Commerce Minister Piyush Goyal on Monday introduced a bill to allow trusts to set up units in Special Economic Zones (SEZs) in the Lok Sabha.
The Union Cabinet had recently approved introduction of the Special Economic Zones (Amendment) Bill, 2019 to replace an ordinance which was promulgated in March by the previous government.
The ordinance had paved the way for trusts to set up units in SEZs.
According to the bill, after its amendment of sub-section (v) of section 2 of the Special Economic Zones Act, 2005, a trust or any entity notified by the central government will be eligible to be considered for grant of permission to set up a unit in SEZs.
The amendment also seeks to provide flexibility to the central government to include trusts in the definition of a person in a bid to facilitate investments in these zones.
An applicant would have to approach the Board of Approval to set up a unit in these zones which are treated as foreign entities in terms of customs rules which is headed by the commerce secretary.
The present provisions of the Act do not permit trusts to set up units in SEZs and the person defined in the Act who is allowed to seek permission for setting up units does not include trusts.