IT HANDBOOK SOUTH INDIA
The Union Government has converted into SEZs the erstwhile
caters to the needs of both units in the Special Economic
major EPZs located at:
Zone as well as of 100% EOUs located in Tamil Nadu,
Kandla and Surat (Gujarat)
Pondicherry and Andaman & Nicobar islands. The MEPZ is spread over an area of 262 acres (first phase 98 acres and
Cochin (Kerala)
the second 164 acres).
Santa Cruz (Mumbai-Maharashtra)
The Ministry of Commerce and Industries has introduced
Falta (West Bengal)
special features that include permission for establishing Offshore Banking Units and Container Freight Stations within
Chennai (Tamil Nadu) Visakhapatnam (Andhra Pradesh)
Noida (Uttar Pradesh)
Nanguneri, Tirunelveli (Tamil Nadu).
the zone, besides liberalised customs procedures. In light of the cost, time and efforts saved, the zone’s exports from over a dozen 12 sectors during 2006-2007 totaled Rs 1,647.93 crores.
BONANZA FOR IT
Currently, all the eight EPZs converted into SEZs are functional. In addition, three new SEZs approved at Indore,
In February 2006, the IT sector bagged the lion’s share of
Jaipur and Kolkata recently commenced operations. The
sector-specific special economic zones (SEZs) approved by
Directorate-General of Foreign Trade has declared the SEZs
the Union government across the country. Of the 43 sector-
at Santa Cruz, Kandla, Kochi, Vishakhapatnam, Chennai,
specific SEZs approved by the government, 26 relate to the
Falta, Surat, and Noida as specified ports of registration for
IT sector. The IT sector is followed by the apparel sector, with
import and exports under exim procedures. Currently, India
three SEZs approved in this sector.
has 15 SEZs, with the average size being 200 acres.
Apart from 43 formal approvals for sector-specific SEZs, the
MPEZ SPECIAL ECONOMIC ZONE
government has also given approvals in principle to 43 other
The MEPZ Special Economic Zone, established in 1984 with
als, the IT sector has had a dominant share, with 29 approv-
the objective of promoting foreign direct investment,
als. Of the SEZs approved (including in-principle ones) by the
enhancing foreign exchange earnings, and creating greater
government, at least 86 relate to sector-specific SEZs, 28 to
employment opportunities, was converted into a Special
multi-product SEZs and three to Free Trade Warehousing
Economic Zone on January 1, 2003. The added objective of
zones.
sector-specific SEZs. Even in respect of in-principle approv-
the SEZ is to facilitate exports through reduction of transaction costs.
CONFLICT OF INTERESTS
Located in Chennai (formerly Madras), the zone, headed by
The SEZs in the country are in the private/joint sector or have
Development Commissioner, is under the administrative
been established by the state government. However, this
control of the Ministry of Commerce and Industries, and
process of planning and development is under question, as in some of the states where the SEZs have been approved, there have been strong protests from the farming commu-
8 EXPORT PROCESSING ZONES (EPZS) HAVE BEEN CONVERTED INTO SEZS. THESE ARE FULLY FUNCTIONAL. ALL THESE SEZS ARE IN VARIOUS PARTS OF THE COUNTRY IN THE PRIVATE / JOINT SECTORS OR BY THE S TATE GOVERNMENT.
nity. Farmers in these states accuse the government of forcibly snatching their fertile land at unreasonably low prices in total disregard of market value. Some companies, including Bajaj, have commented against this policy. These companies have suggested using barren and wasteland for establishing SEZs. In addition, the cost of setting up SEZs is under scanner.
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March - 2008