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cial financial zone (SEZ), a transfer aimed toward selling ease of doing enterprise. In response to an instruction given to all zonal improvement commissioners of SEZs, the ministry stated it has obtained representations from stakeholders expressing difficulties in following the procedures to exit from a zone because the exiting items usually are not capable of recuperate the worth of their monetary property.
“The matter has been examined in session with involved stakeholders. So as to facilitate the sleek operation of enterprise actions by SEZ items and for the convenience of doing enterprise….clarifications are issued for the switch of area underneath the extant provisions of Rule 74 of SEZ Guidelines, 2006,” the instruction stated.
Rule 74 offers with the exit of items from a zone.
As per the laid out process now, the SEZ authority will have interaction an unbiased valuer to evaluate the present worth of the bodily property in addition to monetary property, within the nature of unutilised portion of any upfront lumpsum cost, if any, within the nature of premium, advance lease leases made by the exiting unit paid on the time of issuance of letter of approval.
“When the exiting unit recognized a possible purchaser, such potential purchaser shall be required to point the periodic lease lease for the area that they’re ready to pay to the authority for the area being vacated by the exiting unit,” it stated.
After that, the SEZ authority will promote the supply of area and conduct an e-auction amongst eligible bidders for allocation of the stated area based mostly on bids to be submitted by eligible bidders.
It added that whereas this association entails the switch of property of an exiting unit to an eligible incoming unit, the exiting unit will proceed to stay chargeable for any legal responsibility pertaining to the interval of its operations which will come up sooner or later.
Commenting on the transfer, Gems and jewellery Export Promotion Council (GJEPC) Chairman Colin Shah stated that it’s a historic choice for the items in SEZ as it can assist current items to scale up at a time when exports are booming and also will allow new items to amass area in SEZ.
“Until 2013, there was no situation of surrendering the properties again to SEZ, however with a situation being imposed that even the bought premises need to be surrendered again to SEZ for public sale which was creating obstacle in mortgage and getting loans. No less than 50 per cent of the property in SEEPZ (Santacruz Electronics Export Processing Zone) was unutilised or underutilised for years,” the council stated.
Advantages of area switch coverage embrace current items can exit simply, transparency within the switch, hybrid of public sale and direct settlement and profit to buyer-seller and no loss to the federal government, it added.
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