Govt plans SEZ Act amendments to ease rupee transactions, boost occupancy

 

The Commerce Ministry is preparing a Cabinet note to remove the mandatory foreign exchange payment requirement for service transactions conducted by Special Economic Zone units, permitting them to accept Indian Rupees for domestic services. Currently, under SEZ rules, IT, ITES and financial service entities operating within these zones are required to bill and receive payments in convertible foreign currency, even when providing services to domestic tariff area clients or other onshore entities. The proposed amendment aims to streamline business operations, reduce currency conversion costs and ease administrative compliance burdens for service exporters facing operational friction under current currency regulations. By permitting rupee-denominated billing and settlement for domestic service deliveries, the government seeks to improve occupancy rates in underutilised SEZ IT parks, foster seamless integration with domestic service supply chains and boost overall service sector competitiveness across the domestic market, according to a report.

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