The government has said it will examine proposals for the simplification of procedures for export oriented units and special economic zones in a time-bound manner.

Speaking at an open house discussion organised by the Export Promotion Council for EOUs and SEZs at Kandla, A K Presad, director (customs), indicated a fast track scheme for recognised EOUs could be introduced.

He also agreed to exempting EOUs from the requirement of bank guarantee, provided the unit was in existence for a specified period of time, a statement by the Export Promotion Council for EOUs and SEZs said.

GK Pillai, additional secretary in the commerce ministry said various proposals relating to infrastructure in the SEZs could be examined.

The proposals relating to Assistance to States for Infrastructure Development for Exports would also be taken up to improve the quality of infrastructure. Pillai also unveiled a dedicated water storage facility for Kandla SEZ.

He also said various procedural simplification proposals would be taken up in a time bound manner so that the transaction costs faced by Indian exporters in SEZs and the EOUs were reduced.

The government recently decided to simplify procedures for seeking exemption of from payment of service tax on supplies of services from the domestic tariff area to SEZs.