Government likely to table SEZ bill in monsoon session of Parliament
The proposed bill is likely to replace the existing SEZ Act with the new law, which will enable the economic zones to become export hubs, as well as development hubs.
Published: 15th July 2022 07:24 AM | Last Updated: 15th July 2022 07:24 AM | A+A A-
NEW DELHI: The government is likely to table the much-awaited Bill to reform Special Economic Zones (SEZs) in the upcoming monsoon session of parliament, sources close to the development told The New Indian Express. The monsoon session of parliament begins on July 18.
The proposed bill is likely to replace the existing SEZ Act with the new law, which will enable SEZs to become export hubs, as well as development hubs. Sources say the new legislation would no longer focus only on facilitating exports of goods and services but strive to make SEZs hubs of economic activities. “The idea is to move from islands of exports to catalysts of economic and employment growth. Operational relaxations are envisaged (under the proposed legislation to ensure optimal utilisation of available space, infrastructure and manpower,” says Anita Rastogi, partner, PwC.
She adds that the proposed legislation seeks to replace the present export and net foreign exchange (NFE)-a based framework with a new eligibility criterion in terms of additional economic activity including exports, investment in research & development (R&D), advanced technology, innovation, promotion of priority sectors, employment generation and skilling.
An exporter, on the condition of anonymity, says with India signing new trade pacts with the UAE, the UK and Australia, the country needs to bolster its export hubs to take advantage of these trade pacts. He, therefore, says the government must bring the legislation as soon as possible.
Finance minister Nirmala Sitharaman in her budget speech in February has made an announcement in this regard. She had said in her speech that the new legislation “will cover all large existing and new industrial enclaves to optimally utilise the available infrastructure and enhance the competitiveness of exports”.
New SEZ bill aims to boost exports
The proposed bill is likely to replace the existing SEZ Act with the new law, which will enable SEZs to become export hubs, as well as development hubs.