Special Economic Zones in Odisha (SEZ)
In this post we discuss about Special Economic Zones in Odisha That help to your upcoming Competitive Exam.
1. Introduction to Special Economic Zones (SEZs)
- Definition: An SEZ is a specifically delineated duty-free enclave treated as foreign territory for the purpose of trade operations, duties, and tariffs. It offers a liberal economic regime to encourage investment and facilitate exports.
- Purpose: To overcome infrastructural bottlenecks and an unstable fiscal regime that businesses faced in the past, and to attract Foreign Direct Investment (FDI) and boost exports.
2. The SEZ Act, 2005
- Background: India’s SEZ policy was initially introduced in 2000. To provide a stable and transparent policy framework, the Special Economic Zones Act, 2005 was enacted by the Parliament in May 2005 and came into effect on February 10, 2006, along with the SEZ Rules, 2006.
- Objectives of the SEZ Act:
- Generation of additional economic activity.
- Promotion of exports of goods and services.
- Promotion of investment from domestic and foreign sources.
- Creation of employment opportunities.
- Development of infrastructure facilities.
- Key Features of the Act:
- Simplified procedures for setting up and operating SEZs and units within them.
- Single-window clearance mechanism for Central and State Government approvals.
- Simplified compliance procedures and documentation with an emphasis on self-certification.
- Fiscal incentives and tax benefits for SEZ developers and units.
- Provision for a Board of Approval (BoA) at the central level for approving SEZ proposals.
- A Development Commissioner (DC) is appointed for each SEZ for its administration.
3. Incentives and Facilities for SEZ Units
- Duty-free import/domestic procurement: Goods for development, operation, and maintenance of SEZ units are exempt from duties.
- Income Tax Exemption: 100% Income Tax exemption on export income for SEZ units for the first 5 years, 50% for the next 5 years, and 50% of the ploughed back export profit for the next 5 years (under Section 10AA of the Income Tax Act).
- GST Benefits: Supplies to SEZs are “zero-rated” under the IGST Act, 2017, meaning they are treated as exports and are exempt from GST.
- Exemption from other taxes: Earlier exemptions from Central Sales Tax, Service Tax, State sales tax (now subsumed under GST).
- No license required for imports.
- 100% FDI allowed in the manufacturing sector (barring a few segments).
- Infrastructure: SEZs typically offer world-class infrastructure, including reliable power supply, efficient transportation networks, and modern facilities.
4. Special Economic Zones in Odisha
Odisha has been actively promoting SEZs to attract investment, especially in sectors like IT/ITES, manufacturing, and multi-product industries.
Key Operational/Notified SEZs in Odisha:
- IDCO InfoCity SEZ (IT/ITES), Bhubaneswar:
- Type: Sector-specific (IT/ITES).
- Location: Chandaka Industrial Estate, Bhubaneswar.
- Developer: Industrial Infrastructure Development Corporation of Odisha (IDCO).
- Significance: A hub for IT and IT-enabled services companies. Often referred to as Infocity-I or Knowledge Park. There’s also an Infocity-II project being developed.
- Jindal Stainless Ltd. (JSL) SEZ, Kalinga Nagar:
- Type: Sector-specific (Stainless Steel and ancillary downstream industries).
- Location: Kalinga Nagar Industrial Complex, Jajpur district.
- Significance: Focuses on value addition in the metals sector, leveraging Odisha’s mineral resources.
- Vedanta Alumina SEZ, Jharsuguda:
- Type: Sector-specific (Aluminum and Aluminum Downstream).
- Location: Jharsuguda.
- Significance: Crucial for the state’s large aluminum industry.
- Tata Steel SEZ / Gopalpur Industrial Park (SEZ), Ganjam:
- Type: Multi-Product SEZ.
- Location: Gopalpur, Ganjam district.
- Significance: Part of Tata Steel’s integrated industrial park, focusing on various manufacturing activities, including ferro-alloys and other downstream industries. This is a significant industrial hub.
- Lanco Solar SEZ, Cuttack (Ramdaspur):
- Type: Sector-specific (Solar).
- Location: Ramdaspur, Cuttack.
- Significance: Aimed at boosting renewable energy manufacturing.
- HINDALCO SEZ, Rengali (Sambalpur):
- Type: Sector-specific (Aluminum and ancillary).
- Location: Rengali, Sambalpur.
- POSCO SEZ, Paradip (Jagatsinghpur):
- Type: Multi-Product (originally planned for steel).
- Location: Paradip, Jagatsinghpur.
- Note: This project has seen significant changes and delays. While initially envisioned as a major steel SEZ, its status and full operationalization should be cross-checked with the latest official sources. It’s important to know its historical significance in Odisha’s industrial landscape.
Other Potential/Proposed SEZs (Stay updated with current news):
- There might be other smaller IT/ITES SEZs approved for specific companies in Bhubaneswar and other cities.
- The State Government also has a Policy for Special Economic Zones, 2015, which outlines the incentives and procedures for setting up SEZs in Odisha, and identifies thrust sectors like Biotechnology, Electronic System Design and Manufacturing, Automobiles, etc.
5. Challenges and Concerns (General SEZ Context)
| Location | SEZ |
| Cuttack | Chaudwar (LANCO Solar Park), JINDAL Steel |
| Ganjam | Gopalpur (Multi Product Park), Chhatarpur (minerals) |
| Bhubaneswar | IT/ITES, Infocity, IDCO Knowledge Park |
| Jajpur | Kalinga Nagar |
| Jagatsinghpur | Paradip (POSCO) |
| Sambalpur | Rengali (HINDALCO) |
| Jharsuguda | Vedanta Alumina Zone |
Kalinga Nagar Special Economic Zone:
- Located in Kalinga Nagar Industrial complex in Jajpur district.
- Developed on 656 acres of land and focuses on metal industries.
- Major units include Jindal Stainless Steel Works, Jindal Stainless Ltd, Essar Steel etc.
Paradeep Special Economic Zone:
- Located near Paradeep Port in Jagatsinghpur district.
- Developed on 635 acres of land with emphasis on core industries.
- Major units include Paradeep Phosphates Limited, Steel Authority of India Ltd (SAIL) etc.
Infosys Technology Park:
- Located in Bhubaneswar, capital of Odisha.
- Focuses on IT/ITeS industries and developed on 20 acres of land.
- Major tenants include Infosys, Wipro, TCS, Tech Mahindra etc.
JSW Industrial Park:
- Located in Jagatpur, Cuttack district on 250 acres of land.
- Caters to steel and allied industries and its units.
- Major tenants include JSW Steel Ltd, Jindal Stainless Ltd etc.
Special Economic Zones In odisha objective Questions
Where is the Kalinga Nagar Special Economic Zone (SEZ) located?
A) Bhubaneswar
B) Paradeep
C) Jajpur district
D) Cuttack district
Answer: C) Jajpur district
What is the primary focus of the Kalinga Nagar SEZ?
A) IT/ITeS industries
B) Metal industries
C) Core industries
D) Organic farming
Answer: B) Metal industries
Which major companies are located in the Kalinga Nagar SEZ?
A) Infosys, Wipro, TCS
B) Paradeep Phosphates Limited, SAIL
C) Jindal Stainless Steel Works, Essar Steel
D) JSW Steel Ltd, Jindal Stainless Ltd
Answer: C) Jindal Stainless Steel Works, Jindal Stainless Ltd, Essar Steel
Where is the Paradeep Special Economic Zone (SEZ) situated?
A) Bhubaneswar
B) Paradeep Port
C) Cuttack district
D) Rayagada
Answer: B) Paradeep Port
What is the main focus of the Paradeep SEZ?
A) IT/ITeS industries
B) Metal industries
C) Core industries
D) Pharmaceutical industries
Answer: C) Core industries
Which major organizations operate within the Paradeep SEZ?
A) Infosys, Wipro, TCS
B) Paradeep Phosphates Limited, SAIL
C) Jindal Stainless Steel Works, Essar Steel
D) JSW Steel Ltd, Jindal Stainless Ltd
Answer: B) Paradeep Phosphates Limited, Steel Authority of India Ltd (SAIL)
Where is the Infospace Technology Park located?
A) Paradeep
B) Cuttack district
C) Bhubaneswar
D) Rayagada
Answer: C) Bhubaneswar
What industry sector does the Infospace Technology Park primarily cater to?
A) Agriculture
B) Manufacturing
C) IT/ITeS
D) Textiles
Answer: C) IT/ITeS
Which major IT companies have a presence in the Infospace Technology Park?
A) JSW Steel Ltd, Jindal Stainless Ltd
B) Infosys, Wipro, TCS, Tech Mahindra
C) Paradeep Phosphates Limited, SAIL
D) Essar Steel
Answer: B) Infosys, Wipro, TCS, Tech Mahindra
Where is the JSW Industrial Park located?
A) Paradeep
B) Bhubaneswar
C) Jajpur district
D) Cuttack district
Answer: C) Jajpur district
What type of industries does the JSW Industrial Park primarily cater to?
A) IT/ITeS
B) Metal and allied industries
C) Core industries
D) Organic farming
Answer: B) Metal and allied industries
Which major companies are situated in the JSW Industrial Park?
A) Infosys, Wipro, TCS
B) Paradeep Phosphates Limited, SAIL
C) JSW Steel Ltd, Jindal Stainless Ltd
D) Essar Steel
Answer: C) JSW Steel Ltd, Jindal Stainless Ltd
In which cities are the Four Organic Parks located in Odisha?
A) Rayagada, Cuttack, Puri, Paradeep
B) Bhubaneswar, Cuttack, Balangir, Rayagada
C) Jagatsinghpur, Jajpur, Khurda, Kendrapara
D) Paradeep, Rourkela, Sambalpur, Berhampur
Answer: B) Bhubaneswar, Cuttack, Balangir, Rayagada