Surat SEZ on expansion spree, MNCs show interest

Surat Special Economic Zone (SurSEZ) is set for an expansion soon as various multinationals are planning to set up operations here.

"Till now, at least eight MNCs have approached us and expressed their intention to set up 100 per cent export-oriented-units (EOUs) at SurSEZ," said Naresh Sharma, developer of SurSEZ and additional chief executive of Diamond and Gem Developing Corporation Ltd (DGDC).

In 2005-06, total exports of SurSEZ-based industrial units was at Rs 2,300 crore. "There is a huge demand from MNCs to set up EOUs in SurSEZ due to the area recording high exports growth for several years now," said Sharma.

SurSEZ is spread over 295 acres, of which only 170 acres have been developed. Currently, 116 units are functional and nearly 20 units are under construction. About 90-95 per cent of the land has been allotted and occupied by the units.

While MNCs have sought big area (10,000-25,000 sq mt size) for allotment, the SEZ has only 10-15 vacant plots of 1,000 sq mt available now. So far, two American, four European and one South African firms have expressed intention to set up 100 per cent EOU units in the SEZ.

"As the existing land in SurSEZ is not enough to accommodate MNCs' demand for large plots, we have to undertake an expansion of the SurSEZ area," said Sharma, putting expansion at 125 acre. "We expect to receive permission by August end," he added.

DGDC is the authorised developer of SurSEZ and it expects to get the required permission for extension from the commerce ministry. It will be spending approximately Rs 35 crore on the extension of SurSEZ. SurSEZ will also have a 10 mw captive power plant to be set up in a year.