| Senior government officials told Business Standard that the concept had been dropped after it was found to be "unworkable" and against the interests of the 25 SEZs, which had been approved across the country. |
| "We realise that the concept could discourage further progress of the SEZs, which have been approved since the concept entailed any area being demarcated as an SEZ. Why would units then shift to the approved SEZ areas? Therefore, we have decided to drop the concept," an official said. |
| The concept of 'virtual SEZs' had been floated for inclusion in the draft SEZ Bill and the ministry was to finalise an investment and export threshold limit for such zones. As per the concept, units will not have required physical presence in the SEZ to get the fiscal incentives. |
| Any company existing or new will have been able to avail the benefit available to an SEZ unit if it qualified for the investment and export turnover criteria. |
| Officials said the draft Bill along with the changes and recommendations of industry was in final stages of consideration and would be soon forwarded to the Cabinet for approval. |
| While several notifications have already been announced by the government, the SEZ Bill will seek to cover all issues pertaining to the establishment, development and the management of these zones. |
| Finance Minister P Chidambaram had in the Budget announced significant relief measures to the units in SEZs by exempting them from the payment of the central sales tax (CST) for setting up, operation and maintenance of such units. |
| The benefit of the exemption from the payment of the central sales tax had also been extended to developers of SEZs for the purpose of development, operation and maintenance of SEZs. |
| New measures |
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