Breather for meltdown-hit Special Economic Zones

According to the Union Ministry of Commerce and Industry,this is being done to counter the global slowdown as well as retain employment in these industrial zones across the country.

The move is set to aid Gujarat immensely,as the state is home to 10 per cent of the total SEZs in India. There are 87 operational SEZs across the country,employing 3,62,650 people directly,but the global meltdown has forced them to layoff workers in large numbers.

“To ensure stability of the SEZs and retain jobs,some fiscal incentives are being planned for selling in the domestic market. These are interim measures to contain job losses,” said R Gopalan,Additional Secretary,Union Ministry of Commerce and Industry,on Sunday. He was speaking at the ASSOCHAM SEZ conclave held ahead of the Vibrant Gujarat Investors’ Summit 2009. “There are other measures such as guiding the units for newer markets apart from USA and Europe,” said Gopalan.

The commerce ministry had expected exports from the zones to the tune of nearly Rs 1,25,950 crore in 2008-09. But as per predictions,the revised export figures have come down to Rs 1,00,000 crore. “SEZs are not immune to slowdown. Therefore,we will be providing duty benefits on raw materials,” said Lalit Singhal,Director General,Export Promotion Council for Export Oriented Units and SEZs.

The ministry is now pinning hopes on domestic demand. “We expect domestic demand to increase by 7 per cent in 2008-2009,in which case we will be able to contain jobs in 2009-10,” Gopalan added.

In the last two-and-a-half years,a total investment of Rs 90,000 crore was made in 87 SEZs,employing nearly 2,20,000 people in the country. Total exports from these SEZs was Rs 66,000. crore.