Amendment to the Special Economic Zones Act, 2005

Amendment to the Special Economic Zones Act, 2005

The Union Cabinet, chaired by the Prime Minister  has approved promulgation of  an Ordinance to amend the definition of  “person”, as defined in sub-section (v) of  section 2 of  the Special Economic Zones Act, 2005 (28 of  2005) to  include a trust, to  enable the setting up of  a unit in a Special Economic Zone by a trust, as also to  provide  fl exibility to  the Central Government to  include in this definition of  a person, any entity that the Central Government may notify from time to  time.

Impact: 

The present provision of  the SEZs Act, 2005 do not permit ‘trusts’ to  set up units in SEZs. The amendment will enable a trust to  be considered for grant of  permission to  set up a unit in SEZs. The amendment will also provide  flexibility to  the Central Government to  include in this definition of  a person, any entity that the Central Government may notify from time to  time. This will facilitate investments in Special Economic Zones.