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SEZ changes proposed

The Department of Commerce has proposed some changes in the eligibility criteria for special economic zones (SEZs) to link them to investments in R&D, innovation and employment generation rather than foreign exchange earnings. These could be part of the proposed changes as it plans to revamp the SEZ policy and align it with global trade norms. The department feels that it should replace the
positive net foreign exchange (NFE) norm, a primary requirement for SEZ units, with new eligibility criteria. A panel led by industrialist Baba Kalyani has suggested a revamp of the policy, according to officials who are aware of the development. The government is looking at possible options after India lost a case at WTO with respect to its export schemes.