Lok Sabha Question No. 2715 (UNSTARRED), answered on 2021-03-10
Subject: Impact of Corona on SEZs
Ministry: COMMERCE AND INDUSTRY
Asked by: Brijendra Singh

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO.2715 TO BE ANSWERED ON 10 th MARCH, 2021

## IMPACT OF CORONA ON SEZs

## 2715. SHRI BRIJENDRA SINGH:

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

- (a) whether  the  Government  has  made  a  final  assessment  on  losses  incurred  to  units established in Special Economic Zones (SEZs) during the Corona period;
- (b) if so, the details thereof;
- (c) whether the Government has taken some measures to help units established in SEZs; and
- (d) if so, the details thereof?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI HARDEEP SINGH PURI)

- (a) and (b):  The Government does not make an assessment of losses incurred by units in Special Economic Zones (SEZs). SEZ units have an obligation to achieve positive Net Foreign Exchange (NFE) earnings to be calculated cumulatively for a period of 5 years from the commencement of production.
- (c) and (d): Yes  Sir,  the  following  measures  were  taken  during  the  COVID-19  outbreak  to mitigate the hardship and to facilitate SEZ Developers/Co-developers/Units:-
- 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. 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 1st, 2020.
- vi. Development Commissioners were also requested to advise developers of State Government/Private SEZs to consider similar relief measures in their zones.
- vii. All Development Commissioners 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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