NEW DELHI: In a relief to Special Economic Zone (SEZ) units, the Central government has allowed them to defer payment of lease rent for the first quarter to July 31, 2020. The Union Ministry of Commerce, in consultation with the Department of Expenditure, has also decided that there will be no increase in lease rent for SEZ units for the financial year 2020-21.

The commerce ministry on Monday issued a letter to the Development Commissioners of all SEZs, stating that the deferment of lease payment will also not attract any interest.“DCs are requested to take necessary action on the matter. DCs are also requested to advise developers of state government and private SEZs to consider similar relief measures in their zones,” the letter said, adding that the relaxation was being given on account of the crisis brought about by the Covid-19 outbreak.

Earlier, Special Economic Zones had sought relief package from the government to boost exports and jobs amidst the coronavirus lockdown.

Export Promotion Council for SEZs and Export-Oriented Units, the apex body for promotion of special economic zones, had written to Prime Minister Narendra Modi last month, seeking his intervention in ensuring an incentive package for the sector, which is badly hit due to the lockdown on account of the virus outbreak.

The letter claimed that there is more than 50 per cent loss of export orders. It also complained about the issue of liquidity over delayed payments, and said that it will impact employment in the sector.The council demanded that the government should either extend the sunset clause for SEZs or announce a financial package, so that new investments would come forward.