Partial notification of SEZs, single window clearance mechanism in the country’s draft


New Delhi: Draft law to amend special economic zone ,SEZ) The development of Enterprise and Service Hubs (DESH) has given a long-standing demand of the service industry to allow partial denotification to free up the sector that is not in demand.

This It is also proposed to set up an integrated single window clearance mechanism for providing time bound approval including a single application form and return for setting up and operating these centres.

Allowing partial notification of IT and service SEZs, it said that “the built up area in a service center will not need to be adjacent”.

“It will be a huge relief for IT SEZs as they have been demanding partial de-notification for a long time,” said an official.

ministry of commerce and industry has started the process of easing the process of delineating vacant spaces of over 100 million sq ft of built up area worth Rs 30,000 crore in over 250 SEZs in the country so that areas that are not in high demand can be used for industrial purposes. can be done for. or other purpose.


Further, to promote ease of doing business, the draft Country Bill also provides for the establishment and maintenance of an online portal within six months from the date of commencement of the Act.

“The online portal will act as a single window clearance mechanism for providing time bound approval for setting up and operating the development centers including a single application form and return.”

These offers are part of an overhaul in India’s SEZ’s DESH, which could be allowed to sell in the domestic market, and also contract manufacturing for those outside these regions. At present, sub-contracting is allowed with annual permission and certain conditions such as the value of sub-contracted output of an entity in any financial year not exceeding the value of goods produced by the entity within its own premises in the immediate past . fiscal.

While the draft law allows disputes to be resolved through arbitration, it also states that arbitration is a route where “a commercial dispute cannot be settled or can only be partly settled by arbitration”. “. It also suggests private sector partnerships with a representative nominated by the developer concerned to the state boards.

An industry representative said, “The representation of the company on the board is not desirable as it may lead to confusion. We have suggested the government to stick to the concept of development commissioner only.”

SEZ exports fell to $102.3 billion in FY11 from $112.3 billion in FY10.

A rethink on the SEZ Act came after the government adopted a sunset clause last year, which suggested that only those units which started production on or before June 30, 2020, be given a phased income tax holiday for 15 years. will be given.


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