Parliament’s Budget Session that commenced on January 31st last month will conclude on April 6. At present, the session is in recess, which will end in mid-March. In Parliament, currently, 35 Bills are pending. In this session, 18 Bills are listed for introduction, consideration, and passing (excluding the Finance Bill, 2023). Here’s a list of some important ones:
- The Development of Enterprises and Services Hubs (DESH) Bill, 2023 – Seeks to replace the Special Economic Zones Act, 2005.
DESH act can be game changer! Why?
Websol plant is SEZ
In SEZ what ever you do import for raw materials is exempted from custom duty if you doing your final product export
Earlier their was zero custom duty on cell and module and only safe guard duty on that so websol can sell its products in domestic market easily due to zero custom duty
Now from 1-4-22 their is zero Safe Guard duty and 25% custom duty on cell and 40% custom duty on modules to reduce imports from China and other countries
Websol in SEZ can sell its products in domestic markets but with custom duty so it’s impossible to survive
Because their are lots off empty lands in SEZ areas which is unused as compulsory export in SEZ is the only option so now new DESH act will give permission to companies in SEZ to sell their products either in exports or in domestic markets( no custom duty applies)…. New act will open doors for Webeee to sell their products either in India or export and just now in India their is lots of scope to achieve 500GW target so that’s why that act is important for company
You can’t keep safe guards duty for more then 3-4 years as per WTO guidelines so government opted custom duty to reduce import of cell and modules
the passing of act itself will set the ball rolling for players having capacities in SEZ (overhauled by DESH) and looking to expand capacities (financing will be easy with act passed & future clear with lenders).
Existing capacities for all sectors located in SEZ (replaced by DESH) won’t have to pay customs duty (or very min taxes) to sell within India immediately, so production can be started to capacity if there is demand – and we know in Solar sector is huge – so impact would be immediate post passing of the act.
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