Export zones eye record revenues

Export from special economic zones (SEZ) and export oriented units (EOUs) is expected to cross Rs 50,000 crore mark this fiscal even as manufacturers claimed the sops offered by the Centre were not enough to create a level playing field with their counterpart in China and other neighbouring countries.

Export from SEZs and EOU touched about Rs 41,000 crore in the last fiscal following growth of 35 per cent over previous year. While SEZ export was at Rs 14,000 crore, export from EOUs crossed Rs 27,000 crore.

"We are optimistic of touching $ 20 billion by 2010 from the present level of $ 9.19 billion," L B Singhal, director general, Export Promotion Council for EOUs and SEZs, said.

However, units working at SEZs claimed much could be done by framing new policies to make them competitive not only with SEZs in Bangladesh, Sri Lanka, China but also from units working in the domestic tariff area (DTA).

"We should be allowed to sale our product in DTA by paying the duty forgone on input and not the full custom duty. This is crucial for growth of SEZs and attracting foreign direct investment there as none want to miss out the vast domestic market," Pradeep Chopra, regional chairman, EPCES, Falta SEZ, said at an open house meet in Kolkata.

Chopra pointed that dollar transaction should be stopped for supplying input from DTA to SEZ to reduce transaction cost.

G K Pillai, additional secretary, Union ministry of commerce, who was present at the meet, noted the observations would be taken into accounting the new SEZ policy which was being formulated.

He expressed hope that it would be placed soon before the Cabinet 'as soon as possible'.

Speaking on the broader issue of Exim Policy, Pillai noted it would focus on maximising employment, agriculture sector and reduction in transaction cost of exports.

"The thrust of new exim policy, which is under formulation and will be announced next month, will be on maximising employment, concentration on industries like gems and jewelleries, textiles, leather, handloom, agriculture and agriculture processing," Pillai added.