The Hindu Business Line : Delhi Chamber asks Govt not to recast SEZ group

Board nod
In a meeting of the Board of Approvals held earlier this month, around 150 proposals were cleared for setting up SEZs.
The SEZ Act was enacted in June last year and the SEZ Rules were announced in February this year.

New Delhi , April 2

The PHD Chamber of Commerce and Industry (PHDCCI) has urged the Government to reconsider its decision to reconstitute the Group of Ministers on special economic zones (SEZs). The reconstitution would affect the soon-to-be-announced foreign trade policy, according to the chamber.

The Group of Ministers on SEZs is being reconstituted to take a re-look at the requirement of minimum land area for some specific sectors, such as electronics hardware and software, biotechnology, non-conventional energy and gems and jewellery, according to the chamber. "The Act and the rules were finalised after intensive consultations within the Government and with stakeholders," said Mr Bibek Debroy, Secretary-General, PHDCCI.

Several proposals were received for setting up SEZs in various parts of the country and in a meeting of the Board of Approvals, held earlier this month, around 150 proposals were cleared for setting up SEZs.

Whereas only 10 hectares was originally specified as the minimum threshold, there is a likelihood that minimum land area will now be increased.

"Policy stability is critical to any Government's credibility," added Mr Debroy. "And this kind of flip-flop sends perverse signals to domestic and foreign investors alike." The SEZ Act was enacted in June last year and the SEZ Rules were announced in February this year. The Act was meant to boost exports and generate employment, through better infrastructure development, simplified procedures and single-window clearances for both SEZ developers and units that wished to set up their ventures in SEZs.

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