SEZ can export leather goods worth 4,500 crores'

Special Correspondent

Employment will be created for 25,000 people in Nellore, says Jairam
Ramesh

NEW DELHI: The Centre on Friday estimated that the proposed leather
goods special economic zone to be set up at Tada in Nellore district of
Andhra Pradesh would generate exports worth Rs. 4,500 crores over the
next five years and create employment for 25,000 people.

Stating this, Minister of State for Commerce Jairam Ramesh said that
Tata Housing Development Corporation would spend Rs. 100 crores to
develop infrastructure for the SEZ to be set up over 600 acres of land
and the work should commence within three months of the land being
handed over to it.

Training subsidy

The Minister, who is a Rajya Sabha MP from the State, said he has taken
personal interest in ensuring that the SEZ comes to the State.

Explaining the employment potential, he said the State Government has
already agreed to provide Rs. 1,000 training subsidy for 5,000 persons
per year.

This subsidy would be provided over the next five years and through this
25,000 persons would be trained. Over 70 per cent of the people employed
in the trade were women.

"We don't want call centres set up like Chandrababu Naidu where people
from outside were employed. We want to create employment potential in
the region," he said. The Ministry envisaged that Indian leather goods
exports, which at present stood at US $ 2.4 billion would grow to $ 7
billion by 2010.

Mr. Ramesh said already two well-known leather goods manufacturers,
India footwear and A.V. Thomas, have agreed to invest in the area and
companies from Taiwan and Korea have also shown interest.

"With the European Union imposing anti-dumping duties on China (16.5 per
cent) and Vietnam (10.2 per cent), for two years, there is a window of
opportunity for Indian products," he said at a press conference.

At present 63 per cent of exports of Indian footwear is to EU but it
largely consists of men's shoes.

http://www.hindu.com/2006/10/14/stories/2006101415560300.htm