UP officials in favour of industry-specific SEZs

UP's official circles have veered round to the view that instead of multi-product special economic zones, which require very large areas, it will be better to concentrate on industry-specific SEZs.

New SEZs are in the offing. This is particularly suited to the state, in which many centres, in fact towns, have come up and existed on the strength of one particular industry. Examples of these are Ferozabad for glass, Khurja for ceramics, Bhadoi for carpets, and over a dozen others.

"We have had success in Aligarh," says Atul Kumar Gupta, industrial production commissioner, UP.

Brass hardware and lock makers have got together to form Aligarh Industrial Parks Ltd to promote an SEZ.

The union government has given its approval and the Uttar Pradesh State Industrial Development Corporation is allocating 123 hectare of land for the park. The entrepreneurs will now be able to import the latest technology as well as machines from China and other countries.

PricewaterhouseCoopers is exploring what can be done in Kannauj, the perfumery centre since ancient times, to revive the industry. The perfumery sector in the region suffers from acute shortage of sandalwood, and a solution will have to be found for this.

Similarly, the state is toying with the idea of having two special economic zones for Meerut. The SEZs will primarily focus on sports goods and gems and jewellery, the things the city is famous for. Sports goods industry is facing a shortage of willows, used for making bats.

These were being imported from Kashmir till now, but the purchase was stopped after the latter adopted quota system. Each state prefers to sell willows only to those states which are ready to set up factories.

Therefore, the only alternative now is the English willow, the import of which will become easier if an SEZ for the related industry comes up.

However, the jewellery industry is not sure of what benefits will accrue to it in case an SEZ is formed.

Asked about the two proposed multi-product SEZs at Bhadoi and Kanpur, Gupta says Bhadoi may now have a single or a two-product SEZ for carpets and textiles.

For Kanpur, the SIDC has already acquired 1100 acres of land. The corporation may plan to build four SEZs of 250 acres each on the land.

Ernst & Young has been asked to give a report on how to select a party for promoting SEZs. Only after the report is received, will the private sector be invited to make bids.