DESH Bill likely to be reworked after finance ministry raises concern

The Bill, which will replace the SEZ law, is facing hurdles due to lack of consensus between the commerce and finance ministries

The Centre may have to revamp the Development of Enterprises and Services Hub (DESH) Bill since the finance ministry has raised concerns on some of the fiscal incentives proposed under it.

The DESH Bill will replace the existing special economic zone (SEZ) law.

At stakeholder consultations with the Department of Commerce, the finance ministry had expressed reservations about allowing greater flexibility for the integration of development hubs with the domestic market without major obligation or focus on exports, said people in the know.

Unlike current SEZs, the development hubs — revamped SEZs — will not be export-oriented under the new Bill.

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