Panel Set Up to Recommend Reforms to SEZ Policy

13 Mar 2026 CW Team

Its terms of reference require an assessment of the SEZ Act of 2005 to judge its effectiveness in the current global trade and investment environment and to identify policy distortions. The committee will evaluate the impact of recent and proposed reforms, including measures related to Domestic Tariff Area (DTA) sales, fiscal and non-fiscal incentives, compliance requirements and operational flexibilities. The mandate also covers whether harmonisation with other schemes can reduce policy fragmentation.

The panel will examine the effectiveness of SEZs in attracting domestic and foreign investment and in promoting manufacturing, services, technology upgradation, value addition and employment for micro, small and medium enterprises. It will identify operational, procedural and regulatory challenges faced by developers and units, including customs, taxation, compliance burden, infrastructure and coordination among stakeholders. Recommendations are expected to focus on reducing compliance costs and improving operational flexibility.

The SEZ Act saw a halt in new approvals after certain tax advantages were withdrawn and efforts to replace the law have been intermittent since 2022 when the Development of Enterprises and Service Hubs Bill was proposed. After consultations the Bill was set aside in favour of smaller amendments and no replacement has been placed before Parliament. The finance minister relaxed rules in the current budget to permit DTA sales to assist exporters facing 50 per cent reciprocal tariffs from the United States, but the relaxation remains to be notified and recent trade developments have altered the policy context.

The government has set up a 17-member committee to overhaul the Special Economic Zone (SEZ) framework and to prepare a roadmap for reforms. The panel includes representatives of the Department of Commerce, the Department for Promotion of Industry and Internal Trade, Niti Aayog and the Central Board of Indirect Taxes and Customs. It will study harmonisation of export promotion schemes with SEZs, including export oriented units, Manufacturing and Other Operations in Warehouse, Advance Authorisation, Export Promotion Capital Goods and Duty Free Import Authorisation. Its terms of reference require an assessment of the SEZ Act of 2005 to judge its effectiveness in the current global trade and investment environment and to identify policy distortions. The committee will evaluate the impact of recent and proposed reforms, including measures related to Domestic Tariff Area (DTA) sales, fiscal and non-fiscal incentives, compliance requirements and operational flexibilities. The mandate also covers whether harmonisation with other schemes can reduce policy fragmentation. The panel will examine the effectiveness of SEZs in attracting domestic and foreign investment and in promoting manufacturing, services, technology upgradation, value addition and employment for micro, small and medium enterprises. It will identify operational, procedural and regulatory challenges faced by developers and units, including customs, taxation, compliance burden, infrastructure and coordination among stakeholders. Recommendations are expected to focus on reducing compliance costs and improving operational flexibility. The SEZ Act saw a halt in new approvals after certain tax advantages were withdrawn and efforts to replace the law have been intermittent since 2022 when the Development of Enterprises and Service Hubs Bill was proposed. After consultations the Bill was set aside in favour of smaller amendments and no replacement has been placed before Parliament. The finance minister relaxed rules in the current budget to permit DTA sales to assist exporters facing 50 per cent reciprocal tariffs from the United States, but the relaxation remains to be notified and recent trade developments have altered the policy context.

Infrastructure Urban

23 Apr 2026

Centre Examines Duty Relief Under MOOWR For Battery Storage Imports

The finance ministry is examining whether to continue customs warehousing benefits under the Manufacture and Other Operations in Warehouse Regulations, 2019 framework for imported battery energy storage systems. It plans consultations with the ministries of power and new and renewable energy to decide on the future scope of duty and GST deferment for such imports. The review follows concerns from the renewable energy sector that the current approach is creating an uneven playing field. Under the regulations, companies may import goods without paying customs duty or goods and services tax upfro..

Infrastructure Urban

23 Apr 2026

Jamshedpur MP Seeks Rs 4,820 Million Plan For Tatanagar Platforms

Member of Parliament Bidyut Baran Mahato held a meeting with Vikas Jain, Executive Director (Public Grievances) of the Railway Board, following a special session of Parliament to press for accelerated rail infrastructure work around Jamshedpur and Tatanagar. The discussions addressed a range of projects that the ministry is prioritising for the area. Final Location Surveys for the construction of the fourth and fifth railway lines between Pandrasali and Kandra and for the development of a satellite station near Tatanagar have already been approved, clearing the way for detailed planning. Mahat..

Infrastructure Energy

23 Apr 2026

Final Batch Of Two 3,300 HP Locomotives Reach Mozambique

The final batch of two 3,300 horsepower (hp) locomotives manufactured by Banaras Locomotive Works (BLW) has reached Mozambique, marking completion of an export consignment. The locomotives arrived at Maputo harbour and were cleared for onward movement to the national rail operator. The shipment closes a programme that began with earlier consignments delivered over the past months. Banaras Locomotive Works, a production unit of Indian Railways, built the locomotives under a contract with the Mozambican rail authority and managed the final inspections and commissioning preparations prior to disp..