Govt amends SEZ rules to include value addition, tighter norms for renewal, work from home

NEW DELHI: The government has amended the rules governing special economic zones (SEZ) to include value addition earning norms along with the existing positive net foreign exchange earning requirement to setup a unit, and prescribed criteria while renewing its validity.

As per the updated rules, the “prescribed value addition earning requirement” will apply in the proposal to setup a unit in an SEZ, besides the positive net foreign exchange earning requirement.

The government also said that in case an application is submitted after a period of two months, “reasonableness of the delay shall be examined on the merits and circumstances of the case”.


The new norms come after the Union Cabinet approved the promulgation of an ordinance that will allow trusts to setup units in these zones.

Further, the export performance, employment generated and any instance of violation norms by the unit would be considered when its letter of approval is to be renewed.

For the purpose of work from home, the SEZ unit will have to provide laptop or desktop and secured connectivity such as virtual private network and virtual desktop infrastructure to establish a connection between the employee and work related to the project.

As per the new norms, the SEZ unit also has to ensure that the work from home employee is not involved in the export of services from outside the unit.