Nath favours export obligation on SEZ units
Commerce Minister Kamal Nath on Tuesday favoured export obligation on units in Special Economic Zones and said there was a need for further clarity on the issue to address concerns these units might not sell abroad.
By PTI |
NEW DELHI: Commerce Minister Kamal Nath on Tuesday favoured export obligation on units in Special Economic Zones and said there was a need for further clarity on the issue to address concerns these units might not sell abroad.
"I am in favour of export obligation on the units in SEZs. Section 5 of the SEZ Act has already provided for it. Only clarification is needed," he said.
Section 5 of the SEZ Act says that the government will be guided by the idea of "promotion of exports of goods and services" while approving these zones.
"The SEZ Act provides that the SEZs are primarily for exports. There are concerns that some of the units in SEZs might not export and we need to clarify on that," Nath added.
At present, units in SEZs have to earn more foreign exchange than they spend on importing goods and services from abroad. Apart from this condition, they are not subject to any minimum value addition norms or export obligations.
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Nath's statement comes a day after the Finance Ministry proposed at the meeting of Empowered Group of Ministers to make it mandatory for units to export up to 50 per cent of their production.Download
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