SEZ Policy review committee suggests a liberal SEZ policy
12 December 2018
The review of the policy on Special Economic Zones submitted by a group of eminent persons constituted by the government has suggested a shift in the policy framework from export growth to broad-based employment and economic growth.
- Procedural relaxations for developers and tenants to improve operational and exit issues;
- Extension of sunset clause and retaining tax or duty benefits;
- Broad-banding definition of services/allowing multiple services to come together;
- Additional enablers and procedural relaxations;
- Unified regulator for IFSC;
- Utilising multi services SEZ IFSC for all the inbound and out bound investment of the country;
- Incentives for availing services from IFSC SEZ by domestic institutions;
- Extension of benefit under services export incentives scheme;
- Allowing alternate sectors to invest in sector specific SEZs/ 3Es;
- Flexibility of long term lease for developers and tenants; and
- Facility of sub-contracting for customers outside 3Es/SEZs without any restriction or cap at any level.
- Specified domestic supplies supporting ‘Make in India’ to be considered in NFE computation;
- No export duty on goods supplied to developers and used in manufacture of goods exported;
- Flexibility in usage of NPA by developers and sale space to investors/ units;
- Infrastructure status to improve access to finance and enable long term borrowing;
- Promote MSME participation in 3Es and enable manufacturing enabling service players to locate in 3E; and
- Dispute resolution through arbitration and commercial courts.