The Hindu Business Line : `SEZs help TN Govt attract Rs 2,750-cr investment'

The rest of the country is debating over the long-term implications of allowing vast tracts of land for sale to private entrepreneurs to establish special economic zones. But Tamil Nadu is demonstrating that at the end of the day there are upgradation of skills, employment to women and general improvement in basic amenities, both social and physical, through these SEZs.

In a presentation here to a group of journalists from the Capital, the State Secretary to Government Industries Department, Mr Shaktikanta Das, the IT Secretary, Dr C. Chandramouli, the Special Secretary to Government, Mr K. Rajaraman, the TIDCO Chairman, Mr S. Ramasundaram, and senior officials said that the pace of frenetic economic activity currently under way in the various approved SEZs in the State particularly in and around Chennai would make the city the "Shenghzen of India" in no time.

They said that within six months Tamil Nadu had attracted Rs 2,750 crore of investment, turning it into an important investor destination.

The SEZ policy of the State stipulates that land is to be preferably barren or wasteland or unproductive or marginal land and double-cropped land should not exceed 10 per cent of the area acquired. All lands have to be privately purchased by SEZs.

The State had got 45 SEZs, out of which 19 were granted in-principle approval and 26 formal approvals. The largest segment of SEZ is in information technology at 20, followed by product-specific at 19 and multi-products at six.

whetting interests

They said that the functioning and the prospective SEZs as also the ones in the pipeline have enhanced brand equity of Chennai to attract further foreign direct investment and whetted investor interests.

They said that these zones are fostering a lot of spin-off and multiplier effects in the form of providing employment to women through imparting skills. They cited the example of an industrial unit put up in the Mahindra World City SEZ where 700 rural women are employed in the textile factory in garmenting and fabrics.

There are plans to augment industrial training institutes so that in collaboration with industry, the curriculum of engineering colleges would be upgraded and modernised in accordance with the demands of the industry for absorption of skilled people.

Senior officials did concede the need for improving the general infrastructure facilities outside these zones in order to make the scheme a successful model.

Various agencies within the State administration are coordinating action to improve the general infrastructure comfort level for investors so that the State does not present an island of beauty amid chaotic and rickety infrastructure.

They are confident that with the various SEZs going on stream in the coming years, the associated activities would generate sufficient resources for the exchequer to undertake massive public investment in the peripheral and main areas within the city to provide a comfort level to the investors. Efforts are also on to extend the concept down to other districts within the State to spread out the benefits.

Mr L. B. Singhal, Director General, Export Promotion Council for SEZs and EoUs, said that the actual implementation of SEZ in Tamil Nadu has shown that the objectives of the policies are being realised.

He said that it is imperative that both the Central and the State Government agencies work in tandem. He further said implementation of the single window clearance by the Development Commissioner in each SEZ zone and the State Government agencies would be a key to the scheme's success. Alongside, SEZ developers should work at a faster clip to extend the requisite infrastructure within the zone so that the units could focus on their core activity of exports.

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