The Gujarat Industrial Development Corporation (GIDC) wants to reduce the size of its handicrafts and artisan Special Economic Zone (SEZ) in Kutch from 131 hectares to 15 hectares. The state government run corporation has already approached Board of Approvals (BoA) set up by Centre government to study SEZ proposals, seeking reduction in the area.
In addition to this, the state industry agency has also asked for a change in sector of the SEZ from ‘Handicrafts and Artisan’ to just ‘Handicraft’. The GIDC proposal will be taken up for discussion in the next meeting of BoA scheduled to be held on September 16, 2010.
Initially, a formal approval was granted to Gujarat Growth Centres Development Corporation Limited (GGCDCL), a special purpose vehicle of GIDC, to set up a sector specific SEZ for handicraft at village Moti Chirai in Kutch district of the state over 131 hectares in June 2007. However, the SEZ is yet to be notified.
Instead of GGCDCL, GIDC has now decided to develop the SEZ itself and has, therefore, requested the Board of Approval for a transfer of the formal approval in its name. GIDC has informed the government that a 131 hectare SEZ will not be viable for artisan and handicraft sector. Hence the state industry wing has decided to set up an SEZ over 15 hectares at the same location for the 'Handicraft' sector.
A top government official had earlier in July said, “There is a good demand for carved furniture from Gulf, so we decided to set up a SEZ for handicrafts, where value addition to imported timber here can be done”. The location is near the proposed timber-based industrial park, by the state government on 106 hectares of land.
GIDC officials could not be contacted for their comment. It may be mentioned here that GIIDC had also sought permission of BoA earlier to change the status of its Apparel SEZ in Ahmedabad. GIDC wanted to change the status from apparel to textiles and articles of textiles. GIIDC had contended that the SEZ was disadvantageously placed as compared to the domestic tariff area (DTA) units.
