New Delhi: Government will bring in a Central legislation to remove roadblocks in special economic zones (SEZ) to enable them to emerge as engine of growth by attracting substantial foreign direct investment (FDI).

"We are considering a Central legislation. The draft is ready," Commerce Minister Arun Jaitley said, adding the purpose behind it was to free SEZs from certain statutory provisions and create a deemed foreign territory.

The world over, SEZs contribute 15-20 per cent of country's exports and in the case of China it was as high as 40 per cent, Jaitley said emphasising the need for evolving a political consensus on the issue.

The idea behind the legislation is to free SEZs from complying with certain municipal requirements to create a competitive regime, he said after unveiling the EXIM Policy 2003-04 on March 31.

Stressing the need for infrastructural bottlenecks, Jaitley maintained no Constitution amendment would be required to have liberal contract labour regime in SEZs.

To a question on progress of SEZs, Jaitley said it was for the state governments to ensure speedy development and Centre could only act as a facilitator.

PTI