NEW DELHI: The commerce ministry will soon begin consultations with the Union finance ministry and others on implementing the suggestions made by a committee formed to examine ways to revamp special economic zones (SEZs), according to Union Minister Suresh Prabhu. The Bharat Forge Chairman Baba Kalyani-led committee, constituted by the ministry to study existing SEZ policy, submitted its report to the commerce and industry minister.
“The suggestions of the committee are very constructive and the Commerce Ministry will immediately begin formal consultations with the finance ministry and other ministries so that implementation of the committee’s recommendations may be done without any delay,” Prabhu said.
The objectives of the committee were to evaluate existing SEZ policy and make it compatible with the World Trade Organisation (WTO) norms. It was also mandated with suggesting measures for maximizing utilisation of vacant land in these zones. The committee has now suggested that the success seen by services sectors like IT and ITeS has to be promoted in other sectors such as healthcare, financial services, legal, and design services.
Measures recommended to take these goals forward include continuation of tax incentives, migration of SEZs to employment and economic enclaves, and creation of link infrastructure and maintenance for enclaves. According to the draft recommendations, incentives should be linked with employment, investment, technology/innovation, and infrastructure status for these zones to improve access to financing.