Rs. 83,000 crore revenue lost on SEZs in 6 years.

More than 50% of land allotted to special economic zones (SEZs) across the country remains idle, and its very purpose was defeated with no significant increase in employment even as the government's revenue foregone was to the tune of Rs. 83,000 crore between 2007 and 2013, the comptroller and auditor general (CAG) has found.

Exposing systemic weaknesses in tax administration, a performance audit on SEZs by the CAG revealed that ineligible tax deductions were extended to companies, some of which diverted land allotted to them to other uses. There was overall decline in manufacturing in these zones, said the CAG report, likely to be tabled in the winter session of Parliament.

'Tax concessions to SEZs for the period 2007 to 2013 works out to Rs. 83,104 crore on account of direct taxes and customs,' sources said, adding that this revenue foregone did not include loss to the exchequer on account of central excise and service tax that could have accrued if these companies were brought out of the SEZs. The audit also found that more than 50% of the land allotted remained idle even though the approvals dated back to 2006.

TOI