EPZ in South India

The EPZ in South India comprises of the Madras Export Processing Zone and the Cochin Export Processing Zone. The concept of EPZ or Export Processing Zones in India has been incorporated to boost the Indian economy. The incentives and exemptions offered by the EPZ in South India along with the simplified procedure for establishment of industries are attracting more and more sectors towards it. The export processing zones offer both fiscal as well as non-fiscal benefits to the member units. Some other benefits are like:

Hassle free Single Window System

• Exemption allowed to the importers of industrial instruments from the payment of Customs Duty
• Tax Holiday on import of raw materials, capital goods and on consumer goods also
• Excise Duty exemption offered to commodities imported from DTAs
• Complete exemption from the burden of Corporate Income Tax in the initial time span of 5 years from the date of creation of the company
• Liberty from Import Licenses
• Private bonded Warehouses for the purpose of repackaging, repairing, and marketing
• Subcontracting activities carried on with respect to production of goods
• No industry other than the IT sector can obtain licenses
• 100 % inflow of Foreign Direct Investment are allowed within the EPZs
• Implementation of Export-Import Policy
• Achievement of Export House Status through the consolidation of the FOB values of the exported commodities manufactured at the branch of a company located in the EPZ with the parent unit of that company situated in the DTA

Madras Export Processing Zone

MEPZ or the Madras Export Processing Zone among the EPZ in South India, was founded in the year 1984 with a view to enhance foreign direct investment which will bring more foreign exchange into the economy, lead to the opening up of new employment avenues, and increase in the existing employment avenues. The Madras Export Processing Zone is situated at GST Road in Tambaram in the city of Chennai. The Export Processing Zone at Madras was transformed into a Special Economic Zone recently in the year 2003. The zone is under the direct supervision of the Ministry Of Commerce and industry.

Units in Madras Export Processing Zone

The Madras Export Processing Zone includes wide range of industries within its purview, as for example:

• Software Units
• Engineering Goods
• Automobile Ancillaries
• Textile Units

Amenities in Madras Export Processing Zone

The Madras Export Processing Zone serves to fulfill the requirement of the 100 % EOUs situated in the state of Tamil Nadu as well as Pondicherry and Andaman and Nicobar Islands. The Madras Export Processing Zone offers numerous facilities to the inhabitants of the Zone like:

• Container Freight Stations
• Uninterrupted Power Supply
• Water Connection
• Offshore Banking Units
• Exemption from Excise Duty
• Exemption from Customs Duty
• Single Window System

Cochin Export Processing Zone:

The Cochin Export Processing Zone is situated in Kakkanad in the city of Cochin has been established to boost the manufacture of varied goods at a large scale for the purpose of exports. The Cochin Export Processing Zone is supervised by the central government of India. The main purpose behind the establishment of the Cochin Export Processing Zone is to attract more foreign exchange through the inflow of Foreign Direct investment.

Amenities in Cochin Export Processing Zone:

The Cochin Export Processing Zone offers wide range of amenities to the inhabitants such as:

• Water Connection
• Airport
• Food stations
• Banking Facilities
• Telephone Connection
• Medical units
• Postal Facilities
• Seaport
• Land for Residential as well as Commercial Purpose
• Road and Rail Connectivity
• Shopping Malls

Importance of Cochin Export Processing Zone:

The Cochin EPZ in South India is especially advantageous for the Information Technology sector, as the VSNL Gateway, which is blessed with 15 Gbps capacity and incorporates GSR to enhance transmission at a faster rate, will facilitate the residents. The most important factor that serves to attract the attention of the Information Technology sector is that two significant sea cables are there in the city of Cochin, which connects the city with approximately 69 foreign countries. The special software park known as TECHNOPOLIS will also accelerate the growth of the Information Technology sector. The other important sector within the Cochin Export Processing Zone with regard to the quantity of exports is the electronic hardware sector. The electronic units within the Cochin Export Processing Zone are facilitated with hassle free transportation of goods through land as well as sea.