SEZs exports up 25% in Q1
The Financial Express, August 12, 2009, Page 2
fe Bureaus, New Delhi
Bucking the trend, exports from special economic zones (SEZs) increased by over 25% in three months ended June 2009, even as overseas sale of Indian goods remained in the negative territory during the period.
Briefing the Board of Approval (BoA) on SEZs on Tuesday, commerce secretary Rahul Khullar said between April and June this year, exports from 98 functional SEZs stood at Rs 39,410 crore.
“This is substantial, but could have been better,” Khullar told reporters after the meeting.
The BoA on Tuesday gave its in-principal approval to India’s largest solar energy-based SEZ. The 101-hectare zone will be built by Lanco Solar Pvt Ltd in Ramdaspur near Cuttak, Orissa. The developer is yet to complete land acquisition for the zone and so was given in-principle approval. There are four other solar energy-based SEZs, which had been cleared by the BoA in its earlier meetings.
The board formally approved two other SEZs which have completed land acquisition formalities. They are Brooke Bond Real Estates Pvt Ltd, Bangalore, and Karnataka State Electronics Development Corporation Ltd in Shimoga, Karnataka.
Overall merchandise exports from India in the three month period under review contracted 25.7% and stood at Rs 2,48,171 crore, as demand for goods in traditional overseas markets in the United States and Europe weakened. In fact, exports saw contraction for nine consecutive months ended June 2009.
“Over 90% of SEZ exports are from the manufacturing sector ranging from handicraft to hi-tech goods. The growth is despite the fact that none of the multi-product zones having area above 1,000 hectares have become operational,” said a commerce ministry official.
The ongoing economic slowdown has adversely impacted the development of zones as many developers have asked for more time to build their SEZs. In Tuesday’s meeting, the board allowed 25 formally approved SEZs an additional year to become operational. The zones have cited limited availability of liquidity and lesser demand for space in SEZs as reasons for slow development of the zones.
Khullar said that the commerce ministry is in discussion with other members of the board to establish a sub-committee under the BoA. It will look into procedural issues. The move will decrease the load on the BoA, and is expected to speed up clearance of SEZ-related policy bottlenecks.
The BoA also approved additional construction activities in the zones which can be started after the SEZ is notified and will not need separate permissions. These include setting up of bus bays, rail heads and fire stations.
The Financial Express, August 12, 2009, Page 2
fe Bureaus, New Delhi
Bucking the trend, exports from special economic zones (SEZs) increased by over 25% in three months ended June 2009, even as overseas sale of Indian goods remained in the negative territory during the period.
Briefing the Board of Approval (BoA) on SEZs on Tuesday, commerce secretary Rahul Khullar said between April and June this year, exports from 98 functional SEZs stood at Rs 39,410 crore.
“This is substantial, but could have been better,” Khullar told reporters after the meeting.
The BoA on Tuesday gave its in-principal approval to India’s largest solar energy-based SEZ. The 101-hectare zone will be built by Lanco Solar Pvt Ltd in Ramdaspur near Cuttak, Orissa. The developer is yet to complete land acquisition for the zone and so was given in-principle approval. There are four other solar energy-based SEZs, which had been cleared by the BoA in its earlier meetings.
The board formally approved two other SEZs which have completed land acquisition formalities. They are Brooke Bond Real Estates Pvt Ltd, Bangalore, and Karnataka State Electronics Development Corporation Ltd in Shimoga, Karnataka.
Overall merchandise exports from India in the three month period under review contracted 25.7% and stood at Rs 2,48,171 crore, as demand for goods in traditional overseas markets in the United States and Europe weakened. In fact, exports saw contraction for nine consecutive months ended June 2009.
“Over 90% of SEZ exports are from the manufacturing sector ranging from handicraft to hi-tech goods. The growth is despite the fact that none of the multi-product zones having area above 1,000 hectares have become operational,” said a commerce ministry official.
The ongoing economic slowdown has adversely impacted the development of zones as many developers have asked for more time to build their SEZs. In Tuesday’s meeting, the board allowed 25 formally approved SEZs an additional year to become operational. The zones have cited limited availability of liquidity and lesser demand for space in SEZs as reasons for slow development of the zones.
Khullar said that the commerce ministry is in discussion with other members of the board to establish a sub-committee under the BoA. It will look into procedural issues. The move will decrease the load on the BoA, and is expected to speed up clearance of SEZ-related policy bottlenecks.
The BoA also approved additional construction activities in the zones which can be started after the SEZ is notified and will not need separate permissions. These include setting up of bus bays, rail heads and fire stations.
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