Lok Sabha Question No. 688 (UNSTARRED), answered on 2020-09-16
Subject: Impact of Corona on SEZs
Ministry: COMMERCE AND INDUSTRY
Asked by: Ajay (Teni) Misra

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO.  688 (H) TO BE ANSWERED ON 16 th SEPTEMBER, 2020

## IMPACT OF CORONA ON SEZs

## 688(H). SHRI AJAY KUMAR MISRA TENI:

Will the Minister of COMMERCE & INDUSTRY ( वािण�य एवं उ�ोग मं�ी ) be pleased to state:

- (a) whether the units established in Special Economic zones have also been affected adversely during the Corona period;
- (b) if so, the details thereof;
- (c) whether  the  Government  is  contemplating  to  make  some  provisions  including  interest moratorium, non-increase of lease rate, deferment of rate payment, etc., in order to provide relief to units established in Special Economic Zones from corona crisis; and
- (d) if so, the details thereof?

## ANSWER

okf.kT; ,oa m|ksx ea=h ( Jh ih;w'k xks;y ) THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

(a) and (b):  A comparative statement in respect of merchandise exports from SEZs during the period of April to August, is as under:

| Merchandise exports (April-August, 2020)   | Merchandise exports during the corresponding period of previous year (April - August, 2019)   |
|--------------------------------------------|-----------------------------------------------------------------------------------------------|
| Rs. 81,481 Crores                          | Rs. 1,30,129 Crores                                                                           |

However,  Services  exports  has  shown  a  growth  of  9%  during  April'2020  to  August'  2020  in comparison to corresponding period of previous year.

(c) and (d): To  facilitate  SEZ  Developers/Co-developers/Units,  following  measures  were  taken during the COVID-19 outbreak:

- i. The  last  date  of  filing  of  various  compliances  was  extended  from  31.03.2020  to 30.06.2020  e.g.  Quarterly  Progress  Report  (QPR), SOFTEX  form  and  Annual  Performance Reports (APR).
- ii. Development  Commissioners  (DCs)  were  directed  to  facilitate  extension  of  Letter  of Approvals (LoAs) and other compliances scheduled to expire during COVID pandemic, through electronic mode, in a time-bound manner. Further, DCs were directed in cases where it was not possible to grant extension through electronic mode to ensure that the Developer / Co-developer / Units did not face any hardship due to such expiry of validity during this period of disruption, and ad-hoc interim extension / deferment of the expiry date was granted without prejudice till 30.06.2020.
- iii. Along with IT/ITES Units, Non IT/ITES Units in SEZs have also been allowed to take desktop/laptop outside SEZs to work from home. This has enabled exports especially in IT/ITES sector to register a positive growth despite lockdown.
- iv. Power has been delegated to Development Commissioners for broad-banding in  case  of  manufacturing  of  essential  items  like  masks,  sanitizer,  gowns  and  other protective/preventive  products/instruments  subject  to  post-facto  ratification by  the Approval Committee.
- v. Directions were issued that there should be no increase in lease rent for the units in Central Government SEZs for the Financial Year 2020-21.
- vi. Payment of lease rent of first quarter was deferred upto 31st July 2020 for all the units in Central Government SEZs. Further, Development Commissioners were also requested to allow  the  units  to  clear  the  first  two  quarterly  instalments  of  lease  rent  in  six  equal instalments starting from October 1 st , 2020.
- vii. Development  Commissioners  were  also  requested  to  advise  developers  of  State Government/Private SEZs to consider similar relief measures in their zones.
- viii. All DCs have been sensitized to adopt electronic work culture and to extend necessary support to the units, including those involved in manufacturing of drugs, essential items etc, and to follow COVID guidelines.

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