New Delhi, April 2 -- The government has allowed manufacturing units operating in Special Economic Zones (SEZs) to undertake domestic sales under a time-bound framework. Sources in the government says the notification a key budget announcement was announced to give relief to domestic industry.

According to the sources, the scheme is linked to the percentage of export turnover and also factors in the date of commencement of manufacturing activity within SEZs. It has been designed as a targeted, short-term intervention, with its applicability limited to one year.

Officials emphasized that the core objective of SEZs is promoting exports and it remains unchanged, and there is no dilution of the SEZ framework. The move should be seen in the ...