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EPZs in India Compare Favourably
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EPZS IN INDIA COMPARE VERY FAVOURABLY WITH
THOSE IN OTHER DEVELOPING COUNTRIES

Says D. Chakrabarti, Development Commissioner, Falta Export Processing Zone

What are the activities of Falta Export Processing Zone (FEPZ)?

  • To maintain, manage the facilities and Infrastructure of the Zone and Estate management.
  • To approve projects under EOU scheme.
  • To monitor performance of the units.
  • To adjudicate under Foreign Trade (Development & Regulation) Act.
  • Grant approval for duty deferred import, domestic procurement by the units.
  • To work as single point nodal agency for various foreign trade related documentation related and regulatory services.
  • To provide escort assistance and services to the units.
  • To disburse entitlements to the units under Export/Import policy (for reversal of taxes /duties).
  • To service Board of Approval / FEPZ authority.
  • To perform other designated and delegated functions.
  • While this office provides escort assistance and disburses entitlements, this office cannot provide direct marketing support, obtention of quota for items such as textiles and garments covered under bilateral agreements and financial assistance for projects. However in all such cases this office interacts and intercedes on behalf of the units with the prospective agencies. The units also have to obtain other statutory approvals from the concerned agencies / authorities.

    What are the prospects of setting up of EPZs in the Eastern region?
    Government of India has allowed establishment of EPZs by the State Government and private sector also. Government of India has no plan at present either to expand Falta EPZ or set up any new EPZ in the region. Department of Commerce Government of India has however approved establishment of Export Promotion Industrial Parks in all eastern and north eastern states barring Arunachal Pradesh and Sikkim. The expansion of units in the l00% EOU sector outside the Zone is also substantial. As for prospects, there is scope for expansion of Falta EPZ. The State Government is also considering proposals for establishment of Special Economic Zones; announced recently.

    How is FEPZ planning to better the industrial and social environment of Falta?
    Within the zone schemes worth nearly Rs. 5 crores are under implementation for construction of Industrial Shed, provision for infrastructural facilities and utilities covering 165 acres. Outside the Zone, Government of India has sanctioned schemes Worth more than Rs 6 crores for construction of Fire Station building improvement of power supply, improvement of Diamond Harbour road. State Government will also provide funds for these schemes. There is a proposal for a Container Parking Yard/ Container Freight Station in the Zone along with the proposal for declaring Falta jetty as a minor Port. For social infrastructure this office is interacting with the State Government. State Government agencies, private sector service providers. This covers housing, educational and medical facilities, training and skill development of workers. This office is also interacting with specialised organisations, educational institutions for providing specific services such as management input and appreciation programmes.

    What are your observations on the impact of liberalisation on the EPZs?There is a strong perception among the exporter community that there is no substantial additional benefit for location in the EPZs for export purposes. This has enhanced the need for the Zone to be seen as viable and competitive investment host.


    Do you suggest any measures to improve the Status of EPZs?
    Emphasis will continue to be on the following:
  • Top of the order infrastructure facilities, to reduce operational costs.
  • Demystify myths that EOU/EPZ scheme being not competitive/attractive enough to consolidate the areas of strength of the EPZ scheme.
  • Strengthen exporter and export friendly ambience.
  • Remove operational difficulties of the units.
  • How do you look at the future of the EPZs, especially FEPZ?
    With optimism and confidence. The share of exports from the EPZs is steadily increasing and the rate of growth of export from EPZs is much higher than the national average. Exports from FEPZ increased by 270% in 1999-2000 and by 100% in 1st quarter of the current financial year. In terms of several performance parameters EPZs in India compare very favourably with those in other developing countries. There are several areas of opportunity and strengths.


    What are the new areas of operation you are looking at?
    The areas of focus are:
  • Persuading merchant exporters to have backward integration into manufacturing by establishment of units in the Zone.
  • Continuous product diversification and expansion of capacity.
  • Technological upgradation / modernisation of process.
  • Attracting investments from abroad.
  • Strengthening of management inputs.
  • Any comments on Government policies?
    Government interacts with the exporter community continuously for addressing the felt requirements of the exporters. Secondly, policies and operational regime are being aligned with each other and the policies are being made more liberal with emphasis on self-regulation self-certification by the units with minimum regulation. The physical controls are being replaced by fiscal controls.

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