Comm, fin min put heads together to revive SEZs

CNBC-TV18’s Rituparna Bhuyan reports that the commerce ministry is now in the final phases of talks with the finance ministry on a new set of rules for SEZs, which are expected to bring back investor confidence into the zones

Reporter's Diary at 06:00 pm

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In the past two years, not a single special economic zone has become operational and exports from these tax-free industrial enclaves have crashed, thanks to imposition of MAT and an uncertain global economic environment.

The commerce ministry is now in the final phases of talks with the finance ministry on a new set of rules for SEZs, which are expected to bring back investor confidence into the zones, reports CNBC-TV18's Rituparna Bhuyan.

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If all goes well, then the new set of rules could be announced next week itself after commerce minister Anand Sharma returns from his visit to Brazil. The proposals from the commerce ministry for special treatment for IT SEZs includes doing away with the minimum area norms for IT SEZs and mandate minimum built-up area norms for these zones.

For Class-A cities, the minimum built-up area of 1 lakh sqmts has been proposed, for Class B the proposal mandates 50,000 sqmts and for Class-C cities the proposal is for 25,000 sqmts. Another proposal is to promote IT SEZs in small towns.

As far as other SEZs are concerned, additional incentives will be offered for development of social infrastructure in rural and semi-urban areas.

In addition, a host of other measures have been proposed such as an easier exit policy, easier moving and relocation of SEZ units. So it remains to be seen if the commerce and the finance ministry come at a consensus on the proposed SEZ rules.