The Hindu Business Line : Kerala Govt mulls free trade zone in Kochi

THE State Government is considering the prospects of a free trade zone in Kochi. This is in line with the New Foreign Trade Policy (NFTP) of the Centre, which envisages a series of free trade and warehousing zones in the country.

The Chief Minister, Mr Oommen Chandy, said here on Thursday that various proposals in the policy would benefit the agricultural and industrial sectors of the State.

The Chief Minister said that the policy contained specific measures favourable to Kerala, such as declaring Aroor as a special economic zone (SEZ) for the seafood industry and according Kannur the status of a "town of excellence" for the handloom industry,

He noted that the declaration of Aroor as an SEZ would give the much-needed impetus to the seafood industry and attract more foreign investment to the sector. Similarly, the new status to Kannur has opened up great possibilities for rapid growth of the traditional handloom sector.

As a matter of fact, Kannur has already earned a name for itself in the international market with export of handloom material worth Rs 250 crore a year, he noted.

The proposed biotechnology park in Kochi also stood to gain, with the policy move to extend to such parks all the facilities currently enjoyed by 100-per cent export oriented units (EoUs). Mr Chandy pointed out that the decision to allow utilisation of ASIDE (Assistance to States for developing Export Infrastructure and Allied Activities) funds for agricultural export zones would help meet the infrastructural needs of the zones.

Besides, the move to allow duty-free import of capital goods under the Export Promotion Capital Goods (EPCG) Scheme and to permit such capital goods to be installed anywhere in the agricultural export zones, would help increase the export of value-added farm products.

Yet another new scheme beneficial to the State is `Visesh Krishi Upaj Yojana,' which is designed to boost the export of fruits, vegetables and flowers and their value-added products.

This would enhance employment opportunities in the rural regions of the State, the Chief Minister said.

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