The government has constituted a group headed by Bharat Forge Chairman Baba Kalyani to evaluate policy on the country’s special economic zones (SEZs) and suggest measures to help exporters in the current economic scenario.
The group will also ensure that the policy is World Trade Organisation (WTO) compatible, make comparative analysis of the SEZ scheme and dovetail the policy with other similar schemes, the commerce ministry said in a release today.
An SEZ is an area with economic regulations different from other areas of the same country and are generally export hubs. Such regulations are conducive for foreign direct investment and as SEZs are much easier to do business in. Companies operating in SEZs receive tax benefits and an opportunity to pay lower tariffs.
The group comprises top government officials and corporates including Ravindra Sannareddy, MD, Sricity SEZ; Neel Raheja, Group President, K. Raheja Group; Arun Misra, MD, Tata Steel SEZ. It has to submit its recommendation within three months.
The SEZ Policy was first implemented from April 1, 2000. Subsequently the Special Economic Zones Act, 2005 was passed by Parliament in 2005 and the Special Economic Zone Act was enacted. The SEZ Act, 2005, supported by SEZ rules, came into effect on February 10, 2006.
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