29 sept 2001

govt permits 100 per cent fdi in eous
new delhi: the government has allowed 100 per cent foreign direct investment in 100 per cent export oriented units engaged in manufacturing activity.
the government has amended the handbook of procedures to give effect to this. units in the special economic zones (sezs) have also been allowed to sell, in the domestic tariff area (dta), by-products and services in addition to goods on the basis of self-declaration.
moreover, the sez units can remove moulds, jigs, tools, fixtures etc to the premises of sub-contractors and bring them back to the bonded premises of the sez units after completing the job work within the specified period. the development commissioners of the sezs have been given powers to issue green cards after securing a legal undertaking to this effect from them.

the sezs have been made eligible for a ten-year tax holiday for setting up the zones and also for a similar dispensation in respect of their income. the sezs are primarily conceived as magnets to attract foreign direct investment with a view to boosting exports.

28 sept 2001