Package for export zones in the offing

In a bid to provide a fillip to India's exports, the government will announce a package for special export zones and export oriented units in the Exim Policy next month, Commerce and Industry Minister Kamal Nath has said.

Addressing an open house on SEZs and EOUs in the Capital on Saturday, Nath said, "The government is considering a proposal for the enactment of the SEZ Act to provide stability of regime and single-window clearance to SEZs. Since it may take some time, we will like to extend some of the benefits indicated in the proposed Act in the Exim policy."

The minister also said he would request Finance Minister P Chidambaram to consider extending the income-tax package contained in the proposed SEZ Act to SEZ units in the next Budget.

Nath also assured that both Exim Policy and Budget would include measures to mitigate discrimination faced by EOUs, particularly those relating to central sales tax and income-tax.

"I will take up the matter with the finance minister regarding extending the benefit of income-tax under Section 10-B beyond 2010. I will also push for extending income-tax benefits to domestic units converted into EOUs without any conditions," Nath said.

Speaking on the occasion, Sharad Jaipuria, chairman of the Export Promotion Council for EOUs and SEZs said both EOUs and SEZs constituted 15 per cent share of the country's overall exports. The two together earned foreign exchange worth $9.19 billion during 2003-04.