Seeking to allay the Finance Ministry's apprehension about loss of revenue due to setting up of special economic zones (SEZs), Commerce and Industry Minister Kamal Nath on Saturday said that the fears did not have any basis and it would not lead to loss of revenue.
SEZs would generate additional revenue and generate employment to a large extent, Nath told reporters.
On Friday, the Finance Ministry said granting of tax sops to SEZs would lead to a revenue loss of Rs one lakh crore for the government.
"The finance ministry should have said this earlier. The SEZ Act is now in place," the minister said.
Asked whether there was a dispute between the Commerce and Finance ministry, Nath said there was no such case.
Nath said his ministry was in full support of the proposals forwarded by the West Bengal government on the composition of land structure of SEZs.
"West Bengal's model is a good one and will also lead to employment generation," he said.
He was speaking on the sidelines of an annual awards function of The Gem and Jewellery Export Promotion Council in Kolkata.