Surat apparel park to become a special economic zone

The ambitious Apparel Park, a joint project of the Union textiles ministry and the Gujarat government, coming up in the 56.64 hectares of land near Surat is being converted into a special economic zone (SEZ).

The Apparel Park, coming up at Sachin-Vaanz, about 15 kms south of Surat city, is expected to be completed by March next.

"We have decided to convert the Apparel Park into an SEZ and a formal announcement in this regard is likely to be made when the park becomes fully operational," state industries minister Anil Patel and industries commissioner Amarjeet Singh said in Surat on Monday.

They were in Surat to give a briefing about the accomplishments of the Gujarat government in the past one year on the industrial front.

As many as 36 application forms have been disbursed for setting up units in the park and of these, two applicants have already started work on their units.

One of the reasons for converting the apparel park into an SEZ could be the poor response it elicited from the Surat textile industry, the primary beneficiary of the park, sources said.

The much-talked about park is hailed as the first park of its kind in the synthetic textile sector in the country. Gujarat chief minister Narendra Modi laid the foundation for the proposed apparel park in Surat on January 31 this year.

The park is being set up as a joint venture between the Union textile ministry and the Gujarat government.

While the Surat Urban Development Authority (Suda) has acquired the land, the Gujarat Industrial Development Corporation (GIDC) has been appointed as the nodal agency to set up the park.

The minister said the rate of Rs 600 per square metre for allotting land at the apparel park had been fixed after taking all factors including the infrastructure cost into consideration.

"The Haryana government is also working on a similar park and they have fixed the price three times higher at Rs 1,800 per square metre," he said.

With the conversion of the apparel park into an SEZ, Gujarat will have five SEZs in all "" the highest number in any state.

Already two SEZs are functioning at Kandla and one at Surat, which is the first park of its kind in the private sector, set up by the Diamond and Gems Development Corporation (DGDC).

The central Government has given permission for setting up of SEZs at Dahej and Mundra. Gujarat government's SEZ Act is also likely to be cleared shortly by the Centre, the minister said.

The Surat Apparel Park will be developed at a cost of Rs 42.55 crore.

The GIDC will invest Rs 8.50 crore for the land, while the Rs 21 crore bill for other infrastructural facilities such as power, roads garment testing, exhibition hall, marketing arcade, design centre, information technology centre, bank, phone booths, service block, departmental and provision stores, fire station, health centre and restaurants would be footed by the Union textile ministry, sources said.

The Gujarat government would chip in with Rs two crore. The GIDC is offering 100 plots of 1,100 square metres each at the Surat Apparel Park.

The park is also likely to give a major boost to employment as 66,150 workers "" 51,450 skilled workers and 14,700 unskilled "" are likely to be provided employment once the park starts functioning. The textile industry has already aired apprehensions that the park may miss the deadline of March 2004.

With a lot of work still to be completed, it seems it would still take some time before the park is fully developed.

Adding to the woes is the poor response from the textile industry.

"It seems both the union textile ministry and the Gujarat government seem to have gone cold after the foundation stone was laid," a leading textile entrepreneur said.

"I fail to understand why they are taking things so lightly. They will have to start moving," said an eminent industrialist.

"You will be surprised to know that many in the industry are just not aware that any such park is coming up near Surat," a textile trader said.

GIDC divisional manager Prashant Bhatt said the work on the park had started in the right earnest and allotment to two parties had already been made.

"We are hopeful that the park would be ready before the deadline," Bhatt said.

Bhatt said the tendency of the industry was to wait and watch whenever any such new projects come up.