Asserting that the final word had not been said on the sops for the labour intensive export oriented units (EOUs), Commerce and Industry Minister Anand Sharma on Friday said the government would come out with some more direction in this regard in April.
Setting at rest all speculation about the uncertainty over the future of the special economic zones (SEZs), Mr. Sharma said the latest budget had clearly addressed all the concerns of the SEZ units regarding continuation of sops. “There was speculation and concern on this account and the same have been settled in the new budget that outlines support and incentives for SEZs to continue without any dilution,” Mr. Sharma said.
SEZ unitholders and developers had raised concerns over continuation of tax benefits like income-tax holiday after the Direct Tax Code comes into effect, replacing the exiting Income-tax Act. In his budget speech, Mr. Mukherjee had stated that the government was committed to ensuring continued growth of SEZs to draw investments and boost exports and employment.
About the budget being silent on the continuation of sops to EOUs, Mr. Sharma said: “If there are any issues we will asses and if they are legitimate concerns which may have serious impact we can always take it up with the Finance Minister.” He also indicated that some other policy issues concerning the labour intensive units, which continue to register weak growth, would be addressed separately in April. At the same time, Mr. Sharma said that a comprehensive foreign direct investment (FDI) policy was likely to be given final shape by March 31 and it would address all the issues in a collective manner.
The EOUs are demanding extension of tax sops beyond March 31, 2010. The EOU scheme enables an entrepreneur to set up a unit anywhere in the country.
On exports, which have turned positive after 13 months since November 2009, Mr. Sharma said the shipments would further consolidate in the last quarter of the fiscal.
