Commerce Ministry to meet stakeholders to reassess SEZ policy: Commerce Secretary Rita Teaotia

CHENNAI: The Union Commerce Ministry will hold a stakeholders consultation this month to "reassess" the SEZ policy amid several special economic zone developers surrendering projects or seeking more time.

Commerce Secretary Rita Teaotia said that the ministry would hold a meeting with the concerned parties including state governments on special economic zone(SEZ) next week.

"A meeting has been scheduled on tenth of this month with stakeholders to reassess the SEZ policy to see what needs to be done depending upon current requirements," she said here.

SEZs, which emerged as a major export hub in the country, started loosing sheen after imposition of minimum alternate tax (MAT) and dividend distribution tax ( DDT).

Industry has sought a reduction or removal of these taxes to boost investments.

Exports from these zones increased from Rs 22,840 crore in 2005-06 to Rs 4.94 lakh crore in 2013-14.

Increase in exports from these zones would help the country in enhancing overseas shipments. The Commerce Ministry is struggling to increase exports as the country's shipments in the last four fiscals have been hovering around $300 billion.

During a recent meeting of the Board of Approval, an inter-ministerial group on SEZs, it cancelled as many as 22 zones and given more time to 27 developers to implement their projects.

The projects were cancelled as no satisfactory progress were made to execute them.