SEZs help TN Govt attract Rs 2,750-cr investment'

G. Srinivasan

Will turn Chennai `Shenghzen of India'

Chennai , Nov. 20

The rest of the country is debating over the long-term implications of
allowing vast tracts of land for sale to private entrepreneurs to
establish special economic zones. But Tamil Nadu is demonstrating that
at the end of the day there are upgradation of skills, employment to
women and general improvement in basic amenities, both social and
physical, through these SEZs.

In a presentation here to a group of journalists from the Capital, the
State Secretary to Government Industries Department, Mr Shaktikanta Das,
the IT Secretary, Dr C. Chandramouli, the Special Secretary to
Government, Mr K. Rajaraman, the TIDCO Chairman, Mr S. Ramasundaram, and
senior officials said that the pace of frenetic economic activity
currently under way in the various approved SEZs in the State
particularly in and around Chennai would make the city the "Shenghzen of
India" in no time.

They said that within six months Tamil Nadu had attracted Rs 2,750 crore
of investment, turning it into an important investor destination.

The SEZ policy of the State stipulates that land is to be preferably
barren or wasteland or unproductive or marginal land and double-cropped
land should not exceed 10 per cent of the area acquired. All lands have
to be privately purchased by SEZs.

The State had got 45 SEZs, out of which 19 were granted in-principle
approval and 26 formal approvals. The largest segment of SEZ is in
information technology at 20, followed by product-specific at 19 and
multi-products at six.

whetting interests

They said that the functioning and the prospective SEZs as also the ones
in the pipeline have enhanced brand equity of Chennai to attract further
foreign direct investment and whetted investor interests.

They said that these zones are fostering a lot of spin-off and
multiplier effects in the form of providing employment to women through
imparting skills. They cited the example of an industrial unit put up in
the Mahindra World City SEZ where 700 rural women are employed in the
textile factory in garmenting and fabrics.

There are plans to augment industrial training institutes so that in
collaboration with industry, the curriculum of engineering colleges
would be upgraded and modernised in accordance with the demands of the
industry for absorption of skilled people.

Senior officials did concede the need for improving the general
infrastructure facilities outside these zones in order to make the
scheme a successful model.

Various agencies within the State administration are coordinating action
to improve the general infrastructure comfort level for investors so
that the State does not present an island of beauty amid chaotic and
rickety infrastructure.

They are confident that with the various SEZs going on stream in the
coming years, the associated activities would generate sufficient
resources for the exchequer to undertake massive public investment in
the peripheral and main areas within the city to provide a comfort level
to the investors. Efforts are also on to extend the concept down to
other districts within the State to spread out the benefits.

Mr L. B. Singhal, Director General, Export Promotion Council for SEZs
and EoUs, said that the actual implementation of SEZ in Tamil Nadu has
shown that the objectives of the policies are being realised.

He said that it is imperative that both the Central and the State
Government agencies work in tandem. He further said implementation of
the single window clearance by the Development Commissioner in each SEZ
zone and the State Government agencies would be a key to the scheme's
success. Alongside, SEZ developers should work at a faster clip to
extend the requisite infrastructure within the zone so that the units
could focus on their core activity of exports.
http://www.thehindubusinessline.com/2006/11/21/stories/2006112100701900.htm