NEW DELHI : The Rajya Sabha on Thursday cleared the Special Economic Zones (Amendment) Bill, paving the way for trusts to set up units in such areas. The Bill was cleared by the Lok Sabha on Wednesday.

The Bill will replace the SEZ (Amendment) Ordinance, 2019, that was promulgated in March. It is now set to become a law after receiving the President’s nod.

SEZs are special demarcated areas in the country that have different regulations to attract foreign direct investment (FDI). Such areas are considered outside the customs territory. They are entitled to various tax incentives to boost manufacturing, promote exports as well as generate employment.

“The present provisions of the SEZs Act, 2005, do not permit ‘trusts’ to set up units in SEZs. The amendment will enable trusts to be considered for grant of permission to set up units in SEZs. The amendments will also provide flexibility to the central government to include in this definition of a person or any entity that the central government may notify from time to time. This will facilitate investments in SEZs," the government had earlier said in a statement.

According to the law, an individual, a Hindu divided family, a company, co-operative society or a firm fall in the definition of a “person".

Replying to the debate on the Bill, commerce minister Piyush Goyal said that a small amendment that has large impact on investment, jobs and growth and until now the government has received eight proposals from such trusts.

The total investment proposed by these trusts comes out to be ₹8,000 crore," Goyal said, adding that the government expects about $3 billion, which is around ₹20,000 crore investments, annually. “At the end of March 2019, the investment in SEZs was a whopping ₹5 lakh crore plus and the employment was over 20 lakh and exports were over ₹7 lakh crore," Goyal said.

PTI contributed to the story.

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