SEZ Eligibility May Now Depend On New Jobs, R&D And Not Forex

The government may tweak eligibility criteria for Special Economic Zone units to link them to investments in R&D, innovation and employment generation rather than foreign exchange earnings, as it seeks to revamp the SEZ policy and align it with global trade norms. The commerce department has proposed to replace the positive net foreign exchange (NFE), a primary requirement for SEZ units, with the new eligibility criteria in the wake of the extant SEZ policy being challenged in the World Trade Organisation (WTO), and a panel led by industrialist Baba Kalyani suggesting a revamp of the policy, officials aware of the development said.

“The commerce department has held initial discussions with the revenue department and further deliberations are on to finalise the new eligibility criteria for SEZs,” one of them told ET. Criteria being deliberated upon are export focus, investment in R&D, advanced technology, innovation and employment generation.

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Organisation (WTO), and a panel led by industrialist Baba Kalyani suggesting a revamp of the policy, officials aware of the development said.
“The commerce department has held initial discussions with the revenue department and further deliberations are on to finalise the new eligibility criteria for SEZs,” one of them told ET. Criteria being deliberated upon are export focus, investment in R&D, advanced technology, innovation and employment generation.

Source: Economic Times

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