Government has relaxed the sub-contracting norms for the manufacturing units in SEZ (special economic zones)
Earlier the SEZ manufacturing unit were only allowed subcontracting to DTA ( Domestic Tariff Area) units for just 1 year. This period has now been extended to 3 years.
This relaxation is targeted to augment the exports for the units manufactured by SEZ companies. Since these units have a major share in India’s exports.
This relaxation is only subject to SEZ manufacturing units having average annual shipments of 1000 crore rupees in atleast 2 of the previous 4 years & have an unblemished track record & no penalties levied.
This was initially requested by the the major manufacturing units in SEZ to the Govt. inorder to augment their production and export shipments.