CommerceMinister Piyush Goyal on Monday introduced a bill to allow trusts to set upunits in Special Economic Zones (SEZs) in the Lok Sabha.
The UnionCabinet had recently approved introduction of the Special Economic Zones(Amendment) Bill, 2019 to replace an ordinance which was promulgated in Marchby the previous government.
The ordinancehad paved the way for trusts to set up units in SEZs.
Accordingto the bill, after its amendment of sub-section (v) of section 2 of the SpecialEconomic Zones Act, 2005, a trust or any entity notified by the centralgovernment will be eligible to be considered for grant of permission to set upa unit in SEZs.
The amendmentalso seeks to provide flexibility to the central government to include trustsin the definition of a person in a bid to facilitate investments in thesezones.
Anapplicant would have to approach the Board of Approval to set up a unit inthese zones which are treated as foreign entities in terms of customs ruleswhich is headed by the commerce secretary.
The presentprovisions of the Act do not permit trusts to set up units in SEZs and theperson defined in the Act who is allowed to seek permission for setting upunits does not include trusts.
