The country's exports from its Special Economic Zones (SEZs) registered a robust 43 per cent growth in the fiscal 2010-11 at Rs 3,15,867.85 crore, against Rs 2,20,711.39 crore in the previous year, even as the overall export growth was 32.3 per cent in rupee terms.
In a statement issued here, the Export Promotion Council for Export-Oriented Units (EOUs) & SEZs (EPCES) Chairman, Mr Jatin R. Mehta, said the Council was encouraged by the sound performance of its members despite a difficult international economic milieu.
He said the members have been dismayed over new constraints such as the imposition of minimum alternate tax (MAT) and Dividend Distribution Tax (DDT) introduced in the 2011-12 Budget. He said that even as the Finance Bill 2011 retained these harsh provisions, the Council would be making its best efforts for withdrawal of MAT/DDT.
He said as on May 11, 2011 378 notified SEZs were functioning across the country out of the 582 approved SEZs so far.
There was a huge rush to set up SEZs across the country after the concept got concretised once the SEZ Act came into being in February 2006.
He said that at the end of March 31, 2011 as many as 133 SEZs are operational out of which 17 are multi-product SEZs and the remaining include mostly IT/ITeS SEZs, engineering, electronic hardware, textiles, biotechnology, gem and jewellery and other sector specific SEZs.
Encouraged by the consistently good show put up by the country's SEZs, the Council's Deputy Director General, Mr O.P. Kapoor, said the Minister of State for Commerce and Industry, Mr Jyotiraditya M. Scindia, would present EPCES export awards to EOUs and SEZs units for outstanding performance in the year 2008-09 to 48 operational SEZs on Wednesday here.
Some of the awardees include Nokia India Pvt Ltd (Rs 10,317 crore), Rajesh Exports Ltd (Rs 10,453 crore), Sulzon Wind Corpn. Ltd (Rs 1,554 crore), Su-Raj Diamonds & Jewellery Ltd (Rs 1,230 crore), Jindal Saw Ltd (Rs 1,520 crore), Moser Baer India Ltd (Rs 1,316 crore), Hindustan Zinc Ltd (Rs 1,315 crore) and Infosys Ltd (Rs 1123 crore), he said.
Meanwhile, in its latest monograph, Dun & Bradstreet Information Services India Pvt. Ltd has voiced concern that SEZs might be losing their sheen they have turned out to be financially challenging ventures for investors mainly on account of escalating costs, rising interest rates and limited access to finance.
In order to leverage the large pool of skilled workforce, a strong manufacturing base and strong potential to capture increased pie in global trade, it said the Government should play “a more pro-active role in promoting SEZs”.
The Government, it said, should do the “balancing act by providing the necessary support for land acquisition, speedy administration and approvals and also ensuring that the interests of the locals are protected”.