Question: The Special Economic Zones (Amendment) Bill permits which of the following to set up units in special economic zones?
(b) Group of companies
(d) None of these
- The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved to introduce the Special Economic Zones (Amendment) Bill, 2019.
- This Bill will replace the Special Economic Zones (Amendment) Ordinance, 2019 (12 of 2019).
- The Bill will be introduced in ensuing session of the Parliament.
- After the amendment of sub-section (v) of section 2 of the Special Economic Zones Act, 2005, a trust or any entity notified by the Central Government will be eligible to be considered for grant of permission to set up a unit in Special Economic Zones.
- The present provisions of the Act do not permit ‘trusts’ to set up units in SEZs. ‘Person’ defined in the Act who is allowed to seek permission for setting up units does not include ‘trusts’.
- SEZs are major export hubs in the country as the government provides several incentives and single-window clearance system.
- The developers and units of these zones enjoy certain fiscal and non-fiscal incentives such as no license requirement for import; full freedom for subcontracting; and no routine examination by customs authorities of export/import cargo. They also enjoy direct and indirect tax benefits.