India still far from SEZlling
ET takes a ringside view of the status of SEZs - expected to attract over Rs 40,000 crore in five years.
By TNN |
NEW DELHI: Despite being prone to frequent changes in policy, SEZs have attracted hundreds of corporates, acting as an investment booster. While a total of 150 SEZs have been approved so far by the government, there are as many as 200 fresh proposals waiting in the wings. According to official estimates, total investments in SEZs is expected to be over Rs 40,000 crore in the next five years.
Although the interest shown by foreign players has been relatively low, a number of big players like Nokia, Apache and Foxcon have already received the green signal from the government. Nokia started production just four months after getting approval and is producing 2.5m sets every month generating a turnover of Rs 650 crore in the first four months.
The Houston-based Hines, one of the largest privately held real estate development, investment and management companies in the world, SembCorp Engineers and Constructors, Singapore have also expressed interest SEZs.
Korean steel company Posco’s proposal of setting up a 12 million-tonne steel project in Orissa at an estimated cost of $9 bn is waiting for the board of approval nod. Big investments are also flowing in from Indian companies in SEZs. Reliance Industries has received approval for its 15,000-acre SEZ in Haryana, which it is building at an estimated cost of $3.33-4.89 bn. Its Jamnagar petroleum and petrochemicals SEZ has already been notified.
Mahindra is operating two SEZs in Bangalore (IT and apparel & fashion) and has invested $2bn in it. Wipro, Flextronics, Tata Consultancy, Serum Institute and ONGC have also pumped in huge investments in their respective SEZs.
There are a total of 18 operational SEZs in the country which includes eight export processing zones converted into SEZs. Only ten new SEZs have been notified so far.
These include Divi’s Lab’s SEZ in Visakhapatnam, Wipro’s IT SEZs in Hyderabad and Bangalore, Reliance’s petroleum SEZ in Jamnagar, Adani’s multi-product SEZ in Mundra, Serum Institute’s pharma & bio-tech SEZ in Pune, Chandigarh administration’s electronics & IT SEZ, Flextronics’ SEZ in Chennai and Tata Consultancy’s IT SEZ in Chennai.
Although the interest shown by foreign players has been relatively low, a number of big players like Nokia, Apache and Foxcon have already received the green signal from the government. Nokia started production just four months after getting approval and is producing 2.5m sets every month generating a turnover of Rs 650 crore in the first four months.
The Houston-based Hines, one of the largest privately held real estate development, investment and management companies in the world, SembCorp Engineers and Constructors, Singapore have also expressed interest SEZs.
Korean steel company Posco’s proposal of setting up a 12 million-tonne steel project in Orissa at an estimated cost of $9 bn is waiting for the board of approval nod. Big investments are also flowing in from Indian companies in SEZs. Reliance Industries has received approval for its 15,000-acre SEZ in Haryana, which it is building at an estimated cost of $3.33-4.89 bn. Its Jamnagar petroleum and petrochemicals SEZ has already been notified.
Mahindra is operating two SEZs in Bangalore (IT and apparel & fashion) and has invested $2bn in it. Wipro, Flextronics, Tata Consultancy, Serum Institute and ONGC have also pumped in huge investments in their respective SEZs.
There are a total of 18 operational SEZs in the country which includes eight export processing zones converted into SEZs. Only ten new SEZs have been notified so far.
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These include Divi’s Lab’s SEZ in Visakhapatnam, Wipro’s IT SEZs in Hyderabad and Bangalore, Reliance’s petroleum SEZ in Jamnagar, Adani’s multi-product SEZ in Mundra, Serum Institute’s pharma & bio-tech SEZ in Pune, Chandigarh administration’s electronics & IT SEZ, Flextronics’ SEZ in Chennai and Tata Consultancy’s IT SEZ in Chennai.
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