Commerce department to revive SEZs
The Special Economic Zones (SEZ) had lost their sheen in the last few years as the policy makers were not providing ample facilities to the industries functioning in these places. The commerce department has strongly pitched for allowing the units in the tax free SEZ enclaves to sell a part of their production in the local market and the extension of benefits under the Focus Products and Focus Market export promotion schemes.
The commerce department is trying to put pressure on the finance ministry to scrap minimum alternate and dividend distribution taxes for SEZ units. The three measures cited above ranked high on the commerce department’s agenda for reviving the programme and SEZs need to be restored and more SEZs should be built to improve the GDP of the nation.
More than 60% of the total land notified as SEZs is vacant years after the scheme was launched in 2006. And, of 389 SEZs, only 185 are functional. Since being functional is defined as at least one working export unit, the majority of the zones do not have full occupancy. So even in these 185 functional SEZs the occupancy is very less. It is believed that this move will blow a new lease of life in the ailing units in SEZs.
Source- The Economic Times
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