New Delhi, May 11: Ministry of Commerce and Industry has announced that there would be no increase in lease rent for the Special Economic Zone (SEZ) units for the financial year 2020-21. In addition to this, the payment of lease rent of 1st quarter is to be deferred up to 31st July 2020 for all SEZ units.

Facing largescale cancellation of their global orders due to the spread of the Covid-19 pandemic, units in SEZ want the government to allow them to sell their products in the domestic market (Domestic Tariff Area) without payment of customs duties. Lockdown Extension May Shut 25% MSMEs Permanently, Liquidity Crunch Will Choke India's 6.9 Crore Small Traders: Experts.

No Increase in Lease Rent For SEZ Units For FY2020-21:

Not only are the orders getting cancelled, but several manufactured products are lying idle in units. People fear that there will also be minimal export orders in the near future. According to a PTI report, the apex body for promotion of special economic zones EPCES had sought help from PM Narendra Modi.

They demanded an incentive package for the sector, which has been facing numerous challenges due to the lockdown on account of Covid-19 outbreak. The letter to the PM states that due to the pandemic, there has been more than 50 per cent loss of export orders. In addition to this, liquidity too is badly hit on account of recovery of receivables pertaining to the lockdown in exporting countries as those companies there have clearly mentioned they will delay the payments.

(The above story first appeared on LatestLY on May 11, 2020 03:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).