The Hindu Business Line : ‘SEZ investment to touch Rs 2 lakh cr’

Mumbai, Aug 22 The investment in special economic zones is likely to touch Rs 2 lakh crore by December 2009 from the current Rs 77,000 crore, the Commerce Secretary, Mr G. K. Pillai, said here on the sidelines of an international conference on SEZs.

Mr Pillai said direct employment by then would be up to eight lakh and indirect employment 16 lakh as against the current 2,14,499.

The empowered group of ministers (EGOM) has recently decided to reduce the land requirement for handicraft SEZ from 100 hectare to 10 hectare and also refund the service tax component paid by developers and units outside of the SEZ zone.

Drawback benefits

This apart, developers will also be entitled to duty drawback benefits for sourcing material such as steel and cement for infrastructure purposes from the domestic tariff area, he said.

Emphasising that the issue of land acquisition was of serious concern, he said 40 per cent of the SEZs that had come up were on land in possession of industrial development corporations of States.

513 formal approvals

The Centre has accorded formal approvals for 513 SEZs in 22 States covering an area of 62,519 ha of which 250, spread over 29,398 ha, in 18 States were notified. Those awarded in-principle approval totalled 138. In FY08, SEZ exports amounted to Rs 66,638 crore, up 92 per cent over the previous year.

Asked whether export incentives would be reviewed in light of the rupee depreciating against the dollar, he said it was unlikely as the industry had to remain competitive.

Mr Pillai also said inflation was not likely to cross 13 per cent in the coming week as edible oil prices and global price of maize had dropped, besides the stock position of rice and wheat was comfortable.

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