With the open house meet of export oriented units (EOUs) and special economic zones (SEZs) resulting in majority of queries revolving around benefits arising out of sale in domestic tariff area (DTA), the Ministry of Commerce (MOC) ruled out units availing such benefits.
"Majority of units who participated in the open house meet enquired about availing benefits like IT exemption through sale in the DTA. But we have ruled out any such possibilities. Though the government is open to units selling in the domestic tariff area, it will defeat the purpose of an SEZ if such benefits are provided," said Anil Mukim, joint secretary, Ministry of Commerce and Industry, Government of India.
Organised by Kandla Special Economic Zone (KASEZ), the open house meet sought to resolve issues of EOUs and SEZ units in the state of Gujarat.
"The units have been demanding IT exemption and other benefits through sale to DTA. Moreover, they have also sought benefits similar to duty drawback availed by units exporting from DTA. While the former cannot be provided, the government is open to helping SEZ and EOU units in the latter," said LB Singhal, director general, Export Promotion Council for EOUs and SEZs (EPCES).
According to Singhal, SEZ achieved a growth of 121 per cent over previous year as exports from SEZs during the year 2009-10 were to tune of Rs 2,20,711 crore. "In four years since enactment of SEZ Act, investments have increased from Rs 2,793 crore to Rs 1,66,000 crore, while employment rose from 134,704 persons to 503,611 persons," he said.
"EOUs and SEZs are vital instruments of country's export scenario and are complementary to each other. These schemes are playing a very important role in employment generation, exports, attracting investments and creation of infrastructure," added Singhal.