SPECIAL ECONOMIC ZONES (SEZs) IN INDIA

Prepared by : harsh kothari MBA GLSICT

Introduction
- From ancient times Harappan, Roman to mediaeval times - Modern times Free ports A
den, Singapore, Hong Kong Difference - Modern version of export zones starting fr
om Puerto Rico (USA)
-
India Kandla in 1965.
SPECIAL ECONOMIC ZONES (SEZs) IN INDIA
Common Features of SEZs Duty-free imports of capital goods and inputs for produc
tion for Export Liberal access to foreign exchange Encouragement to FDI Generous
tax concessions esp. in early years Flexible Labour Laws
SPECIAL ECONOMIC ZONES (SEZs) IN INDIA
Rationale for SEZs
- Main benefits sought from SEZs are:
* * * Faster economic growth Employment generation on a large scale Earning more
foreign exchange
* Introduction of modern technologies & their demonstration and spread effects
SPECIAL ECONOMIC ZONES (SEZs) IN INDIA
SEZs in India Experience with EPZs Starting with Kandla in 1965; SEEPZ in 1972,
Based on reviews of working, Cochin, Falta, Madras (Chennai) and NOIDA in 1984 a
nd Vizag in 1989 Less than 40% of approvals fructified
Rest cancelled or lapsed
-
-
Employed only 0.01% of labour force FDI was less than 20% of total investment Ac
counted for less than 4% of exports. Net export much lower as imports were over
60% of exports
SPECIAL ECONOMIC ZONES (SEZs) IN INDIA
SEZs in India The reasons were: (i) Very Small Size of EPZs
Location Kandla (Gujarat) SEEPZ (Mumbai) Cochin (Kerala) NOIDA (UP) Chennai (TN)
Vizag (AP) Falta (WB)
Size (Sq.miles) 1.17 0.15 0.16 0.48 0.41 0.56 0.44
SPECIAL ECONOMIC ZONES (SEZs) IN INDIA
SEZs in India (ii) (iii) (iv) Inadequate infrastructure Lengthy procedures tough
labour laws In the 1990s, as a part of reforms, powers delegated to zone author
ities, additional fiscal incentives were given, policy provisions were simplifie
d and greater facilities were provided leading to some, not very significant, im
provements.
SPECIAL ECONOMIC ZONES (SEZs) IN INDIA Special Economic Zones in Kerala
1. SEZ for Electronics at Kalamassery, Ernakulam District The SEZ is planned in
an area of 30 acres. Expressions of interest have been called for getting a co-d
eveloper. However, the response has not been very encouraging and hence KINFRA,
who is the implementing agency, is on the lookout for a co-developer. 2. SEZ for
Food Processing Kakkanchery, Malappuram District The SEZ is planned in an area
of 30 acres for which KINFRA on the lookout for a co-developer. Government of In
dia has already given approval. 3. SEZ for Animation and Gaming, Trivandrum Dist
rict This SEZ is planned in Trivandrum District within the already existing vide
o park of KINFRA. SEZ is planned in an area of 25 acres. KINFRA has also constru
cted a building 1,50,000 sq.ft. and is on the lookout of a co-developer. Governm
ent of India has already given approval.
SPECIAL ECONOMIC ZONES (SEZs) IN INDIA Special Economic Zones in Kerala
4. Infopark, Ernakulam District Approval obtained from Government of India for c
onverting the existing Infopark into a SEZ. Discussions are being held with Duba
i Internet City for handing over the Infopark to be developed as Smart City. 5.
Technopark, Trivandrum District Inprinciple approval has been obtained by the ex
isting Technopark, Trivandrum from Government of India for converting 100 acres
of their 3rd phase expansion into a SEZ for IT & IT enabled services. 6. New SEZ
s being proposed by KSIDC are:SEZ for health care products in Trivandrum Distric
t (100 acres) SEZ for textiles at Cherthala, Alappuzha District (250 acres) SEZ
for petrochemical products at Kasargod District (1000 acres)