A specialist in special economic zone

CAPTAINSPEAK

is now the development commissioner of the Kandla Special Economic Zone (KAEZ).

A mechanical engineer with a post graduate degree in management from IIM, Bangalore, Garg has earlier been posted in the anti-smuggling cell of the Customs at Ratnagiri in Maharashtra and the central excise department, Pune, in the revenue intelligence department.

Garg is connected with KASEZ since 2000. Talking to Business Standard, Garg listed down the expansion plans for the special economic zone.

KASEZ has embarked on an expansion plan. What are the features of the plan?
To begin with, Kandla Port Trust, with the approval of the Union ministry of surface transport, had handed over an additional 300 acres of land to KASEZ.

With a new allotment policy being implemented, our per acre turnover from the constructed area will increase by Rs 10 crore per annum. The boundary wall for the newly allotted land has already been constructed and allotment will begin by next year.

How will that improve earnings of the special economic zone?
By the time construction is complete and exports begin, it will be about two or three years. But KASEZ aims to at least double its export earnings within the next two or three years.

With this acquisition, KASEZ retains and strengthens its position as the largest operational SEZ in the country with 920 acres of industrial area. The existing area of the zone is almost saturated and KASEZ was finding it difficult to allot land to larger units.

What has the performance been like in the past couple of years?
Our export earnings grew to Rs 807 crore in the past fiscal year, 52 per cent higher than the previous year, when export earnings stood at Rs 552 crore. We are almost through with this current year and target export earnings of over 1000 crore, with an average growth of 25 per cent.

The Union government has set an export earning target of Rs 1,020 crore for KASEZ, and we have already achieved close to Rs 600 crore by the end of November this year.

More area would mean more units could operate from KASEZ.
There are at present 130 units operational in the zone, manufacturing a wide range of products. Over a dozen have been set up in the current year alone, while 58 are in various stages of completion.

Of these 58, construction work has been initiated by 29 companies. Some new products that are being introduced include instant food items, handicrafts, agricultural products, processing of minerals, fabrication of tanks, stainless steel wires, blankets, medical equipment, clocks and home appliances.

The export potential of these units under implementation is Rs 769 crore and fresh investment of Rs 32 crore is being made in these units.

How are things being made simpler for entrepreneurs to operate in the SEZ?
The very purpose of converting from Kandla Free Trade Zone (KFTZ) to KASEZ was to make procedures simpler for industrialists. Now, multiple activities can be done through a single permit.

Also, if a permitting authority does not react to a permit within seven days of submission, it is treated as sanctioned. Also, we have simplified customs clearance mechanism to a great extent by introducing the self-declaration system.