Recalibrating SEZs in DESH Bill: Net foreign exchange criterion may return

Revised proposal for Cabinet on DESH Bill has now been circulated

The commerce department is set to make changes in some of the earlier proposals under the Development of Enterprises and Services Hubs (DESH) Bill, which have been major stumbling blocks in the passage of the new legislation overhauling the existing special economic zones (SEZs).

The new legislation might reintroduce the ‘positive net foreign exchange (NFE)’ criterion, a primary requirement for SEZ units, and remove the proposal of a ‘freezing concessional corporation tax rate until 2032’, people aware of the matter told Business Standard.

This move assumes significance as it will put an end to the long-drawn-out differences with the revenue department, paving