The commerce ministry has initiated inter-ministerial consultation to amend the SEZ Act. This is intended to revive the special economic zones and create a flexible framework for the sale of products manufactured in these zones in the domestic market. 

This amendment bill will be introduced in place of the proposed Development of Enterprise and Service Hubs (DESH) bill. The bill aims to help revive SEZs and facilitate business transactions between SEZ and domestic tariff area (DTA). It proposes to allow sales from SEZ to DTA on duty foregone basis, resulting in partial de-notification of zones, easier notification norms, and streamlining of approval for SEZs units. 

To seek the views of different ministries on these measures, the commerce ministry has circulated a note on a draft SEZ Amendment Bill, 2023. The bill is likely to be introduced in the forthcoming winter session of Parliament which will commence on 4 December, 2023.

Recently, Minister of Commerce and Industry, Piyush Goyal said the government is looking at easing certain restrictions for units in SEZs to promote the sector’s growth.

At present, units in SEZs are allowed to sell their products in DTA on payment of duties on an output basis (finished goods).