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Request for inputs: Recommendations for making SEZ more attractive in India
Request for inputs: Recommendations for making SEZ more attractive in India

May 27, 2021

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As you are aware, the SEZ policy has been under the scanner of the Ministry of Commerce. In January 2021, the Ministry met to discuss how some of the remaining recommendations of the Baba Kalyani Committee could be implemented. In fact, in the press release issued after the meeting, the Committee acknowledged that the scheme was a success for the IT/ ITeS sector and that it should be replicated in other sectors as well.

Given that the sunset clause for availing income tax benefits for setting up of units in SEZs has expired on March 31, 2020, we are now in the process of suggesting changes required in the SEZ regulations, to ensure that SEZ remains attractive for the IT-BPM industry.  We plan to highlight issues like removal of condition of earning foreign exchange for services rendered to DTA units; easing de-notification process while ensuring that depreciation benefits are provided in respect of all assets, flexibility of utilization of Non-Processing Area by developers for creation of social infrastructure by removing existing usage restrictions,  etc.

The idea is to approach the Government with policy level changes that will help boost and provide the right impetus for companies to continue to operate in SEZs. In addition, we also wish to highlight operational and procedural challenges being faced by the industry and provide suggestions towards ease of doing business. We are therefore writing to seek your inputs in this regard.

We shall be grateful if you could send your inputs latest by Jun 15, 2021 to deepak@nasscom.in and tejasvi@nasscom.in


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Tejasvi

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