Page 2 - Sezs

SEZ rules amendments to benefit commercial office leasing: Report

The recent changes in the SEZ rules will benefit commercial office leasing and allow flexibility in demarcating parts of the SEZ area without significant cost implications, according to a report. The department of commerce on December 6 notified amendments to the Special Economic Zones (SEZ) rules of 2005. The amendments permit demarcation of parts of an SEZ area into non-SEZ area after repayment of tax benefits availed to date. Such demarcated areas are expected to have better occupancy, in line with the existing non-SEZ spaces, Crisil Ratings said in a note on Friday. Hence, benefits from better leasing and higher income from such parts will outweigh associated costs, the report said. The SEZ Act was introduced in 2005 to drive exports by providing tax exemptions for companies operating in such areas. While the sunset clause on these benefits kicked in from April 2020, higher compliance requirements continued. Also, prior to the amendments, SEZ operators could de-notify only th

Govt considering several measures to help revive special economic zones

The government is considering several measures such as a flexible framework for sale of products manufactured in special economic zones (SEZs) in the domestic market, easy de-notification norms, and streamlining approval processes for units, an official said. The aim is to help revive SEZs and facilitate business transactions between SEZ and domestic tariff area (DTA) or the domestic market. SEZs are enclosures which are treated as foreign territories for trade and customs duties, with restrictions on duty-free sales outside these zones in the domestic market. To seek views of different ministries on these measures, the commerce ministry has circulated a note on a draft SEZ (special economic zone) amendment bill 2023. The inter-ministerial consultation is going at a fast pace and the bill is likely to be introduced in the forthcoming Winter session of Parliament which will commence on December 4 and continue till December 22. This amendment bill will be introduced in place of the .

Looking at liberalising some restrictions on SEZ units, says Piyush Goyal

Commerce and Industry Minister Piyush Goyal on Wednesday said the government is looking at easing certain restrictions for units in the special economic zones (SEZ) to promote the sector's growth. SEZs in India are treated as foreign territories for trade and customs duties, with restrictions on duty-free domestic sales. "We are looking at ways and means to liberalise some of these restrictions on SEZ units. It's under consideration...We are discussing it with all the stakeholders and hopefully that itself will give a significant boost to the SEZ units," Goyal said here at an industry chamber function. Regarding the industry's demand to extend benefits of the Remission of Duties or Taxes on Export Products (RoDTEP) Scheme to SEZs, he said the ministry will go about it "cautiously". "At some point in time we will consider it once we are very confident that it will not lead to WTO non-compliance," he added. In these zones, the largest areas of exports are petroleum products and ...

DESH Bill explained: What it is and why the government may junk it

Discussions are taking place on whether the DESH bill will be passed or the SEZ Act will be amended, officials said

Govt could discard proposed DESH Bill, amend SEZ Act: Details here

The Ministry of Commerce and Industry is eager to permit units in these zones to sell in areas outside SEZs, called domestic tariff areas (DTA) without the payment of customs duties

Govt aims to make India competitive in hydrogen production: R K Singh

The government will take all the measures to make India competitive in producing green hydrogen, Union Minister R K Singh said. The minister for power, new and renewable energy made the remarks during a meeting with the green hydrogen developers on October 19, an official statement said on Friday. "With our single unified grid and large renewable capacity, India can produce the cheapest green hydrogen in the world. We will do everything in our power to make India competitive in producing green hydrogen and to achieve the targets set out in the National Green Hydrogen Mission (NGHM)," the minister was quoted as saying in the MNRE statement. The meeting aimed to understand the issues faced by the developers and how the government can help overcome these issues like SEZ policies, regulatory provisions for enabling dual connectivity, certain contractual conditions, and demand charges being levied by states among others. A presentation at the meeting showed that for producing 1 million

Saudi Arabia plans sovereign wealth fund office in Gujarat's GIFT City

India and Saudi Arabia signs 53 MoUs worth $3.5 bn

MOOWR scheme made less attractive

Most manufacturers were reluctant to opt for the MOOWR scheme instead of well-established EOU/SEZ/EPCG schemes. Now, even some MOOWR units may opt out of the scheme and go for the competing schemes

DESH Bill deadlock likely to force Cabinet secretary to step in

The department of commerce finalised the new proposed SEZ law and sought inter-ministerial comments in June last year, with an aim to table it in the Monsoon Session of Parliament

DESH Bill may let companies have obligation of choice: Govt official

This may ensure no single mandatory export commitment

Centre allows 100% WFH for IT units in SEZs till December 31, 2023

The new rule states that a unit will have to only maintain the lists of employees who are allowed to follow WFH or from any place outside SEZs

FinMin rejects provision for tax benefits to SEZs under DESH Bill

Says proposed incentives would "create havoc" for units outside the zones

Goyal holds consultations with SEZ stakeholders on work from home facility

The commerce ministry on Friday held discussions with stakeholders of Special Economic Zones (SEZs) on the issue of work from home facility. The consultations assume significance as the ministry is considering to allow 100 per cent Work From Home (WFH) for employees of units in SEZs. In a tweet, the office of Commerce and Industry Minister Piyush Goyal said, he "held consultations with SEZ stakeholders over Work from Home facility. With the hybrid model here to stay, the government is working to provide flexibility and create jobs in small cities to boost exports and fuel growth". At present, WFH is permitted for a maximum period of one year in a SEZ unit and can be extended to 50 per cent of the total employees. Meanwhile, Goyal also held a meeting with Taiwan's Deputy Minister of Economic Affairs Chern-Chyi Chen. "Discussed enhanced cooperation in several areas of mutual interest and explored ways to further boost bilateral trade and investments between India and Taiwan," a sepa

Finance ministry rejects 15% benign corporate tax in DESH Bill

Although the commerce ministry is making efforts to finalise the DESH Bill and introduce it in the parliament during the winter session, the finance ministry's stance may delay it

DESH Bill likely to be reworked after finance ministry raises concern

The Bill, which will replace the SEZ law, is facing hurdles due to lack of consensus between the commerce and finance ministries

Centre garners Rs 3,000 crore from windfall tax on oil and gas firms

It is likely to continue with the levy till the Indian basket of crude is above $80 a barrel

Commerce department recast to bring more focus on trade policy making

The DGFT has been already working on the much-delayed foreign trade policy, which is now expected to be released by the end of September

TMS Ep224: UPI-credit card link, monkeypox, auto firms' results, DESH Bill

Will UPI on credit cards take off? Should India be worried about monkeypox? Will easing chip shortage perk up auto firms' Q1 commentary? What is the DESH Bill? All answers here

What is the DESH Bill?

The govt is likely to introduce the Development of Enterprise and Service Hubs (DESH) Bill in the upcoming monsoon session of Parliament. How will it overhaul the ecosystem of special economic zones?

New SEZ law to focus on job creation and research, not foreign exchange

The Bill shall propose the re-introduction of certain direct tax benefits, under which units set up in these development hubs shall attract a 15 per cent corporate tax until 2032