The Politics of Economic Restructuring in India: Economic Governance and State Spatial Rescaling by Loraine Kennedy

Author:Loraine Kennedy [Kennedy, Loraine]
Language: eng
Format: epub
Tags: Ethnic Studies, Social Science, Political Science, Regional Studies, General
ISBN: 9781317937982
Google: ZoliAgAAQBAJ
Goodreads: 20310385
Publisher: Routledge
Published: 2013-12-17T00:00:00+00:00

Another commonly stated rationale for pursuing SEZ is that India’s requirements in infrastructure are so great that the government could not possibly take them up on its own. By framing a comprehensive package of fiscal incentives (tax holidays, de-taxed inputs), the aim is that private investors, both domestic and international, will come forward and develop the much-needed infrastructure, introducing state-of-the-art technology in the process. Individual firms will then lease space within these zones from the promoters, either turnkey premises or a plot to build their own plants. These firms or ‘units’ are eligible too for tax holidays (100 per cent exemption on export income for the first five years, 50 per cent for the next five, and 50 per cent on reinvested export profits for five more years) as well as tax exemptions on all inputs from the domestic trade area or from imports.

Beyond state-of-the-art production platforms, the SEZ law seeks to create ‘self-contained zones’ that include non-processing areas, for residential and commercial purposes, in addition to the processing area, used for producing goods and services. In other words, an SEZ is intended to be a private township, wherein the SEZ developer would take over the role of the local municipal government:

In fact, the SEZ developer would have to fill in all the processes and services that would be needed for the SEZ units to operate at peak efficiency. These services include civic amenities, infrastructure such as roads, sewage disposal, green/open spaces, housing, supply of power and water, and education. Self-sufficiency and planned infrastructure have the added advantage that non-processing areas can be kept free of unplanned habitation like slums, which might later turn into a political fait accompli.

(Menon and Mitra 2009: 16)

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.