We will develop SEZ in our own way: Chidambaram

Posted online: Friday, March 30, 2007 at 0000 hours IST

SHENZHEN (CHINA), MAR 29 : Amid controversies over the setting up of
China-style Special Economic Zones (SEZ), India on Thursday said the
government recognised SEZs as an important tool in furthering
industrialisation but will implement the concept in its "own way".
"We recognise that SEZs are a useful tool for industrial development,
especially in areas where infrastructure is lacking. Where
infrastructure already exist, it is perhaps not necessary to create
SEZs," India's finance minister P Chidambaram said after inaugurating
the first full-fledged branch of Bank of India here.

The one-time fishing village of Shenzhen is the first the SEZ in China.
It was China's first major experiment with capitalism after late Chinese
paramount leader Deng Xiaoping landmark visit to the southern Guangdong
province in 1986. The Shenzhen SEZ was originally established in 1979
due to its proximity to Hong Kong, then a prosperous British colony. The
SEZ was created to be an experimental ground of capitalism in "socialism
with Chinese characteristics".

Chidambaram noted that Chinese businesses were already routing 300
million US dollars worth of business through BOI in countries like
Singapore and expressed confidence that with the establishment of a
full-fledged bank in Shenzhen, Chinese businesses would opt to deal with
Indian banks for their requirements in India.

Indian ambassador to China, Nirupama Rao noted that BOI is the only
Indian bank to have two offices in China -- Shenzhen and in Beijing,
where it has a Representative Office. Pointing out that India will soon
open a second Consulate General in Guangzhou, capital of the southern
Guangdong Province, she hoped that cities like Shenzhen would play a
greater role in fostering stronger bilateral trade between India and China.

BOI chairman andMD M Balachandran said it was a privilege for the bank
to commence operations in Shenzhen and contribute to enhanced bilateral
trade and economic cooperation.

http://www.financialexpress.com/fe_full_story.php?content_id=159459