Government sets up 17-member committee for larger reforms in SEZ policy

New Delhi: The government has set up a 17-member committee to suggest larger reforms in the policy for special economic zones (SEZs), an official said.

It will submit a concept paper recommending a roadmap for broad-based and comprehensive reforms to formulate a SEZ 2.0 policy.

It will undertake a background study focused on the harmonisation of various prevalent export promotion schemes, including SEZs, export-oriented units (EoUs), MOOWR (Manufacturing and Other Operations in Warehouse), Advance Authorisation, EPCG (export promotion for capital goods), and Duty Free Import Authorisation (DFIA).


The committee's composition includes representatives from commerce, customs, Niti Aayog, DPIIT, and CBIC.

The terms of reference include examining the existing Special Economic Zones (SEZ) Act, 2005, with a view to assessing their effectiveness in the current global trade, investment environment and macro-economic landscape and harmonisation with other export promotion schemes so that policy distortion, if any, may be addressed.

It will evaluate the impact of recent and proposed reforms in SEZ policy, including measures relating to Domestic Tariff Area (DTA) sales, fiscal and non-fiscal incentives,compliance requirements, and operational flexibilities, on exports,investment ,employment and ease of doing business.

It will also assess the effectiveness of SEZs in attracting domestic and foreign investment, promoting manufacturing generation, services, technology up-gradation, value addition, and employment, including for MSMEs.

The terms of reference also include identifying operational, procedural, and regulatory challenges faced by SEZ developers and units, including issues relating to customs, taxation, compliance burden, infrastructure, and coordination among stakeholders.