4 SEZs in UP in the offing

The UP State Industrial Development Corporation (UPSIDC) is planning to establish four special economic zones in the state.

All of them will be product-specific because the land required for multi-product or general SEZs is enormous (of 2,500 acres), and is not easily available.

Managing Director Chanchal Tewary told Business Standard: "We have gone in for product-specific special economic zones, which require only 250 acres."

In this manner it has made an effort to salvage some of the earlier planned SEZs for which permission had been obtained.

But after the changes in the law and the consequent requirement that they got accepted all over again, it appeared at these would be dropped. However, the SIDC is trying to get them accepted.

Of these four, three are proposed to be located in Kanpur. They are in leather, light engineering, and hosiery. And the one in Bhadoi will be for handicrafts and carpets, etc. On asked about industry's reaction to this proposal, Tewary said no demand survey had been done yet. But he said in all these products exports were taking place and once a zone was there, exports were likely to go up quickly.

He said Kanpur's leather export was on the upswing and it was likely exporters would take up space in the zone. The export of leather goods is close to Rs 2,000 crore.

Although hosiery export is marginal at Rs 15-20 crore, it is likely to show a very smart rise once the facilities for export are created.

Similarly, says Tewary, there are small engineering units in the city taking up export and many are in the auto-component sector. He estimates light engineering export to be Rs 250 crore and is rising.

Bhadoi export of carpets is worth about Rs 1,000 crore.

The SIDC proposals are pending with the Union ministry of commerce. Each is likely to cost Rs 250-300 crore.