labels: economy - general
Commerce ministry moots export obligation to make SEZ unitsnews
23 January 2007

New Delhi: In a bid to make a favourable decision on SEZs more palatable, commerce minister Kamal Nath today mooted export obligations on units in special economic zones and said there was a need for further clarity on the issue to address concerns these units might not sell abroad.

Nath said, Section 5 of the SEZ Act had already provided for it export obligations and . only a clarification was needed. Section 5 of the SEZ Act stipulates that the government would be guided by the idea of "promotion of exports of goods and services" while approving these zones.

At present, units in SEZs have to earn more foreign exchange than they spend on importing goods and services from abroad. Apart from this condition, they are not subject to any minimum value addition norms or export obligations.

Nath''s statement comes a day after the finance ministry proposed at the meeting of empowered group of ministers to make it mandatory for units to export up to 50 per cent of their production.


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Commerce ministry moots export obligation to make SEZ units