Investigation on Special Economic Zone

Goals

• To find the potential of SEZ in Nasik

• To find how many units would be willing to invest in SEZ in Nasik

• To find the area they might be willing to buy

target industries

The potential of high-growth and nascent industries such as IT, Biotech, Pharmaceuticals, Food Processing was specifically investigated, mainly due to their growth prospects and availability and manpower, proximity to Mumbai and Pune. In addition, the scope of the following industries was investigated: food and beverages, tobacco products, wood products, leather products, clothing, paper products, rubber products, plastic products, petroleum products, fertilizers, Specialty Chemicals, Petrochemicals, Pharmaceutical Formulations, Cement, Steel, Aluminum Conversions, Copper, Machine Tools, Electrical Equipment, Industrial Machinery, Electronic & Telecom Equipment, Semiconductors, Refurbished Automotive Units & Components, Trading & Brokerage, BPO, financial services, bioinformatics.

Scope of the investigation

247 industries were surveyed in Mumbai, Pune and Nasik

Data Collection Mode

Interviews were conducted in the form of questionnaires, discussions. References from various publications, business magazines, newspapers, and the Internet were also used to collect data.

Investigation duration

5 months

Key contents of the report

• Introduction to the Special Economic Zone

• ZEE policies

• Indian economy and SEZ

• SEZ success stories in other countries

• Export policies and industry development

• Analysis by industry

• Restrictions

• Recommendations

ABOUT SPECIAL ECONOMIC ZONE

The SEZ framework is a policy instrument of the Government of India designed to liberalize the country’s business and investment environment in a number of pre-defined geographic areas. While the SEZ policy is one of the government’s programs to promote exports, it clearly breaks new ground. It is the most visionary, ambitious and far-reaching initiative of the Indian government to fundamentally transform the country’s foreign direct investment landscape.

What is special about the SEZ?

As with China, India also envisioned the SEZ as a special physical enclave designed to promote foreign investment in a wide range of economic activities, from manufacturing at one end to trade and financial services at others, in order to ensure that these investments operate in an unrestricted business environment. SEZ is seen as both a vehicle for increasing FDI flows and a boost for exports. The SEZs allow India to experiment with radical reform over a large enough geographical area but in a localized way without the difficulty of introducing such reforms at the national level. The SEZ policy is special in many ways a. The range of permitted activities is wide, covering commercial reconditioning, labeling, packaging, etc. Under the union government policy announced in April 2000, companies will operate under a high-quality red carpet, the SEZ will provide high-quality, world-class infrastructure designed to make production, delivery logistics, and transaction costs competitive to world level. The size of the SEZ would be large enough to attract private participation in infrastructure construction, while the SEZ would be insulated from the national tariff area from negative influences.

Key arguments for SEZ

1. Special economic zones should acquire mainly vacant and barren land and, if necessary, monoculture agricultural land. If a portion of double-crop agricultural land must necessarily be acquired to meet the minimum area requirements, it must not exceed 10 percent of the total land.

2. In the first phase, it is proposed to allow only a maximum of 25 percent of the approved homes, while the rest of the approved infrastructure will be allowed to be created according to the developer’s plans and as approved in the Master Plan. The approval committee will be allowed to establish the break-even housing in three phases depending on the progress in the allocation/occupancy of the units in the processing area.

Key arguments against SEZs

1. Companies will simply move to the SEZs. Special provisions have been made to take advantage of tax advantages in the law under which tax exemptions are offered and little net activity will be applied only if the unit is not generated.

2. The law will lead to a large-scale land: land requirement of all special economic zones, acquisition by developers, displacement (including those under consideration) of farmers, meager compensation and is of 1,00,000 hectares, which is less without alternative livelihoods for them.

SUMMARY OF RECOMMENDATIONS

1. Based on various parameters such as labor availability, distance between key cities, raw material, willingness to consider SEZ in Nasik, it was found that industries such as food and beverage, biotech, pharmaceuticals, engineering are among the right industries and enthusiasts. to settle in Nasik SEZ. As a result, there is a defined scope for establishing an SEZ in Nasik.

2. The acreage that companies are willing to purchase is 10 to 100 acres depending on availability and rates

THANK YOU!

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