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Tamilnadu Association of SEZ Infrastructure Developers (TASID) seeks reforms for SEZ sector

Pushes for the integration of SEZ Online with Customs ICEGATE system ~Incentivize Foreign Supply Chains to relocate into SEZs

COVID-19 has resulted in extreme disruption to the economic and social life. Given the situation, Tamilnadu Association of SEZ Infrastructure Developers (TASID) in a letter addressed to the Prime Minister’s office has appealed for immediate reforms in the SEZ sector to mitigate the impact of COVID-19 crisis.

In the letter, Mr. Sunil Rallan, Founder and President, TASID has emphasized on how social distancing and safety measures will become the new normal post-COVID. He highlighted the importance of moving all consent processes at various stages ‘online’ from submission until approval. It will expedite the entire process and bring in ‘Ease of Doing Business’ in the sector. 


He further added, the need to incentivize Foreign Supply Chains to relocate into SEZs with easy access to DTA as well the ability to export efficiently. With effective policy intervention in the SEZ sector, Special Economic Zones can be used to attract Manufacturing Supply Chains relocating from China to India.


The letter further details few proposed changes under the following rules:

  1. Case for recalibration of the SEZ Rule on Net Foreign Exchange Earning
  2. Reversal of Custom Duties – “Duty foregone Principle “
  3. Manufacturing Services and SEIS support

The Ministry of Commerce and Industry data shows that 241 out of 373 SEZs in India are operational and provide employment to around 20 lakh people. Tamil Nadu tops the chart with operational SEZs and 75% of SEZs are functioning in the state.