No increase in lease rent for SEZ units for FY20-21: Government

Union Government has said that there will be no increase in lease rent for the Special Economic Zone (SEZ) units for the financial year 2020-21. The decision has been taken to provide interim relief to SEZ units in lease rent on account of COVID-19 pandemic.

Commerce and Industry Ministry said payment of lease rent of the first quarter is to be deferred up to July 31, 2020, for all SEZ units. The deferment will not invite any interest.

The Ministry has also asked Development Commissioners (DC) of Special Economic Zones to advise developers of State Governments and private SEZs to consider similar relief measures in their zones. There are seven government-owned SEZs in the country and are under the supervision of a development commissioner (DC). These SEZs are located in Falta, Cochin, Kandla, Chennai, Noida, Santacruz and Visakhapatnam.

After the imposition of lockdown from March 25, all units are closed, barring food and pharma related facilities which have been allowed to operate during the period. SEZs are major export hubs in the country as the government provides several incentives and single-window clearance system to them. Exports from SEZs rose 14.5 per cent to Rs 3.82 lakh crore in April-September 2019-20. It was Rs 7.02 lakh crore in the entire 2018-19 financial year.