Govt amends SEZ rules to include value addition, tighter norms for renewal, work from home

Source: The Economic Times, Mar 10, 2019

NEW DELHI: The government has amended the rules governing special economic zones (SEZ) to include value addition earning norms along with the existing positive net foreign exchange earning requirement to setup a unit, and prescribed criteria while renewing its validity.

As per the updated rules, the “prescribed value addition earning requirement” will apply in the proposal to setup a unit in an SEZ, besides the positive net foreign exchange earning requirement.

The government also said that in case an application is submitted after a period of two months, “reasonableness of the delay shall be examined on the merits and circumstances of the case”. Read the rest of this entry »

RIL leased 4,000 acre land from Navi Mumbai SEZ for economic hub

Source: The Economic Times, Mar 07, 2019

Reliance Industries Thursday said it has leased 4,000 acres of land from Navi Mumbai SEZ (NMSEZ) for an initial payment of Rs 2,180 crore to develop a global economic hub. NMSEZ, as part of a tender process was allotted this land in 2006 to develop a world class SEZ.

NMSEZ, which is promoted by Reliance Industries Chairman Mukesh Ambani, Jai Corp India, SKIL Infrastructure Ltd and City and Industrial Development Corp (CIDCO), was supposed to open to industrial units in 2019.

“RIL through a wholly owned subsidiary has entered into an MoU with NMSEZ to sub-lease land of about 4000 acres along with the associated development rights by making an initial payment of Rs 2,180 crore subject to fulfilment of certain conditions,” the company said in a regulatory filing. Read the rest of this entry »

Cabinet approves promulgation of Ordinance allowing trusts to setup units in SEZs

Source: The Economic Times, Feb 28, 2019

NEW DELHI: The Union Cabinet on Thursday approved the promulgation of an ordinance that will allow trusts to setup units in special economic zones (SEZ).

“This will facilitate investments in SEZs,” the government said in a statement.

The ordinance seeks to amend the definition of a person under the SEZ Act 2005 which will enable a trust to be considered for grant of permission to setup a unit in these units. The current provisions do not allow trusts to do so.

“The amendment would also provide flexibility to the central government to include ‘trusts’ in the definition of a ‘person’, any entity that the central government may notify from time to time,” the government said.

Exports from SEZs grew about 15% to Rs 5.52 lakh crore in 2017-18 as compared to the previous fiscal.

JNPT SEZ to bid out 300 acres to manufacturing companies

Source: The Hindu Business Line, Feb 24, 2019

Mumbai: The Special Economic Zone (SEZ) inside the JNPT port is planning to bid out a fresh land parcels measuring 300 acres exclusively for manufacturing companies. The bid process is likely to be completed by March, a senior JNPT official said.

World’s largest contract electronics manufacturer, Foxconn Technology Group of Taiwan, has shown interest in bidding for the land. Read the rest of this entry »

Govt to revamp SEZ incentives policy, focus on employment over exports

Source: Business Standard, Dec 03, 2018

Mumbai: The Union commerce and finance ministries are considering revamping Special Economic Zones (SEZs).

The idea is to focus on service sector export and incentivise manufacturing, with stress being shifted from export to employment. A report on this was given early last week by a committee headed by Baba Kalyani, chairman of Bharat Forge.

Its major recommendations include temoval of sunset clauses for services SEZs (including international financial centres) and for job-based incentives to address issues that might not stand with Wolrd Trade Organization (WTO) rules.

A government official said: “The suggestions are very constructive and the commerce ministry will immediately begin formal consultations with the finance and other ministries, so that implementation of the committee’s recommendations could be done without delay.” Read the rest of this entry »

SEZ rules eased for merger of units, minimum area requirement

Source: The Economic Times, Oct 02, 2018

New Delhi: The government has amended the rules governing special economic zones (SEZ) to align them with the goods and services tax (GST).

The new rules permit merger of units in the same zone and do away with the minimum area requirement to set up biotechnology and health SEZs.

SEZ units can now export prohibited goods as long as the goods used for manufacture are imported.

The new rules have also simplified the procedure for claiming drawbacks. Instead of the earlier requirement of submitting the ARE-1 or application for removal of excisable goods for export by air, sea, post, land form to claim refund, exporters now need to submit only the bill of export. Read the rest of this entry »

13 SEZ developers, units seek more time to implement projects

download (1).jpgSource: The Economic Times, Sept 10, 2018

As many as 13 SEZ developers and units including G P Realtors, JBF Petrochemicals and Aurobindo Pharma have sought more time from the commerce ministry to implement their projects.

Decision on these proposals would be taken by the Board of Approval (BoA) for Special Economic Zones (SEZs) in its meeting on September 12. BoA is headed by the commerce secretary. G P Realtors has sought more time for its electronic hardware and IT/ITES SEZ at Gurugram.

Read the rest of this entry »