Millennium Post

‘Govt will notify SEZ reforms soon’

The government on Tuesday said that it will soon notify the Special Economic Zones reforms which seek to ease land requirement norms and provide for an exit policy.

'I think in a couple of weeks time rules will come out,' Commerce Secretary S R Rao told reporters on the sidelines of an Assocham function here. In the supplementary Foreign Trade Policy (FTP), the government had announced these reforms.
Once a major attraction for investors, SEZs lost sheen following imposition of MAT (Minimum Alternate Tax) and DDT (Dividend Distribution Tax), including certain provisions in the proposed direct tax regime (DTC), besides the global slowdown.
The government had taken note of the fact that there are acute difficulties in aggregating large tracts of uncultivable land lying vacant, to set up SEZ.

For multiproduct SEZ, minimum land requirement has been brought down from 1,000 hectares to 500 hectares and for sector-specific SEZs, it has been brought down to 50 hectares.Also, there would be no minimum land requirement for setting up ITITES SEZs, besides easing of minimum built up area criteria. PTI
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