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. |