The Hindu Business Line : Govt to tighten SEZ rules

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New Delhi Jan. 20 The Government proposes to tighten Special Economic Zones (SEZ) rules to make developers of such zones submit all documentation within six months of the formal approval from the Board of Approvals (BOA).

This move is intended to expedite the development of SEZs in the country, as the process of notification of such zones would be completed in a time-bound manner and not left open-ended.

The effort is to ensure that the benefit of SEZ development goes to the units at the earliest.

Currently, no timeline has been specified for developers, who have got formal approvals, to get their zones notified by the Central Government.

In case the six-month time schedule is not adhered to, the Government would even cancel the approvals, Special Secretary in the Commerce Ministry, Mr G.K. Pillai, said.

Addressing a gathering of SEZ developers and other stakeholders, at a meet organised by the Export Promotion Council of EOUs and SEZs (EPCES), Mr Pillai said there were about 70-80 cases where over six months had passed from the date of formal approval and the developers had not, so far, got their zones notified.

He pointed out that the BOA had, at its first two meetings (May and June last year), given formal approval to over 80 proposals.

Till date, only about 62 SEZs have been notified.

In all, formal approvals have been given for more than 230 SEZs.

The Commerce Secretary later told reporters that "almost all the points raised by the political parties" including issues of land acquisition and capping the number of SEZs would be referred to the empowered group of ministers (e-GoM), which is to meet on January 22.

He, however, indicated that the changes, if any, would only be prospective and for fresh cases.

The EPCES Director-General, Mr L.B. Singhal, told Business Line that there should be no sectoral caps and it should be left to the market forces.

The e-GoM had, in its last meeting, decided that the issue of caps would be reviewed in six months time or 75 SEZs getting operationalised, whichever was earlier. The six-month period gets completed on January 22.

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