The Hindu Business Line : Agri export zones may have single investment window

The Government is looking to create a single investment window for all agri export zones (AEZs). Plans are afoot to have one AEZ functioning in each State in 2006-07.

"We must have Rs 60-70 crore as the window of investment for AEZs. The money will be found either from national horticulture mission or Assistance to States for Infrastructure Development for Exports and Allied Activities (ASIDE). So far, all the proposals are on paper and we have to give some investment focus to such zones and bring some money on the table," said Mr Jairam Ramesh, Minister of State for Commerce, at a meeting organised by the Forum of Financial Writers today.

He added that five Ministries are doing different things that are basically in the nature of AEZs.

"The Agriculture Ministry is doing horticulture zones, the Food Processing Ministry food zones, the Commerce Ministry AEZs, the Health Ministry medicinal plant zones, and the Panchayati Raj Ministry is doing rural business hubs. All these five have to come together."

Towards this end, Mr Jairam Ramesh said, he has already had two meetings - one with the Union Agriculture Minister, Mr Sharad Pawar, and the other with the Secretary.

"On April 17 or 18, we have called a meeting with States (six to begin with) where there is potential and where election code is not in existence."

On special economic zones (SEZs), the Minister said that he saw manufacturing being affected positively on account of the fiscal incentives provided under this framework.

On free trade agreements (FTAs), Mr Jairam Ramesh said that such agreements have both a political dimension and an economic dimension.

"FTAs bring macro-benefits and also micro pains. We have to manage the micro pains. The FTA with ASEAN, when it comes up, may impose some economic price, but would also yield political dividends."

Stating that the non-economic and non-trade aspects of FTAs are leading the rush to such agreements, the Minister said that he was not an advocate of indiscriminately entering into FTAs, as the country is doing.

"One has to be little careful and look at the impacts. We should also see what we are getting in return for the FTAs. It seems to me that in many of these countries, we will get more in investments and services."

The Minister also said that the Government would be sensitive to the special needs of agriculture in its negotiations on FTAs.

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