INRnews - Indian Real Estate News

‘‘The State has a number of ports. SEZs can import and export products on a large scale. It’s ideal to set up a special zone for manufacturing as it will help Gujarat get greater investment from manufacturing sector in the country and outside as the State provides good infrastructure,’’ says G I Desai, Deputy Commissioner (Industry). SEZs will usher in a new era of industrial revolution in the State, he adds.

Prominent groups have received approval to set up SEZs in Gujarat, including Reliance Industries Ltd with an investment of Rs 400 billion, Essar with Rs 110 billion, Adani Rs 100 billion and Gujarat Hira Bourse with an investment of Rs 40 billion. The SEZs will come in places like Ahmedabad, Dahej, Kutch, Vadodara and Navsari.

Explaining why the State is a good choice to set up SEZs, Industry Commissioner Arvind Agarwal says, ‘‘Amending the Industrial Disputes Act with the Centre’s permission in February 2004, the State has made it more flexible for employers. The companies have the freedom to appoint and retrench labour, besides offering better wages. At the same time, the environment is financially advantageous for the labourer as well. It’s a win-win situation.’’

Several SEZs for petrochemicals, jewellery, pharmaceuticals, chemicals, engineering as well as automobiles will turn operational in the next three years. The first phase of ‘Pharmez,’ being set up by Zydus Cadilla over 12 hectares near Ahmedabad, is likely to be completed by mid-2007. It’s likely to attract Rs 1,000 crore in investments.

‘‘Exports from the SEZ are pegged at Rs 2,000 crore in the first phase. It will provide direct employment to 1,000 people and indirect employment to 5,000,’’ says Pankaj R Patel, Managing Director of Zydus Cadilla. Pharmez has been conceptualised and modelled on the lines of internationally reputed pharma parks and Free Trade Zones with facilities like a business centre, Wi-Max and broad band connectivity, planned layout with landscaped open spaces, restaurant and other recreational facilities like yoga and meditation centre. It will also contain offices of SEZ Commissioner, Customs & Excise Commissioner and FDA.

A unique aspect of Pharmez will be a museum on the evolution of pharmaceutical science. ‘‘This will be the biggest and the longest museum in Asia spread over an area of 5,00,000 sq ft providing a complete perspective on drug-making process,’’ says Patel.

The SEZs are being set up by the government either wholly or with private sector participation. Generally, the government provides land to private companies that develop SEZs. Deputy Commissioner (Industry) G I Desai, however, refuses to reveal the combined export potential of upcoming SEZs or how it will benefit the State’s economy. ‘‘Combined exports of Kandla and Surat — the two SEZs that are operational at the moment — have shown substantial increase. But it’s too premature to say anything about the others as they are not fully functional,’’ he says. So far, the Centre has cleared nearly 150 SEZs across the country.