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Falta Export Processing zone
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FEPZ - Provide Adequate Infrastructural And
Other Necessary Support Services
By A Correspondent

Falta Export Processing Zone (FEPZ - the Zone) is one of the seven export processing zones set up by Government of India in the Ministry of Commerce & Industry under the EPZ scheme. Export Processing Zones are physically demarcated areas separated from the Domestic Tariff Area (DTA) outside by physical, customs and fiscal bonds. The units in the Zone have to export their entire production and are granted certain entitlements such as Duty Deferment on Import and Domestic procurement, ease of procedure. The objective is to provide adequate infrastructural and other necessary support services to enable them to be competitive quality and cost wise. The scheme and the Zone are managed and administered by the office of the Development Commissioner. This office in addition to the management of the Zone and units therein also manages similar 100% export oriented units under the EOU scheme approved on a stand-alone basis outside the Zone in the eastern and north-eastern states of the Indian Union.


Infrastructure
  • Gross area 280 acres (acquired 87acres and transferred from CPT 193 acres). In addition more than 80 acres of land acquired for rehabilitation of affected families.
  • Location - Panchayat area.
  • Area Developed- 115 acres (full infrastructural facilities)/47out of 49 acres developed already allotted.
  • Area under development (Utility and Infrastructure)-165acres.
  • Built-up space - SDF-15570 sq m (2nos.) - fully allotted.
  • Industrial shed - 5000sq m (2 nos.) - fully allotted.
  • Internal road - 10 kms.
  • Under construction- 5 kms.
  • Capacity for water supplies - About 1 million litres per day with drainage facilities.
  • Electric sub-station for dedicated power supply for all categories, supplemented by local sub-stations.
  • Dumping site.


  • Social and EconomicInfrastructure
  • Courier service (Post office planned).
  • Telephone exchange.
  • Residential accomodation.
  • ESI medical dispensary.
  • Bank branches - 2.
  • Fire station building (under construction).
  • Container handling jetty -Capacity 5 containers (20 TEUs) per hour.
  • Community Polytechnic for skill and training development.


  • INFRASTRUCTURAL FACILITIES
  • Developed land Built-up space at affordable and attractive rates.
  • Quality and Stable Power Supply.
  • Telecommunications
  • Container Handling Jetty
  • Facilitation and documentation services
  • Social Infrastructure
  • Other
  • Developed land and Built-up space at affordable and attractive rates
    All rents are payable on annual basis. One year’s rent payable at the time of allotment. Sub -lease, mortgage and alteration in use subject to the prior permission of the office of the Development Commissioner. Lease deed is to be executed and registered. No Stamp Duty is payable on registration.

    Quality and stable power supply
    The West Bengal State Electricity Board assures uninterrupted power supply for industries to be set up in the Zone, through its 132KV service station within the Zone itself.

    Power tariff: Rupees 1.48 to 2.70 per unit (basic rate for different categories of consumers). In addition there is also Demand Charge and Fuel surcharges which are revised from time to time. There is however a waiver of 20 percent to 40 percent on the basic electricity charges, granted for new industrial units or industries undertaking consumption above 50 hp. Units are also allotted to initial captive sets with permission from the WBSEB and obtain fuel with duty deferment (exemption). Surplus power can be fed into state grid subject to quality and minimum generation on or wheeled through the state grid for own consumption outside but not allowed to sell /supply power to another consumer without license.

    Telecommunications
    There is an independent Electronic Telephone Exchange, with UHF link installed inside the Zone integrated into the Calcutta system. RT facilities can also be set up by the units. Efforts are on to make the Zone accessible to and covered by Cellular telephony.

    Water supply:
    Water supply from deep tube wells through a well-knit distribution system, within the Zone (Rs. 30.00 per 1000 K L). Units are allowed to create their own sources through tube wells etc., subject to maintenance of minimum separation from the existing tube wells.

    Container Handling Jetty:
    To facilitate smooth and quick movement of 20 feet and 40 feet containers, in barges upto about 200 DWT capacities an independent Container Handling Jetty is operational near the Zone. No customs formalities at the Jetty site for units in the Zone. Facilities also available to other users/Units outside the Zone.

    Facilitation and documentation services:
    The office of the Development Commissioner serves as the one-window office for all the units in the Zone, including customs, security and the office of the Labour Commissioner of the Government of West Bengal, situated within the Zone/ West Bengal State Electricity Board.



    FALTA EXPORT PROCESSING ZONE AT A GLANCE AS ON 31.03.2000
    Status of operation of Units
  • Total approvals granted since inception –281
  • Implemented –85
  • Under Implementation –30
  • Yet to initiate action –4
  • Approval cancelled –162
  • Debonded-4
  • Closed –3
  • Debonded in principle –22

  • 55 units granted approval in FY 2000, mostly in March.

    Sectoral Break up

  • Engineering –38
  • Electronics- 21
  • Textiles & Allied –36
  • Chemicals & Petrochemicals –26
  • Gems & Jewellery –8
  • Tea- 14
  • Others –11
  • Investment by Govt. of India -Rs 28.8 crore (cumulative) .
  • Revenue Expenditure (FY 1999-2000) -Rs 0.97 Crore/ annum.
  • Revenue Earned -Rs 0.83 Crore (90% of revenue expenditure) (FY 1999-2000).
  • Domestic Sources:

  • Four top importers are also the four top exporters.Cumulative export/cumulative investment in infrastructure (till end FY 2000) -2500%Revenue Export/% of export (FY 2000) -0.40%

    Investment by units - Rs 237 crores
    NRI -Rs 5 crore.
    Foreign bodies- Rs 10.73 crores.
    Employment -Managerial -78
               -Supervisory -190
               -Others -2040
                Total –2308

  • Export Details

  • FYs 86 -90 -Rs 32.34 crores (Cum).
    FYs 91-95 -Rs 139.01 crores.
    FYs 96- 2000- Rs 445.5 crores.
    CARG -35%

    Exports in the last 5 years

  • FY 97 -Rs 29.15 crores
  • FY 98 -Rs 52.94 crores
  • FY 99 -Rs 72.77 crores
  • FY 2000 -Rs 266.60 crores
  • Anticipated level of performance in 2000 -2001 -Rs 550 Crore.

  • Overall NFEP (value addition) -45%Average per capita Labour productivity -Rs 13 lakhs per annum Value addition -Rs 6.2 lakhs per annum
    Wages as a percentage of cost -5.24%Cost of utilities as percentage of cost -8.7%

    Continuous improvement in the last few years in the following parameters:

  • Investment to out-put ratio.
  • Per unit production and Export.
  • Reduction in the number of closed and non-functioning units.
  • Diversification in the export basket.In FY 2000 top ten out of 50 exporting units accounted for 80% of the exports.In FY 98 one single unit alone accounted for 50% of the exports.
  • 6 units obtained ISO certification and FDA approval. One unit (Amarnath Enviroplast Ltd.) bagged the National Award for product exceltural timber).
  • Top Exporting Sectors

  • Textiles and garments mostly to non-quota countries.
  • Engineering items.
  • Polymer based products.
  • Tea.
  • Top Export Destinations

  • Far East
  • Middle East
  • European Union and the US.
  • Top Importing Countries

  • USA
  • China
  • Far East
  • Middle East
  • European Union
  • Strengths

  • Effective investment host for the industry in the traditional

  • manufacturing sector.
  • Foreign trade profile consistent with local factor endowments.
  • High rate of growth. The share of EPZ/EOU Sector in overall exports in FY 99-11.4%.

  • In the east Zone, this is Rs 800 Crore about 12% and the share is rising.
  • Ability to offer more facilities.
  • Low cost of operation.
  • Ease of entry and lower cost of operation for commodity / volume driven products and ease of operation for niche products.
  • So far most resource efficient scheme for export enhancement.
  • Good and strong linkage with industrial capacity in the command and catchment area.
  • Opportunities

  • Scope for quick capacity building.
  • Continuous diversification in export profile.
  • Rising investor confidence.
  • Consolidate the strengths and high points of the scheme.
  • Integration with local factor endowments.
  • Action Plan for export enhancement prepared.
  • Strong industrial and service base in the State.
  • Investor friendly policies of the central and the State Governments.

  •  
    Weather characteristics
    Climate: Tropical
    Temperature: 15 degree Celsius to 35 degree Celsius(Average) 
    Rainfall: 1700 mm (Average)
    Relative Humidity: 50 per cent to 90 per cent
    Ground Water Level: 0.90 metres to 2.25 metres
    Water Characteristics:pH value -6.7 to 7.0
    Chloride- 304.50 ppm to 336.75 ppm 
    Sulfate- 186.48 to 190.00
    Wind characteristics : Predominant by South and South-East wind direction with wind speed not exceeding 40 kilometres an hour.

     

    WEST BENGAL : At a glance
    Population : 68.1 million (1991 )
    literacy Rate: 72 per cent
    Industrial Production : Rupees 180 Billion (approximately)
    West Bengal ranks among the top States in terms of industrial growth, production and foreign trade. Calcutta, the capital city, has excellent social infrastructure and is the first city in India to have a Metro-Underground rail transport system. Foreign Trade in goods and services is worth about US $3.5 billion.
     
     
     

     


     
    Main areas for Export Production :
  • Iron and Steel and metallurgical products
  • Light Engineering goods 
  • Natural Fabric based products, particularly Jute
  • Leather Products
  • Textiles
  • Chemicals
  • Petrochemicals and Polymer based products
  • Information and Knowledge based products and services
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    PUBLIC SECTOR – A perspective
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