SEZ

Dear friends,

India recognized the effectiveness of Export Processing Zone(EPZ) for promoting expertise in 1965 with a view to overcome the shortcomings experienced on account of control on clearances, absence of world class infrastructure, and an unstable fiscal regime with a view to attract larger foreign investments in India, the Special Economic Zones(SEZ's) policy was announced in August 2000. This policy intended to make SEZ's an engine for economic growth supported by quality infrastructure complemented by attractive fiscal package, both at the center and the state level, with a minimum possible regulation. SEZ's in India functioned from 1-11-2000 to 9-2-2006 under the provisions of Foreign Trade Policy and fiscal incentives were made effective through the provisions of relevant statutes. Special Economic Zone Act 2005 passed by Indian Parliament in May 2005 and Indian Presidents assent was given on 23rd June 2005. After consultations it came in to effect on 10th February 2006.

The main objectives of SEZ Act are
1. Generation of additional economic activity
2. Promotion of export of goods and service
3. Promotion of investment from domestic and foreign sources
4. Increase the quantum of employment opportunities
5. Development of infrastructure facilities

Approval from single window, Board of Approval(BoA) contains 19 member inter-ministerial SEZ Board. Chair man of the board is Secretary, Department of Commerce, Govt of India. Decisions of BoA are with consensus. Up to August 2008, in the following states Special Economic Zones created and started functioning

Andra Prdesh(56 nos), Gujarat(22 nos), Hariyana(20 nos), Karnatka(23 nos), Kerala(8 nos - 4 in Ernakulam dist, 3 in Thiruvananthapuram dist and one in Kozhikode dist), Maharastra(35 nos), Tamil Nadu(42 nos), Utter Pradesh(12 nos), West Bengal(8 nos) etc.

It is very clear that ZES is already started functioning and our neighbor states had made a good leap in this, still our ruling LDF partners wants to make the SEZ more stringent and wants enactments. This is like applying fertilizers on the fruit. If we alone make the SEZ Rules stringent what will be its outcome, will it attract entrepreneurs to our state?. SEZ Act was passed by the Parliament in 2005. If the LDF was against it, why they didn't pressurize the UPA to make it beneficial to the people as they claims now or if it was not possible why they didn't withdraw the support to the UPA Got at that time itself. I feel that the present decision will only cripple the progress of our state compared to our neighbor states.

Hope that our politicians will act wisely and lead our state to progress.
With best wishes
velayudhan