The Kandla Special Economic Zone or KASEZ is located at the Gulf of Kutch, which is in the western coast of Gujarat.

It is 9 kilometers from the Kandla Port.It is the first ever Export Processing Zone built inAsiaand with 142 operational units across 1000 acres is presently regarded as the biggest operating multi-product SEZ in the country. LOGISTICS World class links Located9 kms from kandla port the port with minimum THC Just 55 kms from mundra container terminal operated by Pand o Connected to Mumbai and new delhi by rail road Infrastructure LAND AND BUILDING The only functional 1000 acres sez Fully developed industrial plots in all sizes on 15 years renewable lease@ Rs13/ per sq. mtr. Per annum Ready to occupy Industrial sheds of various types available for the SEZ units on FCFS basis on 15 year renewable lease terms @ Rs.250/sqm to Rs. 420/sqm per annum rentals Eonomical Operations In house round the clock Customs Clearance at no extra cost Five commercial banks with foreign exchange facilities within the zone complex SBI Overseas Banking Unit Gujrat Specific Fiscal incentives Exemption from Purchase Tax Exemption from Sales tax Exemption from Motor Spirit Tax Exemption from Luxury Tax Exemption from Entertainment Tax etc on sales and transactions Exemption from Stamp Duty Exemption from registration fees payable on transfer of land and loan agreements,credit deeds and mortgages executed by the units Other facilities Private warehousefor additional storage capacities Postal and telegraph services International and domestic couriers Shipping agents,cargo handlers,transporters available in the kandla complex

Kandla SEZ Benefits for Exporters There are several reasons why an investor can come to Kandla the SEZ is blessed with a properly developed infrastructural sector as well as a convenient location. The labor scenario over here is a pretty good one too, with an abundant supply of workers and professionals. Industrial benefits Water and power shortage is often regarded as a major hindrance to any sort of business venture but exporters operating from KASEZ need not worry on that front as proper availability of water and power is guaranteed. In addition, they can count on getting 24X7 support in administrative matters. Administrative benefits Asides from these, exporters can count on being provided the facilities and advantages. To start with they need not have any license needed for imports and they are allowed to re-export defective and loaned imported goods without paying the GR waiver. This can be done if prior information is provided to the Development Commissioner. Tax benefits The units functioning in KASEZ are exempted from customs duties this facility is applicable for importing capital goods, consumables, raw materials, and spares. According to the RBI circular of February 9, 2002 they are able to write off the unrealized export bills and also enjoy freedom from paying central excise duties for procuring capital goods, consumables, raw materials, and spares from Indian markets. The central sales taxes paid for buying goods inIndiaare reimbursed, which makes it easier for the units operating in the SEZ to maintain the financial stability necessary to achieve success. These units are also provided with complete exemption from income taxes for the first 5 years and then a reduction of 50 percent for the next 2 years. This facility is provided as per the Income Tax Acts Section 10-A. Oil prices have been shooting up around the world and it is also an essential ingredient in any form of business operation. It is here that the companies operating in the Kandla SEZ have a distinct advantage as repayment is provided to them in case of taxes paid on furnace oil that has been purchased from Indian oil companies. The benefit is provided according to the drawback rate that has been specified by the Directorate General of Foreign Trade Foreign investment benefits In case of items reserved with the SSI, these companies enjoy a zero cap on foreign investment. The goods exported by them are also exempted from industrial licensing procedures and to top it all these companies can repatriate their profits for free without the need to balance dividends. Industrial and business benefits The wastage related regulations applicable for the companies operating at KASEZ are pretty flexible. They also have total freedom to outsource production in and outside India, which means that they can get the best resources for a particular product or service and also provide their consumers the very best. Profitability is an important part of any business after all no company wishes to see a loss at any point in time but the present situation is really tough for companies in the export sector. The global economy, especially in EU countries like Greece which is looking for continuous bailout from any country willing to help and companies are not exactly eager to import products! However, the companies working at the KASEZ can be sure that they will be able to start earning substantial foreign exchange by the third year of operation. These companies also have permission to work for domestic exporters, which provides them an extra avenue for generating sufficient business capital.

Corporate governance is pretty crucial for the success as well as avoiding any possible slip-ups. At Kandla this is more or less guaranteed with a monitoring committee comprising Customs and led by Development Commissioner having been set up to keep a watch on the units performance. The process of operation has also been made smoother for these entities with exemption from regular examination of the cargo imported and exported by the Customs officers. These companies are also allowed complete and automatic FDI. Post office clearing agents, banking facilities and other support services are also available in the zone complex, which makes it convenient for the companies to carry out their financial transactions without much hassle at all. Asides from these, these companies also have the permission to keep total foreign exchange earnings in the EEFC accounts. Companies willing to set up shop in Kandla will be happy to know that the SEZ offers many ready to use spaces and developed plots. With facilities such as permission to repatriate and realize proceeds from exports within a 12 month period and the freedom from excise and customs duties on goods that are used for establishing units, doing business over here should be a great prospect! The highlights of the infrastructure and incentives of the Kandla SEZ are

The SEZ unit at Kandla is treated as foreign territory for the purpose of trade operations and duties and tariffs For import activities no licence is required and import of capital goods, spares, consumables, and raw materials is exempt from customs duty 100% Foreign Direct Investment is permitted in the manufacturing sector and for the development of infrastructure Subcontracting abroad is permitted The import and export cargo items are free from all routine examination by Customs The Kandla SEZ provides support services like banking, post office clearing agents, restaurants, and dispensary within the zone complex. State Bank of India, Bank of Baroda, Punjab National Bank, and Dena Bank all have their branches in the Kandla Special Economic Zone (KASEZ).

Kandla SEZ is also that many banks have opened their branches in the SEZ. These include Bank of Baroda, State Bank of India, Dena Bank, and Punjab National Bank. Further Advantage Kandla SEZ is that land is available at very low price at around ` 13 per sq. mtr. Many companies have set up their units in the Kandla SEZ after coming to know of its many advantages. The companies that have units in Kandla SEZ are:

Neelam Metal Industries Kandla Polyplast Pvt. Ltd. Hindustan Celluloids & Plastics Ltd.

Maruti Exports Om Siddhi Vinayak Impex Palmon Exports

Advantage Kandla SEZ as seen are many and it is for this reason that many companies have set up their units in the SEZ. So in order to further encourage the Kandla SEZ, the state government must take more efforts so that Advantage Kandla SEZ is sustained on a long-term basis.

As on date there are 186 functional units in KASEZ comprising units from engineering sector, chemical and allied products, garments sector, plastics sector, and trading units etc. The expanded area of nearly 300 acres is now almost saturated and the major units coming up in the area are in the engineering sector and an all time high exports is expected during the current year. The exports for the financial year 2010-11 were Rs. 2672.29 crore. KASEZ has achieved continuous growth and has adopted its operations to the challenges of increased volumes of trade over the years. During the current financial year upto February 2012 the exports figure has already crossed Rs. 2712.91 crore mark and a record breaking figure of 3000 crore is expected to be achieved by the end of this financial year.