opportunities

Agro Multi product SEZ

bull Supporting Infrastructure bull strategic locationsbull well connected by road rail and Airbull excellent Business lease modelbull Economical labour amp Govt initiativebull Skilled Manpower bull excellent supply of agri

products

bull No regulatory framed work available for Agro sector Specific bull Green field project bull untapped sector bull political and community attitude

Weakness Threats

bull Hassan textile SEZbull Mangalore Multi product SEZ bull Govt Policies bull Nandhgudi SEZ near Bangalore

bull Generates employment amp investmentbull Enhance income of farmersbull leads to diversification and commercialization of agriculturebull As there is no Agro Sector Specific MSEZ in INDIAbull there exists a huge

opportunity for related industry in agriculture

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 15: Invest in Karnataka The Land of opportunities

15

Recommendations

bull To design the Sector specific policies for Agriculture sector

bull To give the unique permission to sell the products with

INDIA and should give all the incentive and tax holidays

slightly longer than the other commercial SEZ

bull Govt Should ensure the process of approvals to be smooth

and single window clearance need to be ensured etc

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 16: Invest in Karnataka The Land of opportunities

16

SEZ ndash An Overview

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 17: Invest in Karnataka The Land of opportunities

17

Overview

bull Introduced by erstwhile Export Import Policy in April 2000 to provide internationally

competitive and conducive environment for exports

bull Various fiscal non fiscal incentives benefits provided to developer and units in SEZ

bull Earlier controlled by Foreign Trade Policy and Customs Act 1962 and regulations

notified there under

bull Special Economic Zone Act (lsquoSEZ Actrsquo) enacted in 2005 to provide comprehensive

legislation in relation to SEZs

bull SEZ ndash deemed to be territory outside the Customs territory of India in relation to

authorized operation

bull Can be set up by private public joint sector or State Government or its agencies for

manufacture of goods or rendering of services or both or as a Free Trade Warehousing

Zone

bull Goods and services going into the SEZ from DTA treated as exports and goods and

services coming from the SEZ to DTA treated as importsbull SEZ deemed to be a airport port inland container depot land customs station under

the Customs Act

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 18: Invest in Karnataka The Land of opportunities

18

Legislative Framework

SEZ Act 2005SEZ Act 2005 SEZ Rules 2006SEZ Rules 2006

bull Basic framework for setting up and operation of SEZs prescribed under the Act

bull Rules lays down guidelines for giving effect to the SEZ scheme prescribed under the Act

SEZ Rules 2006SEZ Rules 2006SEZ Act 2005SEZ Act 2005

State SEZ PolicyState SEZ Policy

bull Lays down guidelines for giving effect to the SEZ scheme prescribed under SEZ Act 2005

bull Policy provides for substantive and procedural benefits offered by the State to Developer Units

State SEZ PoliciesState SEZ Policies

SEZ Act 2005 amp SEZ Rules 2006 notified on 10 February 2006

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 19: Invest in Karnataka The Land of opportunities

19

Legislative Framework

bull Chapter X-A of the Customs Act along with the SEZ Rules 2003 and SEZ (Customs Procedure) has been rescinded with effect from 10 February 2006

bull All the rules and notification under other laws in relation to the SEZ shall remain in force to the extent they are not inconsistent with the SEZ Act 2005 and Rules made there under

bull Provisions of the SEZ Act 2005 override inconsistent provisions of any other law in force at the time of commencement of the SEZ Act 2005

SEZ Act specifies exemption for the developer and units in the SEZ from Customs Excise Service Tax Central Sales Tax etc However it is not clear as to whether this would require specific notification under the respective legislations or whether the specific exemption provided under SEZ Act would suffice

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 20: Invest in Karnataka The Land of opportunities

20

Key Stakeholders

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 21: Invest in Karnataka The Land of opportunities

21

Key Stakeholders

DeveloperDeveloper

bull Person who obtains Letter of Approval from the Central Government to establish the SEZ and undertake authorised operations

bull SEZ Act also envisages lsquomultiple developersrsquo for the SEZ When one Developer does not possess minimum contiguous land to develop an SEZ Central Government may approve more than one Developer

bull Co-developer is a person who intends to provide infrastructural facilities in an SEZ along with a developer

bull Co-developer enters into an agreement with Developer and obtain requisite permission as per the SEZ Act and Rules

Co-DeveloperCo-Developer

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 22: Invest in Karnataka The Land of opportunities

22

Key Stakeholders

bull Contractor can be appointed by developer co-developer to undertake authorized operations in SEZ

bull Contractor can avail all exemptions drawbacks and concessions available to the Developer co-developer

bull All documents shall bear the name of developer co-developer along with the contractor

SEZ UnitsSEZ Units

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

Units in SEZ can undertake

bull Manufacturingbull Rendering of services bull Trading bull Warehousing

In relation to authorized operation of the SEZ

ContractorContractor

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 23: Invest in Karnataka The Land of opportunities

23

Key Regulators

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 24: Invest in Karnataka The Land of opportunities

24

Considers proposals for setting up SEZ and Units in SEZ

Considers proposals for setting up of Units in SEZ monitoring performance and supervises import procurement by Developer Units in SEZ

Development Commissioner

Board of Approval

For administrative control of the SEZ

Approval Committee

Key Regulators

SEZ Authority

State Government

Receives and forwards the proposal with recommendations to the Board of Approval

Overall authority for governing notifying the SEZ and granting the letter of approval

Central Government

Undertakes measures for the development operation and management of the SEZ

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 25: Invest in Karnataka The Land of opportunities

25

Benefits Available

Available to Developer Available to Suppliers

Central Benefitsbull Customsbull Other Miscellaneous Taxes and

Leviesbull Income Taxbull Dividend Distribution Taxbull Minimum Alternate Tax

State Benefitsbull Electricitybull Labour

Central Benefitsbull Central Excisebull Service Taxbull Central Sales Taxbull Drawback DEPB

State Benefitsbull Sales Tax VATbull Entry Tax Octroi

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 26: Invest in Karnataka The Land of opportunities

26

Incentives and facilities offered to the SEZs

bull The incentives and facilities offered to the units in SEZs for attracting investments into

the SEZs including foreign investment include-

bull Duty free importdomestic procurement of goods for development operation and

maintenance of SEZ units

bull 100 Income Tax exemption on export income for SEZ units under Section 10AA of the

Income Tax Act for first 5 years 50 for next 5 years thereafter and 50 of the

ploughed back export profit for next 5 years

bull Exemption from minimum alternate tax under section 115JB of the Income Tax Act

bull External commercial borrowing by SEZ units up to US $ 500 million in a year without any

maturity restriction through recognized banking channels

bull Exemption from Central Sales Tax

bull Exemption from Service Tax

bull Single window clearance for Central and State level approvals

bull Exemption from State sales tax and other levies as extended by the respective State

Governments

Source from wwwsezindiagovin

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 27: Invest in Karnataka The Land of opportunities

27

Benefits Available (Contd)

bull Under the provisions of the SEZ Act 2005 and the SEZ Rules 2006

exemptions are made available to Developer Unit and to their suppliers

bull The SEZ Rules 2006 provide that state governments lsquoshall endeavorrsquo to

provide exemptions concessions with respect to sales tax VAT

electricity duty etc

bull The exemption concession has to be refunded by developer if-

ndash Developer does not utilise the goods or services for authorised

operations

ndash Unable to duly account for the goods and services for authorised

operations

bull Duty drawback or any other export entitlement on DTA supplies to be paid

back by the developer in case of destruction of goods in a natural calamity

ndash Not required where payment made in foreign exchange

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 28: Invest in Karnataka The Land of opportunities

28

Exemption from payment of taxes duties or cess on any export or import of goods or services from the SEZ or on procurement of goods or services from the DTA under the following legislations-

- Agricultural Produce Cess Act 1940

- Coffee Act 1942

- Mica Mines Labour Welfare Fund Act 1946

- Rubber Act 1947

- Tea Act 1953

- Salt Cess Act 1953

- Medicinal and Toilet Preparations (Excise Duties) Act 1955

- Additional Duties of Excise (Goods of Special Importance) Act 1957

- Sugar (Regulation of Production) Act 1961

- Textiles Committee Act 1963

- Produce Cess Act 1966

- Marine Products Export Development Authority Act 1972

- Coal Mines (Conservation and Development Act 1974

- Oil Industry (Development) Act 1974

- Tobacco Cess Act 1975

- Additional Duties of Excise (Textile and Textile Articles) Act 1978

- Sugar Cess Act 1982

- Jute Manufactures Cess Act 1983

- Agricultural and Processed Food Products Export Cess Act 1985

- Spices Cess Act 1986

- Research and Development Cess Act 1986

Miscellaneous Benefits ndash Central Laws

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 29: Invest in Karnataka The Land of opportunities

29

Setting up of SEZ Basic Concepts

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 30: Invest in Karnataka The Land of opportunities

30

Key Concepts

Infrastructural Facilities

Infrastructural Facilities

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

Infrastructure facilities means industrial commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed

InfrastructureInfrastructure

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

Infrastructure means facilities needed for development operation and maintenance of a Special Economic Zone and includes industrial business and social amenities like development of land roads buildings sewerage and effluent treatment facilities solid waste management facilities port including jetties single point moorings storage tanks and interconnecting pipelines for liquids and gases Inland Container Depot or Container Freight Station warehouses airports railways transport system generation and distribution of power gas and other forms of energy telecommunication data transmission network information technology network hospitals hotels educational institutions leisure recreational and entertainment facilities residential and business complex water supply including desalination plant sanitation facility

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 31: Invest in Karnataka The Land of opportunities

31

Role of Developer

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 32: Invest in Karnataka The Land of opportunities

32

Role of the Developer

Developer required to undertake authorised operations in relation to ndash

Development of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating UnitsDevelopment of SEZ Creation of infrastructure (such as roads ports electricity water etc) and allocation of space built up area for setting up and operating Units

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

Operation and Maintenance of SEZ Day to day operation and maintenance of the SEZ and providing infrastructure facility to the Units set up in the SEZ to ensure their smooth functioning

bull Authorized operations not defined in SEZ Act or Rules

Mainly role of Developer is to undertake development operation and maintenance of infrastructure and provision of infrastructure facilities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 33: Invest in Karnataka The Land of opportunities

33

Approval Criteria

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 34: Invest in Karnataka The Land of opportunities

34

Who can be a SEZ developer

bull SEZ can be set up jointly or severally by

ndash Central Government

ndash State government

ndash Any person (incl Private Public limited Company

Partnership or Proprietorship)

Section 3(1)

Approval Criteria ndash Applicant

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 35: Invest in Karnataka The Land of opportunities

35

Authorised OperationsAuthorised Operations bull Comprehensive

Approval Criteria ndash Multi product SEZ

SizeSize

bull Minimum contiguous area of 1000

hectares (200 hectares in specified states) bull Exclusive SEZ for Services to have a

minimum contiguous area of 100 hectares

Processing AreaProcessing Area bull Minimum 25 of SEZ area to be demarcated

as processing area

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 36: Invest in Karnataka The Land of opportunities

36

Authorised OperationsAuthorised Operations

Indicative Sectors- Engineering textile garments pharmaceuticals chemicals handicrafts gems amp jewellery electronic hardware and software (incl ITES) bio tech and non conventional energy

Approval Criteria ndash Sector specific SEZ

SizeSize

Processing AreaProcessing Area bull Minimum 50 area for processing area (for export related

activities)

bull Minimum contiguous area of 100 hectares (50 hectares in specified states)

bull Electronic hardware and software including ITES ndash 10 hectares with min built up processing area of 100000 sq meters

bull Bio tech Non conventional energy (incl solar energy equipment) and Gems amp Jewellery sector ndash 10 hectares

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 37: Invest in Karnataka The Land of opportunities

37

Authorised OperationsAuthorised Operations Primarily trading and warehousing activities

Approval Criteria ndash Free Trade amp Warehousing Zone

SizeSize

Processing AreaProcessing Area Not specified however minimum built up area should be 100000 sq meters

bull Minimum 40 hectares bull No minimum area limit for setting up the

SEZbull Maximum area not to exceed 20 percent of

processing area

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 38: Invest in Karnataka The Land of opportunities

38

Approval Criteria

bull Area identified for SEZ to be contiguous and vacant with no public thoroughfare

(BOA may approve otherwise on a case to case on merits in case of Multi Product SEZ only)

Term lsquocontiguousrsquo not defined under the SEZ Act 2005 or SEZ Rules 2006

Concise Oxford English Dictionary defines contiguous to mean- lsquosharing a common border next or together in sequencersquo

bull Additional area can be included in the existing SEZ Minimum area of additional area not specified

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 39: Invest in Karnataka The Land of opportunities

39

Approval Process

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 40: Invest in Karnataka The Land of opportunities

40

Application to State Government or Board of Approval (BOA)

Section 3(2) amp 3(3) Rule 3

Approval Process

Forwards proposal to BOA with recommendations within 45 days of receipt of proposal

Section 3(6) and Rule 4

BOA approves proposal subject to such terms and conditions as it may specifySection3(7) amp 3(9) Rule 5

Approval Communicates to the Central Government

In case proposal is directly submitted to BOA applicant to obtain concurrence of the State Government within 6 months of

approval by BOA (Rule 4)

State Government

Applicant

Board of Approval

2

1 1

3

ModificationCommunicates to the

applicant

RejectionCommunicates the reasons to Central Government which shall

intimate the same to the applicant

Applicant refers to applicant for the development of SEZ other than Central or State Government

4 Conthellip

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 41: Invest in Karnataka The Land of opportunities

41

Approaches DC for demarcation of

Processing Non Processing Area

Applies to Approval Committee for permission of

procurement items

Submit details of proposed operations

Approves authorized operations

Board of Approval

Ministry of Commerce grants a Letter of Approval (LOA) to DeveloperSection 4 Rule 6

Central Government

Submit details of identified area to

Ministry of Commerce

Developer

Notification of SEZ by Central Government

(Ministry of Commerce)

4

5a5b

6

7b

Approval Process ndash Post LOA

Developer

On agreement with Developers to apply for an LOA

Co-Developer

7a

8b Conthellip8a Conthellip

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 42: Invest in Karnataka The Land of opportunities

42

Approves import and procurement of goodsRule 10

Approval Committee8a

Approval Process ndash Post Notification

Demarcates Processing Non Processing AreaRule 11

DC8b

9Obtains IEC and executes Bond cum-Legal Undertaking and follows General

Conditions of importRule 12 amp 14

Developer

Avails duty concession on import procurement and commence operation

Developer

For details refer to Annexure 3

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 43: Invest in Karnataka The Land of opportunities

43

Approval Process ndash Co-developer

Action steps for Co-developer bull Enters into an agreement with developer to provide infrastructure facilities or

undertake authorized operations in SEZbull Approaches BOA to seek approval for status as a Co-developer bull Follows the procedure of approval as applicable to developer to obtain LOA

from Central Government (Ministry of Commerce)bull However state government recommendations not required

Developer may specify the requirement of Co-developer at the proposal stage

Although SEZ Act and Rules are silent on this aspect specifying co-developers

requirement at proposal stage may expedite the process of obtaining LOA for

co-developer at a later stage

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 44: Invest in Karnataka The Land of opportunities

44

Initiative

Community attitude

Cleaner amp greener facilities

Labor safety amp medical care

Cleaner amp greener facilities

Zero tolerance for pollution

Maintain natural resources

Creating opportunity for local people

For successful sustainable development

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 45: Invest in Karnataka The Land of opportunities

45

Products related to the Agriculture and Food Industry

bull Bakery amp Confectionery ProductsBakery Biscuits Chocolate Chip Chocolates Cocoa Confectionaries Confectionery

Cookies Deoiled Cake Drinking Chocolates Bread Cakes Malted Foods Sweets

Pastry Toffees

bull Cattle Feed SupplementsCattle Feed Animal Feed Animal Feeding Stuffs Fodder

bull Child Care amp Nursery ProductsBaby Care Products Baby Feeding Products

bull Dry Fruits amp NutsDry fruits Cashew Kernels Cashew Nut Cashews Almonds Roasted Dry Fruits

Peanuts Groundnut Walnut Kernels Walnuts Indian Peanuts HPS Groundnuts

bull Dyes amp Color AdditivesAZO Dyes Bleaching Machinery Colours Color Additives Colour Additives Cottex

Dyeing Dye intermediates Dye Makers Dyes Dyestuffs Cationic Dyestufs Acid Dyes

Reactive Dyes Pigments Fabric Dyeing Textile Dyeing Vet Dye

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 46: Invest in Karnataka The Land of opportunities

46

Products related to the Agriculture and Food Industry

contbull Edible Oil amp Allied Products

Coconut Oil Cooking Fats Cooking Oil Cumin Seed Oil Edible Oil Castor Oil CelerySeed Oil Ajowan Oil Margarine Oil Refined Oil Refined Vegetable Oil Rice Bran Oil Sesame Oil Sunflower Oil Mustard Oil Groundnut Oil Herb Oil Vanaspathi GheeVegetable Oil Vegetable Oil Oil Products Table Margarine

bull Fertilizers

Bio Fertilizers Chemical Fertilizers Agriculture Fertilzers Natural Fertilizers Nonhazardous

Bio Fertilizers Non-toxic Fertilizers Organic Fertilizers Organic ManureFertiliser Mixtures Fertilisers Fertilizer Mixtures Fertilizers Urea Fertilizers

bull Flowers Floriculture amp Dried Flowers

Dried Floral Items Dried Flowers Dry Flower Bouquets Cane Flowers Lotus Pods shola Flowers Palm Leaf Floriculture Flowers Foliage Handmade Flowers

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 47: Invest in Karnataka The Land of opportunities

47

Products related to the Agriculture and Food Industry

contbull Food Processing Plants Machinery amp Equipment

Bakery Equipment Dairy Equipments Dairy Farms Equipment Food Grain MachineFood Processing Equipment Frying System Spray Dryers

bull Fresh Dried Preserved amp Dehydrated Fruits and Vegetables

Bananas Dried Bananas Fresh Beans Cherry Cucumbers Dried Fruits DriedTruffles Dried Vegetables Carrots Lemon Mandarins Mangosteens Meslin ShallotsSpinach Mixed Vegetables Mushroom Mushroom Spawn Oranges Fresh PapayaPineapple Potatoes Fresh Preserved Fruits Preserved Vegetables Radiata DriedFresh Apples Fresh Asparagus Fresh Fruits Fresh Grapes Fresh Oranges FreshVegetables Gherkins Grapes Fresh Turnips

bull Liquors Mineral Water amp Beverages

Beverages Bewerages Brandy Aerated Water Aerated Waters Alcoholic Beverage Liquors Rum Sandpiper Schweppes Soft Drinks Spring Water Mineral Water FatLiquors Gin Vodka Whisky Wine Indian Liquor Indian Wine

bull Marine Food Supplies

Dried Beche-de-mer Dry Fish Aqua Foods Marine Food Marine Products SeaCucumber Sea Food Shrimps Prawns Frozen Marine Products IQF

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 48: Invest in Karnataka The Land of opportunities

48

Products related to the Agriculture and Food Industry

contbull Meat amp Poultry Food

Bacon Egg Livestock Lyoners Meat Mortadella Peppero Poultry Feed Poultry Food Frozen Meats Ham

bull Milk amp Dairy ProductsCheese Spread Condensed Milk Curd Dairy Products Dairy Whitener Dry YeastButter Cheese Ice Cream Ice Cream Corns Shrikhand Milk Milk Cans Milk Powder Milk Products Paneer Extract Powder Flavoured Milk Yeast

bull Natural Dried Live and Grafted PlantsLive Plants Natural Dried Plants Natural Plants grafted Plants

bull Other Miscellaneous Agro ProductsBajra Barley Dried Marine Products Cane Jaggery Agro Commodities Agro Product Jaggery Powder Sorbitol Soya Meals Starch Sugar Namkeens Natural Honey Onions Papad Flour Foodstuffs Glucose Gluten Groundnuts Honey

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 49: Invest in Karnataka The Land of opportunities

49

Products related to the Agriculture and Food Industry

contbull Pet-Use Products Feeds Pet Furniture amp Allied Products

Dog Biscuits Raw Hide Bones Pet Feeds Pet Products Pet-Use Products Equestarian Goods Equestarian Harness

bull Pickles Chutneys Ketchups amp SaucesChilly sauce Chutney Chutnies Ketchups Lemon Pickles Mango Pickles SaucesSoya Sauce Synth Vinegar Mustard Sauce Pepper Sauce Pickles Garlic Sauce Tomato Ketchups Tomato Sauce

bull Processed Food amp SnacksCanned Fish Canned Food Malt Extract Snacks Soup Soup Concentrate SoupPowder Porridge Potato Wafers Processed Chicken Processed Foods ProcessedSeafoods Processed Snacks Fish amp Sea Food Frozen Fish Frozen Meat FrozenShrimps

bull Rice Wheat Pulses amp Other Food GrainsCereals Maida Maize Rice Rice Bran Extractions Rice Mill Machinery

SorghumSoymeal Suji Parmal Pulses Wheat Flour Wheat Machinery

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 50: Invest in Karnataka The Land of opportunities

50

Products related to the Agriculture and Food Industry

contbull Seeds Buds Plantation amp Related Products

Basil Seed Cumin seeds Dill Seed Buds Cellery Seed Hybrid Seeds SeedsSesame Seeds Sesbania Seed Sunflower Seeds Mustard Seeds Oil Seeds PlantProducts Plantation Plants Psyllium Seed Fennel Seed Fenugreek Seed HerbSeeds Tamarind Seed Vegetable Seeds

bull Spices amp DerivativesBlack Pepper Chilli Powder Chillies Cinnamon Cloves Coriander Powder CuminCurry Powders Dry Ginger Dry Red Chilly Elaichi Cardamom Chat Masala ChatniAnise Indian Spices Salt Spices Spices From India Onion Powder PepperFenugreek Seeds Garam Masala Ginger Hot Spices Turmeric Turmeric Powder

bull Tea amp CoffeeBlack Tea Coffee Coffee Beans Darjeeling Teas Assam Teas Indian Tea InstantCoffee Leaf Coffee Leaf Tea Packaged Tea Green Tea Tea Tea Bags CTC Teas

bull Tobacco amp Tobacco ProductsBeedi Betalnut Leaves Betalnut Supari Bidi Bidi Leaves Chewing Tobacco Cigarettes Arecanut Jarda Scented Tobacco Smoking Items Smokking Tobbacco Snuff Supari Opium Pan Chatni Pan Masala Pan Parag Tobbacco TobbaccoProducts Tulsi Mix Gutkazarda Tulsi Zarda Tobacco Zafrani Zarda

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 51: Invest in Karnataka The Land of opportunities

51

AGRI Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture

While agriculture contributes about 25 per cent of Indias GDP the value added by the processing industry is only 8 per cent of total food production

For example only two per cent of horticulture products are estimated to be processed and more than 30 per cent of production is wasted due to lack of storage and processing facilities

Agri industries help strengthen the farm sector and stabilize rural

incomes

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52
Page 52: Invest in Karnataka The Land of opportunities

52

BIG BUSINESS HOUSE | 72 4TH A CROSS JPNAGAR 6TH PHASE BANGALORE 560078 | INDIA

INFOBIGINFRANET | WWWBIGINFRANET| +19 65633112

  • Karnataka land of opportunities
  • Presentation flow
  • Why this project
  • Slide 4
  • Objective
  • Data Collection
  • Location Considered for the project
  • Slide 8
  • Slide 9
  • Why these 4 districts
  • Highlight of Project
  • Agri industries help strengthen the farm sector and stabilize r
  • Multiple Benefits
  • SWOT analysis
  • Recommendations
  • SEZ ndash An Overview
  • Overview
  • Slide 18
  • Legislative Framework
  • Slide 20
  • Key Stakeholders
  • Key Stakeholders (2)
  • Slide 23
  • Slide 24
  • Benefits Available
  • Incentives and facilities offered to the SEZs
  • Benefits Available (Contd)
  • Slide 28
  • Slide 29
  • Key Concepts
  • Slide 31
  • Role of the Developer
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Approval Process
  • Approval Process ndash Post LOA
  • Approval Process ndash Post Notification
  • Approval Process ndash Co-developer
  • For successful sustainable development
  • Products related to the Agriculture and Food Industry
  • Products related to the Agriculture and Food Industry cont
  • Products related to the Agriculture and Food Industry cont (2)
  • Products related to the Agriculture and Food Industry cont (3)
  • Products related to the Agriculture and Food Industry cont (4)
  • Products related to the Agriculture and Food Industry cont (5)
  • Agri industries help strengthen the farm sector and stabilize r (2)
  • Slide 52