First SEZ in Tripura to focus on agro-based food processing

The Government of India approved the first SEZ (Special Economic Zone) at Sabroom, Tripura in October 2019. Recently, it was announced that the SEZ will primarily focus on agro-based food processing. Union Government is expected to invest around Rs 1550 crore in the project.

Highlights

The SEZ is to be developed by the Tripura Industrial Development Corporation. The SEZ will focus on rubber based industries like threads, tyres, bamboo industries, textile and apparel industries and agri-food processing industries.

According to SEZ rules minimum of 25 hectares of land is required to set up a new SEZ in the North Eastern States. However, at present only 16.35 hectares have been acquired from the state government and additional 10.99 hectares of land contiguous to the existing land is waiting for approval.

Significance

The SEZ is expected to generate 12,000 skiled jobs. The zone will attract more private investments as its location is nearer to Chittagong Port. Also, the access to the zone will increase after the construction of bridge across Feni river in South Tripura.

GoI also announced that 100% income tax exemption will be provided on export income for the first 5 years on SEZ units. The exemption is being given under Section 10AA of Income Tax Act. For the next 5 years, 50% exemption is to be provided.

Month: Current Affairs - December, 2019