The government has permitted industrial units to move from one special economic zones (SEZ) to another after approval of the apex authority, the board of approval (BOA).

The approval to transfer units will be given on a caseto-case basis by the BOA. The board, chaired by commerce secretary, clears SEZ proposals and frames rules guiding these zones.

Permission to relocate could easily be granted to units that are yet to start their operations or units that have started sourcing inputs but not started production. BOA may take a cautious approach in cases where production and exports have started. Where production and sale of goods have started in a unit, one has to consider provisions for income tax exemptions for migration of goods.

The BoA, therefore, decided that permission would be given to units seeking transfer on a case to case basis.

Allowing SEZ units to shift base could help in business consolidation as companies with several units in different SEZs would have the option of bringing them under one roof. It would also help if for reasons of geographical proximity to a source of input or to a market, a unit owner wants to move to another SEZ.

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