| This move is part of a strategy to make SEZs global trading hubs on the lines of the free trade areas in West Asia. |
| Officials told Business Standard the commerce ministry was finalising a Cabinet note, which would be put up when a new government was in place. |
| They added that the proposal had already received a green signal from the nodal agencies "" the urban development ministry and the department of industrial policy and promotion. |
| They said apart from allowing 100 per cent FDI in trading, the draft SEZ Bill also provided for sale at concesisonal tariffs to units in the domestic tariff area that were net exporters. |
| "The two measures would assist in making India a global trading base, mainly in wholesale trading, on the lines of the free trade areas in the United Arab Emirates," an official said. |
| The officials indicated that the government was looking at the proposed SEZ in Mundra, promoted by the Adani group, as one of the designated areas for trading. A demand to allow 100 per cent FDI in trading was made by domestic industry as well as international players. |
| Officials said the move would benefit exporters across the country since the trading concerns in SEZs would source their products from units in the domestic tariff area. |
| They said the proposal to allow 100 per cent FDI in real estate development in SEZs was also demanded by developers of these designated areas since there was a huge demand for real estate developers. Some realty developers are also picking up equity in companies set up in the zones. |
| Officials, however, said the combined customs rules for SEZs might be delayed till the general elections are over in the wake of the Election Commission's model code of conduct. The rules were earlier expected to be notified on May 1. |
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