SEZ Amendment Bill 2019 Allowing Trusts To Open Industrial Units In Special Economic Zones Passed By The Parliament

The Rajya Sabha has cleared the Special Economic Zones (Amendment) Bill 2019, after it was first passed by the Lok Sabha.

The Special Economic Zones (Amendment) Bill 2019 is set to replace the Special Economic Zones (Amendment) Ordinance, 2019, which was promulgated in March. The Bill is now set to become a law after it receives the President’s nod shortly.

The Special Economic Zones (Amendment) Bill 2019 would replace the Special Economic Zone (Amendment) Ordinance 2019 promulgated last March, which had allowed trusts to seek establishment of units across Special Economic Zones (SEZs).

The Bill was drafted by amending the definition of “person” under Section 2(v) of the SEZ Act 2005 to also include 'trusts'.

Besides trusts, any entity which the central government may notify from time to time has also been included in the definition of “person” as per the ordinance.

As per Section 3(2) of the Act, the proposal for establishment of SEZ can be made by any "person".

At the moment, the definition of “person” includes an individual, whether resident in India or outside India, a Hindu undivided family, co-operative society, a company, whether incorporated in India or outside India, a firm, proprietary concern, or an association of persons or body of individuals, whether incorporated or not, local authority and any agency, office or branch owned or controlled by such individual.

Special Economic Zones (SEZs) enjoy government incentives including tax benefits and single-window clearance system.

Developers as well as industrial units of these zones enjoy certain fiscal and non-fiscal incentives such as the ability to import without any license, complete freedom to subcontract work as well as no routine examination by customs authorities of export or import cargo.

Special Economic Zones also enjoy direct as well as indirect tax benefits.