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Our Bureau

Hyderabad, Dec. 6 The Empowered Group of Ministers (eGoM) is in favour of classifying special economic zones (SEZs) under ‘infrastructure’ projects with the objective of bringing about flexibility in external commercial borrowing (ECB) norms.

As most SEZs now face liquidity crunch hampering their investment plans, this move is seen to be helping them raise funds from different sources.

The matter is under active consideration of Reserve Bank of India and a favourable decision will be taken soon, according to Mr Lalit B. Singhal, Director-General Export Promotion Council for EOUs & SEZs.

Speaking to newspersons here today at a conference on SEZs hosted by the Confederation of Indian Industry, Mr Singhal said the views of the eGoM, headed by Mr Pranab Mukherjee, Minister for External Affairs, have been forwarded to the RBI.

The eGoM has had three meetings and they too felt that by classifying SEZs under infrastructure projects just at industrial parks, promoters of these zones will have access to funds through the ECB route.

Citing data on SEZs, Mr Singhal said that SEZ scheme has attracted 3,600 zones across 138 countries, employing about 70 million directly and about three times indirectly. These SEZs have seen cumulative investments of about $1600 billion contributing to total exports of about $750 billion.

Mr Singhal said that 80 zones have achieved exports of Rs 66,000 crore in 2007-08 and according to current projections, they are likely to contribute to exports worth Rs 1,25,000 crore during 2008-09 providing direct employment of eight lakh personnel by 2009. The Vice-Chairman of CII-Andhra Pradesh, Mr Y. Harish Chandra Prasad, hoped that the Prime Minister, Dr Manmohan Singh, now handling additional portfolio of Finance Ministry, would be able to address concerns of SEZs.

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