Cabinet approves promulgation of Ordinance to amend SEZ Act

• Amendment enables a trust to be considered for grant of permission to set up a unit in SEZs

Highlights about the promulgation of Ordinance to amend SEZ Act

• The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved promulgation of an Ordinance to amend the definition of “person”, as defined in sub-section (v) of section 2 of the Special Economic Zones Act, 2005 (28 of2005) to include a trust.

• It has to enable the setting up of a unit in a Special Economic Zone by a trust, as also to provide flexibility to the Central Government to include in this definition of a person, any entity that the Central Government may notify from time to time.

• The present provision of the SEZs Act, 2005 do not permit ‘trusts’ to set up units in SEZs.

• The amendment will enable a trust to be considered for grant of permission to set up a unit in SEZs.

• The amendment will also provide flexibility to the Central Government to include in this definition of a person, any entity that the Central Government may notify from time to time. This will facilitate investments in Special Economic Zones.

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Mains Paper 3: Indian Economy| Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

Prelims level: SEZ Policy (2005)

Mains level: Reconsidering the SEZ Policy in India

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