The government has "in principle" decided to allow migration of units from one Special Economic Zone to another on a case-to-case basis, provided they get the approval of an inter-ministerial official panel.
Units seeking to shift from one tax-free enclave to other would have to approach the Board of Approval (BoA), which deals with SEZ proposals.
"The BoA has decided in principle to let units shift from one SEZ to the other, but each such request must be placed before it for consideration," an official said.
The decision to facilitate migration of units was taken by the BoA at a meeting presided by Commerce Secretary Rahul Khullar on June 8, he said.
The government had been receiving requests in this regard but there were no specific rules providing for the same, Khullar said, adding, "The decision will help unit owners tide over business difficulties and cost considerations."
With the consolidation of SEZs, shifting of units may become more frequent, industry sources said.
They said that requests of the sort could come from units that have not commenced business as well as the ones that have started import and procurement of goods, but haven't begun exporting. Operating units may also seek migration depending on their business requirements, they added.
The BoA had given its approval for setting up 2,850 units in SEZs across the country. There are 111 operational tax-free zones.