Special economic zones secure $16 Bn investment

Special economic zones secure $16 Bn investment

Friday, 21 March 2008, 05:42 Hrs
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New Delhi: Investments of 673 billion ($16 billion) have been made in the newly notified special economic zones (SEZs), which provide jobs to 61,015 people, Minister of State for Commerce Jairam Ramesh told parliament Wednesday.

"As per studies, indirect employment is estimated to be two-three times of the direct employment," he told the Rajya Sabha, the upper house, adding out of the 439 proposals that were formally approved, 150 were for labour intensive areas.

Ramesh sought to dismiss suggestions in another query that billions of rupees in revenues were being lost because of SEZs and said there were no differences in this regard between ministries of commerce and finance.

"Apprehensions have been expressed on misuse of the scheme and relocation of existing industries into SEZs. However, experience has shown that these are ill-founded and fresh investments and employment have been flowing into the SEZs."

He gave the example of Finnish mobile equipment and handset manufacturer Nokia and said the company had its SEZ project in Sriperumbudur, which was providing employment to 6,637 people, majority of whom were women.

"The benefits derived from multiplier effect of the investments and additional economic activity in the SEZs along with the employment generation are estimated to far outweigh the revenue losses on account of tax exemptions given to SEZs."
Source: IANS
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