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Slump in MEPZ exports

Raja Simhan T.E.

Bharat Kumar

CHENNAI, Feb. 25

EXPORTS from the Madras Export Processing Zone (MEPZ) have come down by about Rs. 12 crores, to Rs. 436 crores, for the 10-month period ending January 2000, compared to the same period last year. Textiles and electronics, including software and hardware, have contributed to the slump.

Textiles (garments and made-ups, knitted garments and fabrics) exports during the 10-month period ending January 2000 fell by around Rs. 20 crores, to Rs. 137 crores. Similarly, export of electronics products fell by about Rs. 15 crores, to Rs. 104.20 cr ores.

The total export target for the MEPZ for the year ending March 2000 was Rs. 720 crores. But, due to the overall poor export performance, the target has been revised to Rs. 680 crores.

According to Mr. V. Venkatachalam, Development Commissioner, MEPZ, ``We have done about Rs. 470 crores till now. We do not expect to reach even the revised target. We expected the software export to double during this financial year. However, this did no t happen, which in turn resulted to the overall drop in the MEPZ's performance,'' he said.

Hence, the MEPZ has drawn up plans to attract more software companies to enhance export performance. It has recently got an in-principle approval from Department of Telecommunications (DoT) to set up a dedicated telephone exchange with optic fibre cable technology. Expected to be up and running in about a year from now, the infrastructure is to act as an incentive for prospective clients of the MEPZ.

Other sectors have performed comparatively well. There was an increase in export of engineering products, chemical and allied products, leather goods, and gem and jewellery during the 10-month period ending January 2000, as against the corresponding peri od last year.

Export of the engineering products went up by over Rs. 5 crores, to Rs. 67.01 crores (Rs. 61.54 crores), chemical and allied products by around Rs. 10 crores, to Rs. 44.76 crores (Rs. 34.85 crores). Leather good exports went up by over Rs. 4 crores, to R s. 38.01 crores (Rs. 33.95 crores).

Similarly, export of gem & jewellery more than doubled during April-January of 1999-2000 to Rs. 11.48 crores (Rs. 4.99 crores).

The software firm Complete Business Solutions (India) Pvt Ltd (CBSI), continued to be the top earner for the second time in a row for the MEPZ, with exports worth Rs. 66.53 crores during April-January 2000. However, even for CBSI, exports slumped from Rs . 82 crores for the same period in the previous year.

Of the 30 acres stuck with defaulters, the zone has managed to get back about five acres from defunct companies so that the area may be leased to fresh companies. According to Mr. Venkatachalam, ``we typically try to find buyers for the assets of defunct companies who cannot meet export obligations. If that is not possible, we are forced to serve eviction notices.''