Lok Sabha passes the Special Economic Zone (Amendment) Bill 2019 so as to replace the SEZ (Amendment) Ordinance, 2019

Special Economic Zone (Amendment) Bill 2019 is the first bill which is passed by the 17th Lok Sabha which came into session from 17th June 2019 and this first achievement of the Union Legislature just came within 15 days of its initiation i.e. on 26th June 2019.

The SEZ (Amendment) Bill 2019 is set to replace the SEZ (Amendment) Ordinance 2019 which was promulgated by the Hon’ble President of India in the month of March.

While introducing the bill, the Commerce & Industry Minister Shri Piyush Goyal quoted that “Special economic zones (SEZs) play an important role in promoting exports and economic growth of the country. Moreover, this amendment will pave  paved the way for trusts to set up units in these zones & such zones will be created in areas which lack the same in any country (answering to the question rolled out by the opposition) .”[1]  

IMAGE 1: Union Commerce & Industry Minister Shri Piyush Goyal.[2]

Furthermore, Commerce Minister also added that, “if desired results have not been achieved, the previous Congress-led UPA government is to be blamed. He said withdrawal of tax incentives in 2011 was a major reason for the SEZ not giving the expected results.” Goyal said,  in 2014 SEZs created 12 lakh jobs, and in 2019, it rose to 20 lakh, and this was one of the greatest reasons to bring the Amendment to the parent Act governing SEZ’s.[3] 

Now the bill so passed by the Lok Sabha will be presented in the Rajya Sabha for its approval.

[1] PTI, Bill to amend SEZ law passed by Lok Sabha, BUSINESS TODAY (June 28, 2019, 08:27 AM), https://www.businesstoday.in/top-story/bill-to-amend-sez-law-passed-by-lok-sabha/story/359285.html.

[2] Press Trust of India, Piyush Goyal introduces bill in Lok Sabha to allow trusts to set up units in SEZs, facilitate investment in such zones, FIRSTPOST (June 28, 2019, 08:34 AM), https://www.firstpost.com/india/piyush-goyal-introduces-bill-in-lok-sabha-to-allow-trusts-to-set-up-units-in-sezs-facilitate-investment-in-such-zones-6873921.html.

[3] Ibid.