Goa SEZ issue referred to law ministry

The commerce ministry has asked the law ministry to give its views on the request by the Goa government to de-notify three special economic zones (SEZs) in the state.

"We have asked the law ministry for their views on the matter. Subsequently, the Board will take a final decision in a meeting in February," said Commerce Secretary G KPillai on the sidelines of the India-UK CEO roundtable.

According to Pillai, even if the SEZs were stripped of the notified status, the infrastructure that has been constructed will remain and will continue to function as an industrial unit.

The SEZ Act, 2005, does not have provisions for de-notifying a zone. "The issue is complex. The central government will need a special ordinance, which will give the Board of Approval the power to de-notify a zone," said Hitender Mehta, head of the Gurgaon office of legal firm, Vaish Associates.