Govt unveils spl economic investment regions plan

HANNOVER FAIR

The government is working on a plan to set up special economic and investment regions in six states. These regions, possibly of the size of 200-250 km, will have a world-class infrastructure set up by the concerned states and the central government.

The concept is based on such regions in China, the US and the Netherlands and is being discussed at the inter-ministerial level before it is finalised.

The proposal comes barely two months after India enacted the SEZ Act in February this year. These regions will contain many SEZs, industrial parks, projects and factories and essentially link all of these into one massive industrial region.

Ajay Dua, secretary, department of industrial policy and promotion, outlined the concept at the Indo-German Infrastructure Dialogue, which was held here after a gap of four years. The plan, which seeks to mirror the success of similar regions that have been set up in Pudong in China, Houston in the US and Rotterdam in the Netherlands, caught the attention of those gathered at the session.

Speaking to reporters later, Dua stressed the proposal was at a conceptual stage. "We wish to delineate such areas, create an infrastructure master plan, put the required utilities in place and then see it act as a magnet for investments and projects. The concept is linked to the need for $150 billion investments in India's infrastructure. It flows from the recommendations of the NRI group, led by ex-Citibank CEO Victor Menezes. In order to get the investments, we will have to focus and choose specific areas that will contain the best infrastructure," he said.

Dua added that these special economic regions could have a mother industry around which a cluster of ancillary companies would cluster.

"The difference between these regions and special economic zones would be that while infrastructure development in a SEZ is the responsibility of the developer, in a special economic investment region such development would be the responsibility of the state and central government," he said.

Dua highlighted another potential benefit of such regions. "This will not need a law, but can be done as a policy measure. While no separate incentives will be provided, state governments could provide flexibility in terms of labour laws."

Task force studies proposals for Petrochem investment regions

A task force, headed by the prime minister's principal secretary, is already discussing six proposals for setting up petrochemicals and petroleum investment regions.

Six states have made presentations seeking such regions. Their locations are Haldia in West Bengal, Vizag in Andhra Pradesh, Dahej in Gujarat, Ratnagiri in Maharashtra, Mangalore in Karnataka and the Kundli-Panipat belt in Haryana.

This proposal is at an advanced stage and may soon be taken to the Cabinet. The task force includes secretaries in the ministries of petroleum, chemicals, commerce, finance and chief secretaries of various states.