Ahead of Global Investors Meet next month, P. Arul checks the functioning of SEZ across Tamil Nadu
With the world's largest contract electronic manufacturer Foxconn exploring options to convert a 300-acre land it owns in Sriperumbudur to a domestic tariff area, the investment scenario seems to be picking up in the state ahead of Global Investors
With the world’s largest contract electronic manufacturer Foxconn exploring options to convert a 300-acre land it owns in Sriperumbudur to a domestic tariff area, the investment scenario seems to be picking up in the state ahead of Global Investors Meet next month.
Though this land is different from the facility Foxconn has in the Nokia SEZ environment, a senior state government official confirmed that discussions are on possibilities of setting up a manufacturing facility in the state. Government officials had met the Foxconn team in Taiwan when they visited the country in connection with GIM. Talks started almost a month back. “As of now everything is oral and we don’t have anything in writing. The state government has said that the labour situation in Tamil Nadu is peaceful and there are around 4,000 foreign companies operating in the state without any problem,” the government official said.
It may be recalled that Foxconn, which shut its doors in Sriperumbudur, in February this year following the exit of cellphone major Nokia, would be moving to Sri City in neighbouring Andhra Pradesh soon.
However, experts say Tamil Nadu has the best geographical and strategic advantages for effective functioning of SEZs. . The vast untapped and arid landscape in the state would be suitable for SEZs including local specific ones. If these advantages are tapped effectively, Tamil Nadu could become a leading industrialised state in the country soon.
In five to 10 years, Thoothukudi, Madurai and Tirunelveli corridor and Ponneri near Chennai would become a leading industrial hub in Tamil Nadu. Already cost of land has been escalating steadily. AMRL SEZ, Nanguneri, Pearl City CCCL, Thoothukudi, Elcot Ilanthakulam-SEZ near Madurai, IG 3 Infra Ltd in Uthukuli and L&T ship building SEZ, Kattupalli near Ponneri have been set up in the region.
But the optimism comes with a rider. For effective operation of SEZs, the first demand raised by many is a liason office within the SEZ itself and the speeding up of the single window clearance system for all the process. This would instill confidence among exporters and units producing goods for domestic trade. This would also reduce the interface between authorities and units.
Industries minister P. Thangamani said, “We are on the track towards the goal fixed by our Chief Minister and to compete with other states we have established a better single window system equipped with liaisoning officers. Sector based experts have been roped in for the global investors meet and the industry department officials are monitoring the offers provided by the neighbouring states”.
Talking about the significance of units operating at Sri City SEZ, Seema Nehra, director, Pals Plush India Private Ltd, (a Chinese based company), said, “We have been in Sri City since January 2012, and it has been a wonderful experience to be located in the SEZ. The world class infrastructure and the profile of the other units in Sri City SEZ has been a convincing factor to draw the attention of the international buyers to consider India as a reliable source of supply.”
Anil K. Choudhary, development commissioner, Sri City SEZ (Multi Product), Union commerce ministry, said, “Currently, good per cent of SEZs in the country are IT and IT-related ones. Efforts must be made to encourage SEZs specialized in manufacturing and agro based products” in view of the “Make in India” mission of PM Narendra Modi.
( Source : deccan chronicle )
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