What benefits are available to a new SEZ unit I want to start in Bhubaneswar under the state special economic zone policy?

Detailed Legal Analysis

A new Special Economic Zone (SEZ) unit in Bhubaneswar can avail numerous benefits under the state and central policies aimed at promoting economic development and investment. These incentives are designed to enhance the competitiveness of SEZs and encourage foreign and domestic investments.

Here are the key benefits available to a new SEZ unit:

• Tax Incentives:
  • 100% Income Tax exemption for the first five years as per Section 10AA of the Income Tax Act, 1961.
  • 50% exemption for the next five years.
  • Exemption from Goods and Services Tax (GST) on supplies made to the SEZ unit.
• Customs Duty Exemption:
  • No customs duty on import of goods for the unit.
  • Exemption from excise duty on goods produced in the SEZ.
• Infrastructure Support:
  • Access to developed infrastructure facilities within the SEZ.
  • Support for utility services such as water, electricity, and transportation.
• Single Window Clearance:
  • Facilitated approvals and clearances from various government departments through a single window system.
  • Faster processing of approvals compared to non-SEZ units.
• Labour Law Relaxations:
  • Flexibility in labor regulations, making it easier to hire and manage employees.
  • Special provisions for employment generation and skill development.
• State Incentives:
  • Additional incentives may be provided by the Odisha state government under the Odisha Industries Policy, 2015.
  • Support for investment in technology and research and development.

To establish a SEZ unit, compliance with the SEZ Act, 2005 and the SEZ Rules, 2006 is essential. It is also important to register with the Development Commissioner for the SEZ and obtain the required approvals and licenses.

In summary, starting a new SEZ unit in Bhubaneswar offers substantial financial and operational benefits, encouraging both local and international investments while contributing to economic growth in the region.