OBUs OF INDIAN BANKS ARE EXEMPT FROM CRR & SLR AT NOIDA SEZ, SAYS ITS DEVELOPMENT COMMISSIONER

Development Commissioner, Noida SEZ, Dr. L B Singhal on Friday disclosed that this exporting zone has permitted operation of Overseas Banking Units (OBUs) of Indian banks that are exempted from the CRR and SLR prescription of the RBI so that liquidity is not a problem for exporters operating within this zone.

Addressing members of PHD Chamber of Commerce and Industry in association with Export Promotion council for EOUs and SEZs here today at an Interactive Session on SEZs, Dr. Singhal also disclosed that such OBUs are also exempt from income tax besides being free from Cash reserve ratio and statutory liquidity ratio prescription of the RBI.

The Noida Special Economic Zone has been encouraging Indian banks to set up their branches within its boundaries in the last couple of months and that many such banks have already been operation there, he pointed out.

Dr. Singhal refused to subscribe to the public view that SEZs have not been doing according to their potential, pointing out that even in circumstances of prevailing adverse external and internal factors, the overall exports from north India have scaled a growth of 26% and made more than significant contribution in creating direct employment as compared to SEZs located in other parts of the country in the fiscal 2015-16.

He also announced that very shortly, the SEZs in northern part of the country are likely to attract an investment of Rs.1000 crores from two leading industrial houses and claimed that SEZs built in this part are on par with the best built and operated upon in economies of scale.

According to him, the SEZs in the fiscal 2015-16 have been able to garner investment to the tune of 467,000 crores with employment potential, estimated more than 16 lakh people.

In his welcome remarks, President, PHD Chamber, Dr. Mahesh Gupta emphasized that the objectives of SEZs could be accomplished with facilities that can link SEZs operations with ports.  The FDIs in such SEZs will come provided sound infrastructure is built up in and around them, citing an example of Sanzan SEZs of China that catapulted its economy and exports, he stressed.

According to President PHD Chamber, “the need of the hour is to facilitate and boost SEZ model across the sectors and segments.  There are procedural bottlenecks; unavailability of vast land; lack of adequate infrastructure; rise in cost of operations; lack of skilled manpower and re-imposition of MAT and DDT”.

Among others who spoke on the occasion comprised Regional Chairman, EPCES, Mr. R M Manroa; Regional Vice Chairman & MD Replika Press Pvt. Ltd. Mr. Bhuvnesh Seth and Chief Economist and Direct Research, PHD Chamber, Dr. S P Sharma.