The government is likely to propose a new law to replace the current law governing Special Economic Zones (SEZ). CNBC-TV18 learns that the new act, titled Development (Enterprises and Services) Hubs Act 2022 or "DESH" Act, is also likely to contain a list of negative activities.

The government is likely to table the bill in the upcoming monsoon session of parliament.

The new act will also propose to look at defining domestic tariff area as all of India, except the development hubs. After this Act comes into effect, the existing EOUs and SEZs will become development hubs and the Act will also aim to provide an online portal for a single window clearance to establish and operate development hubs.

The proposed law will also provide for development hubs to contain offshore banking units subject to Reserve Bank of India's nod.

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