Partial denotification of SEZs, single window clearance mechanism in DESH draft

New Delhi: The draft regulation to revamp the Particular Financial Zones (SEZ) into Improvement of Enterprise and Service Hubs (DESH) has met the companies trade’s lengthy standing demand to permit partial denotification to release the world not in demand.

It has additionally proposed to arrange an built-in single window clearance mechanism for the grant of time-bound approvals for the institution and operation of those hubs, together with the one utility types and returns.

Allowing partial notification of IT and companies SEZs, it stated that “the constructed up space in a companies hub shall not be required to be contiguous”.

“This could be large aid to the IT SEZs as that they had been looking for partial denotification for lengthy,” stated an official.

The commerce and trade ministry has begun the method to ease the method of denotifying empty areas of above 100 million sq ft built-up space, price ₹30,000 crore within the 250-plus SEZs within the nation in order that the areas that haven’t any extra demand can be utilized for industrial or different functions.


Additional, to enhance ease of doing enterprise, the draft DESH invoice additionally gives for institution and upkeep of an internet portal inside six months from the date of graduation of the Act.

“The net portal shall function the one window clearance mechanism for the grant of time-bound approvals for the institution and operation of Improvement Hubs, together with the one utility types and returns,” it stated.

These proposals are a part of the overhaul of India’s SEZs into DESH which can be allowed to promote within the home market, and likewise contract manufacture for these exterior these zones. At current, sub-contracting is allowed with annual permission and sure situations equivalent to the worth of the sub-contracted manufacturing of a unit in any monetary 12 months to not exceed the worth of products produced by the unit inside its personal premises within the rapid earlier fiscal.

Whereas the draft regulation permits for disputes to be resolved via mediation, it additionally states that arbitration to be the route “the place the business dispute couldn’t be settled or has been settled solely partly by mediation”. It additionally suggests the state boards to even have personal sector participation with one consultant nominated by the developer involved.

“Firm illustration on the board isn’t fascinating as it may possibly result in confusion. We have now advised the federal government to stay to the idea of Improvement Commissioner solely,” stated an trade consultant.

SEZ exports fell to $102.3 billion in FY21 from $112.3 billion in FY20.

A relook on the SEZ Act got here after the federal government final 12 months adopted a sundown clause, suggesting that solely these items that began manufacturing on or earlier than June 30, 2020, can be granted a phased income-tax vacation for 15 years.
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