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SEZs to miss export target by Rs 20k crore
By siliconindia
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Tuesday, 13 January 2009, 19:50 IST |
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Ahmedabad: The special economic zones (SEZs) are expected to miss their export target by Rs 20,000 crore from its expected projection of 
120,000 crore, according to a central government official. The global economic slowdown has been key in influencing the slump in projections, with a decrease in demand from key overseas markets.
This year, one-third share of the total exports from SEZs in the country will be from Gujarat. "30 percent of the total exports will happen from SEZs. However due to the slowdown, this year exports are expected to be about Rs 1,00,000 crore, a significant shortfall considering the earlier industry projections of about Rs 1,20,000 crore," R Gopalan, Additional Secretary, Union Commerce Ministry told the Economic Times.
Stressing on the need for SEZs to shift their focus from the U.S. and European markets to other lesser-affected markets, Gopalan felt that this would enable them to sell their produce.
"Gujarat is one of the leading states in establishing SEZs. About eight percent of the notified SEZs and 10 percent of the functional SEZs are also in the state. This year, 30 percent of the total exports happening from SEZs will be from Gujarat", Gopalan remarked about Gujarat's SEZ potential.
"Of the 300-odd SEZs set up on about 120,000 hectares, 78 percent of them are on barren land, 19 percent are on land yielding single-crop, while the remaining three percent are on double-crop land," Gopalan said dismissing the notion that SEZs were "land guzzlers".
L B Singhal, Director General, EPC for EOUs and SEZs said that the SEZs has brought in Rs 90,000 crore of investments and created over two lakh jobs in the last two and-a-half years. Singhal also felt that the ambiguity surrounding SEZs being an infrastructure or a real-estate project should be cleared in the SEZ Act and demanded Gujarat to empower the SEZ development commissioners to issue I-forms (meant for availing CST exemption) which are currently being issued by the local sales tax office.
120,000 crore, according to a central government official. The global economic slowdown has been key in influencing the slump in projections, with a decrease in demand from key overseas markets.
This year, one-third share of the total exports from SEZs in the country will be from Gujarat. "30 percent of the total exports will happen from SEZs. However due to the slowdown, this year exports are expected to be about Rs 1,00,000 crore, a significant shortfall considering the earlier industry projections of about Rs 1,20,000 crore," R Gopalan, Additional Secretary, Union Commerce Ministry told the Economic Times.
Stressing on the need for SEZs to shift their focus from the U.S. and European markets to other lesser-affected markets, Gopalan felt that this would enable them to sell their produce.
"Gujarat is one of the leading states in establishing SEZs. About eight percent of the notified SEZs and 10 percent of the functional SEZs are also in the state. This year, 30 percent of the total exports happening from SEZs will be from Gujarat", Gopalan remarked about Gujarat's SEZ potential.
"Of the 300-odd SEZs set up on about 120,000 hectares, 78 percent of them are on barren land, 19 percent are on land yielding single-crop, while the remaining three percent are on double-crop land," Gopalan said dismissing the notion that SEZs were "land guzzlers".
L B Singhal, Director General, EPC for EOUs and SEZs said that the SEZs has brought in Rs 90,000 crore of investments and created over two lakh jobs in the last two and-a-half years. Singhal also felt that the ambiguity surrounding SEZs being an infrastructure or a real-estate project should be cleared in the SEZ Act and demanded Gujarat to empower the SEZ development commissioners to issue I-forms (meant for availing CST exemption) which are currently being issued by the local sales tax office.