Budget 2022: Expect new SEZ legislation in 4-6 months, says Piyush Goyal

Gati Shakti is an enabler and not an added impediment for infrastructure projects in the country, Union Commerce and Industry Minister Piyush Goyal said. He also said the proposed new Special Economic Zones legislation will also see use of readymade infrastructure available with SEZs. Edited excerpts from his interaction with media:

The new SEZ legislation will enable more participation from states? What would greater participation mean?

The SEZ Act is being made more inclusive, involving states. Basically (it) is to convert SEZs -- rather than focus only on exports -- to having a focus on industrial development and service sector development. So we are going to gradually make SEZs into plug-and-play infra, which can be used for both exports and domestic industry. Those are the changes that we are bringing to the law, which we will do in four to six months.

We will have to put in place some equalisation levy so that DTA (domestic tariff area) units are not at a disadvantage compared to SEZ units who have taken certain advantages in the past. We will create a level playing field. Use the robust infrastructure, the very good connectivity, the plug-and-play facility that is available in SEZs to expand their ambit and use the large infrastructure and land and readymade sheds and readymade buildings that are available to expand.

How prepared are states to participate in the Gati Shakti initiative? What is the kind of support we can expect from them?

Gati Shakti is a transformative initiative. For the first time, India is planning its infrastructure story very systematically through PM Gati Shakti. It has taken various available infrastructures and created maps. We now have 360 layers in PM Gati Shakti prepared by BISAG from Ahmedabad. And they all talk to each other. PM Gati Shakti is an enabler to support all infrastructure planning, make it more robust, ensure there are no bottlenecks, no hindrances, and faster execution. For instance, if there is a mountain range, it will tell you where it is appropriate to build a tunnel that is the shortest that will ultimately speed up the project. It will be an enabler and will be a game changer in planner.

We are getting huge support from states and they have understood the importance and the benefits they can also get using Gati Shakti. At a later stage, we will open it up for the private sector as well.

What about the national logistics policy? How is it different from PM Gati Shakti as it also aims to reduce logistics cost?

Logistics policy has got nothing to do with PM Gati Shakti. In fact, the policy will also benefit from the scheme because our planning of logistics in the future will become much more outcome-oriented.

We have seen rationalisation in Customs duty of certain items. What is the thought process behind selecting these products?

In terms of Customs changes, we are using technology in a much bigger way so that Customs can be seamless, there can be less deterrence, and faster movement of import and export cargo. Second, the products that you are asking about are largely related to the capital goods sector. Our idea is we should support the domestic capital goods sector. Wherever India has abilities to supply any capital goods, we are looking at more and more indigenisation. That is a part of Atmanirbhar Bharat, wherever high technology capital goods are required, reduce import duty to an average of 7.5 per cent, which will not increase the project cost too much but will provide incentive to domestic manufacturers.

We see supply-side measures in the Budget but what about the demand-side measures?

The whole Budget is about demand-side stimulation. When we spend a huge amount on capex –– Centre and states together -- there is a huge multiplier effect. All of this leads to demand for steel, cement, electrical, machinery for roadways. It is an endless demand stimulus, jobs will be created, MSMEs will see demand push. All of this will result in private sectors investing in new capacities to meet the demand that will be generated

By when can we expect e-commerce policy and consumer protection rules on e-commerce?

On e-commerce nothing is on the table. We are talking to the gems and jewellery sector. They have been asking for certain support to expand their e-commerce activity. That is at an advanced stage of discussion. We will come out with details later. Other than that, the e-commerce sector is working on its own steam and there is nothing that has been demanded in the budget or that is holding back their growth and progress.