All concerns of SEZs addressed in Budget: Commerce Min

Commerce and Industry Minister Anand Sharma said on Friday the Budget 2010-11 has addressed all the concerns of the SEZ units regarding continuation of sops.

"There was speculations and concerns which have been settled in the new Budget that support and incentives SEZs continue without any dilution," Sharma told reporters.

SEZ unit holders and developers had raised concerns regarding continuation of tax benefits like income tax holiday after the Direct Tax Code comes in effect, replacing the exiting Income Tax Act.

In his Budget speech in Lok Sabha, Finance Minister Pranab Mukherjee said the government is committed to ensure continued growth of SEZs to draw investments and boost exports and employment.

When asked that the Budget was silent on the continuation of sops to the export oriented units (EOUs), Sharma said: "If there are any issues we will asses and if they are legitimate concerns which may have serious impact we can always take it up with the Finance Minister."

EOUs are demanding extension of tax sops beyond March 31, 2010. EOU scheme enables an entrepreneur to set up a unit anywhere in the country.

On the country's exports, which have turned positive after 13 months since November 2009, Sharma said the shipments would further consolidate in the last quarter of the fiscal.

He also criticised the Opposition's walkout during the Budget saying, "the walkout led by the leader of Opposition has set a very unhealthy and sad precedent."