Tamil Nadu Association of SEZ Infrastructure Developers (TASID) in a letter addressed to the Prime Minister’s office has appealed for immediate reforms in the SEZ sector to mitigate the impact of COVID-19 crisis.
In the letter, Sunil Rallan, Founder and President, TASID has emphasized the importance of moving all consent processes at various stages ‘online’ from submission until approval. It is expected to expedite the entire process and bring in ‘Ease of doing Business’ in the sector.
He further emphasized the need to incentivize Foreign Supply Chains to relocate into SEZs with easy access to DTA as well the ability to export efficiently. With effective policy intervention in the SEZ sector, Special Economic Zones can be used to attract Manufacturing Supply Chains relocating from China to India.
The letter further details few proposed changes which includes recalibration of the SEZ Rule on Net Foreign Exchange Earning, Reversal of Custom Duties on the basis of “Duty foregone Principle ” and Manufacturing Services and SEIS support.
The Ministry of Commerce and Industry data shows that 241 out of 373 SEZs in India are operational and provide employment to around 20 lakh people. Tamil Nadu tops the chart with operational SEZs and 75% of SEZs are functioning in the state.