Gujarat has potential to emerge as global manufacturing hub | INRnews
Ahmedabad, September 14, 2006 : The central government has already approved 21 special economic zones (SEZs) in Gujarat. And more companies are coming forward with proposals for such zones. With an investment of more than Rs 1 lakh crore, employment generation for lakhs for people, the SEZs are expected to become future growth engines that will propel Gujarat as a global manufacturing hub, says D Rajagopalan, Gujarat’s principal secretary for industries and mines.
Below is the Q&A session with D.Rajagopalan, posted on the Gujarat Government site.
Q. You are projecting Gujarat as the ‘SEZ Capital of India’. What are you envisioning?
A. Export-oriented units basically require port facilities. The very fact that Gujarat, with so many ports all well-connected with the hinterland, coupled with labour peace and flexible labour laws, makes it the real incubator for SEZs. Moreover, the availibility of uninterrupted power which is getting better with several imported coal-based plants coming up, would naturally attract companies.
Q. Is it a number game too? The number of SEZs approved in some other states is much more than Gujarat.
A. No, I don’t think that is the way to look at it. You may have 200 SEZs. But what is the use unless you don’t have proper port and hinterland connectivity. Moreover, where is so much of greenfield land near port sites available in any other state except Gujarat? Dahej alone, which is being proposed as a mega chemical zone, spreads over 250 sq km.
Q. How would they propel Gujarat’s economic growth?
A. SEZs is all about manufacturing. And manufacturing has always been Gujarat’s traditional strength through large number of small and medium enterprises. I strongly feel there is going be a huge surge in value-addition in manufacturing besides development of strong linkages between non SEZs and SEZ areas. I see no reason why SEZs in Gujarat can help the state emerge as a global manufacturing hub.
Q. Have you assessed the exact economic implications of SEZs on the state?
A. We have commissioned a study through a leading consultancy firm that will help us understand the exact impact of SEZs on economy. The study will be completed soon.
Q. What do you think would be the social impact of SEZs?
A. There are many SEZs proposed in relatively backward regions such as Amreli, Jamnagar and others. SEZs essentially being manufacturingoriented are going to create massive employment opportunities in these regions.
Q. What is quantum of investments expected in these SEZs?
A. The government of India has approved 21 SEZs in Gujarat till date. As per the current status, the investment through SEZs is close to Rs 1.5 lakh crore.
Q. How would the government help the development of SEZs? Are you working towards facilitating skilled manpower that is quintessential for manufacturing SEZs?
A. Gujarat was the first state to have an SEZ Act, even before the Centre. We also took a lead in making necessary amendments to our labour laws with a special consideration for companies coming up in SEZs. We have started a novel elaborate training programme. We have tied up with 10 Industrial Training Institutes (ITI) armed with latest equipment for training people for SEZs as well encouraging companies and individuals to set up such institutes taking advantage of the subsidy scheme announced by the government.
By INRnews Correspondent
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