Govt looks to set up group for changes in SEZ policy

The government will constitute a group to suggest necessary changes in the policy for special economic zones (SEZs), Parliament was informed on Monday.

SEZs are export hubs and contribute significantly to the country's total outbound shipments. "The government is in the process of constituting a group to study necessary changes in the SEZ policy," Commerce and Industry Minister Suresh Prabhu said in a written reply to the Lok Sabha.

The developers and units of these zones enjoy certain fiscal and non-fiscal incentives such as there is no licence required for import; full freedom for subcontracting; and no routine examination by customs authorities of export/import cargo. They also enjoy direct and indirect tax benefits.

In a separate reply, the minister said that to address concerns of rubber sector, the government has decided to constitute a task force on the commodity for finding out short term solutions and formulating long term strategies to tackle the problems.

He said the effort will be to work towards a rubber policy in consultation with state governments.

Minister of State for Commerce and Industry C R Chaudhary said as much as 23,779 hectares of land, around 52 per cent of the area marked for the development of special economic zones, is lying vacant.