Question

Briefly explain the weaknesses of the RSA's Industrial Development Zones?

Answer 1

• Revenue losses because of the various tax exemptions and incentives.
• Many traders are interested in SEZ, so that they can acquire at cheap rates and create a land bank for themselves.
• The number of units applying for setting up EOU's is not commensurate to the number of applications for setting up SEZ's leading to a belief that this project may not match up to expectations.