Policy

1,096 SEZ units register, 336 exit in last three years, says Goyal

Our Bureau New Delhi | Updated on July 23, 2021

No provision to grant additional fiscal incentives to SEZs at present

As many as 1,096 SEZ units were registered during the last three years in various SEZs across the country, while 336 units exited during the period.

“The reason of such winding of operations includes variations in international market conditions, slowdown of orders, merger of units and Covid-19 pandemic,” Commerce & Industry Minister Piyush Goyal said in a written reply in the Rajya Sabha on Friday.

There is no provision to grant additional fiscal incentives at present to SEZs, the Minister clarified, stating that fiscal concessions and duty benefits allowed to SEZs are inbuilt into the SEZ Act, 2005.

Sunset clause

With the sunset clause on income tax exemptions for SEZ units becoming effective last year, the zones have been asking the government for new incentives to retain their attractiveness for investors.

Goyal said that SEZs set up under SEZ law had largely met their objectives in terms of performance in exports, investment and employment. Exports valued at ₹22,840 crore in 2005-06 had increased to ₹7,59,524 crore in 2020-21; investment of ₹4,035.51 crore in 2005-06 had increased to ₹6,17,499 crore (cumulative basis) by 2020-21 while employment provided to 1,34,704 persons in 2005-06 had increased to 23,58,136 persons (cumulative basis) in 2020-21, he said.

Published on July 23, 2021

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