A bill that seeks to allow trusts to set up units in special economic zones (SEZs) by amending the SEZ law was approved by Parliament Thursday, with the Government asserting these zones were an engine of growth and employment. The Rajya Sabha gave its nod by a voice vote, a day after the Lok Sabha passed the Special Economic Zones (Amendment) Bill, 2019.
The Bill will replace the Special Economic Zones (Amendment) Ordinance, 2019, which was promulgated in March. The ordinance had paved the way for trusts to set up units in these zones. Replying to the debate on the Bill, Commerce and Industry Minister Piyush Goyal said: “This is a small amendment that has large impact on investment, job and growth”.
Goyal said the government expects about USD 3 billion, which is around Rs 20,000 crore investments annually and justified issuance of ordinance saying that economic development cannot stop if some members or party in Parliament create hurdles in passage of legislations.
The previous government had withdrawn exemptions in income tax, dividend distribution tax and MAT and because of it the SEZ framework faced some stress, he said, adding that it left several investors in lurch.
Participating in the debate, D Raja of CPI, sought to corner the government about the tearing hurry to bring the ordinance on SEZs. Opposing the bill, TK S Elangovan of DMK also questioned the urgency to pass the ordinance, saying it's an “insult” to Parliament.
AAP member Sanjay Singh wanted to know whether the government has any policies to return unutilised land to farmers and to provide employment to local people in SEZs. P Bhattacharya (Cong) said barren land should be used for SEZs and not agricultural land.
Naresh Gujral of Akali Dal supported the bill, saying the country needs FDI. But he asked the government to have consistent policies to give confidence to investors.
While Congress leader Jairam Ramesh asked what the hurry was to bring an ordinance on the bill just a week before general elections were announced on March 2, 2019, TMC leader Derek O'Brien said his party grossly opposed SEZs as this business model has not worked in India. Supporting the bill, Ram Gopal Yadav (SP) asked about government scrutiny of the trust which invest in SEZs.