In a move aimed at giving a fillip to exports, the government on Thursday announced units in special economic zones will be exempted from payment of statutory dues like contribution to Employees Provident Fund and Employees State Insurance for a five-year period.

"We have taken a decision to exempt units in SEZs from payment of statutory dues for a five-year period covering ESI and EPF contributions", Labour Minister Sahib Singh Verma said at the 23rd National Employee Relations Conference in New Delhi, organised by Standing Conference of Public Enterprises.

Verma said the exemptions had been put in place from Wednesday after Gujarat became the first state to enjoy the concessions.

He said the move would help domestic industry in a big way by way of increased production and greater employment opportunities.

Several states had petitioned the Centre seeking relaxation in labour norms for setting up these zones. Among the major units expected to gain from the move include the Positra SEZ promoted by Sea King Infrastructure in Gujarat.

Verma also announced that government had taken an in-principle decision to allow fixed-term labour contracts.