SEZs to be new engines of growth

While expressing great hope for attracting FDI and increasing India’s export through this scheme, he said “SEZs are required to provide a trouble free congenial and investment friendly environment where both Indian and foreign units can manufacture their products at internationally competitive prices for exports or sale to domestic tariff area (DTA).”

Thus, in an effort to make these SEZs internationally competitive, the government has announced various initiatives including sale from DTA to SEZs to be treated as export and domestic suppliers wiould now be eligible to entitlements like drawback and duty entitlement passbook (DEPB) scheme benefits, service tax and central sales tax (CST) exemption.

With a view to integrate production and processing and help promote SEZs specialising in agro exports, the policy has allowed agriculture and horticulture processing SEZ units to provide inputs and equipment to contract farmers in DTA. This would promote production of goods as per the requirement of importing countries, the policy says. The policy has also exempted domestic sales by SEZ units from special additional duty while allowing foreign bound passengers taking goods from SEZs to promote tradeand exports.

Government, in the policy has also allowed SEZ units to take jobwork abroad and export goods from there. The duty-free import of goods required for operation and maintenance of SEZ units has also been allowed. Export and import of all products through post, parcel and courier by SEZ units, which was earlier not permissible, would now be allowed, Jaitley said. To enable exporters access funds at international rates, he said his ministry is in consultation with RBI and finance ministry for suitable fiscal package for offshore banking units set up in SEZs. The policy has recognised the need to upgrade physical nfrastructure of such clusters by providing back up support of common facilities.