Government announced that the enterprises operating in SEZ will be able to import used machinery without any quantitative restrictions. However, this machinery should not be used previously used by the assessee (unit-owner) or previously used in India.
Recently, the rule which prohibited SEZ facilities to install used machinery was eliminated. Now, the companies can use to use second-hand machinery and plant previously owned by the assessee or used in the country to the extent of 20 percent of the total value of machinery or plant used in the business.
The total value of such machinery or plant so transferred should not exceed 20 percent of the total value of machinery or plant used in the business.
When Fibre2fashion correspondent contacted Alok Industries, company official stated, “This new rule will further promote companies in SEZ. Earlier, high investment was required for new machineries, which will now reduce. Since SEZ is mainly for exporters, export rate is bound to increase. More entrepreneurs will be benefited.”
Officer from Karnataka Industrial Areas Development Board (KIADB) Zonal Office, also seems to be pleased with this Government decision. He said, “This move is very proactive and will boost the morality and efficiency of the units. It will help increase productivity as they will be able to procure advanced machinery at lower costs. This will also boost and enhance labour skills.”
Experts say that this amendment will benefit small and medium sized enterprises (SMEs) most. They will not only be use SEZs to the fullest but also be able to upgrade their production, both, in terms of quantity and quality.
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