Press Information Bureau

Government of India

Ministry of Commerce & Industry

07-May-2012 15:19 IST

Exports from SEZs

The 30th Report of the Public Accounts Committee (2010-11) on performance of SEZs has, inter-alia, observed that out of an overall export of Rs. 7,149.23 crore made by a sample 22 SEZ units, the actual export content was only Rs. 1,999.27 crore (28 per cent) and the remaining Rs. 5,149.96 crore (72 per cent) related to Domestic Tariff Area (DTA) earnings.

The total value of exports from SEZs during the financial year 2009-10, 2010-11 and 2011-12 have been Rs. 220.7 thousand crore, Rs 315.9 thousand crore and Rs. 364.5 thousand crore respectively, registering growth of 121%, 46.11% and 15.38% over the exports of the immediately preceding financial year.

No export targets are set for Special Economic Zones (SEZs). However, the SEZs are under obligation to achieve positive Net Foreign Exchange (NFE) earnings to be calculated cumulatively for a period of 5 years from the commencement of production, failing which the units shall be liable for penal action under the provisions of the Foreign Trade (Development and Regulation) Act, 1992.

This information was given by Shri Jyotiradiya M. Scindia, Minister of State for Commerce & Industry in written reply to a question in Lok Sabha today.

DS/GK

Positive Net Foreign Exchange requirement: SEZ units must meet cumulative five-year NFE or face penal action under law. SEZs reported rising aggregate export values while a notable share of declared export value comprised DTA earnings. SEZ units are subject to a Net Foreign Exchange (NFE) obligation, calculated cumulatively over a five year production period; failure to achieve positive cumulative NFE exposes units to penal action under foreign trade law. No explicit export targets are set for SEZs.