Special Economic Zones (SEZ)

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A Special Economic Zone (SEZ) is an ecological district that follows noninterventionist monetary guidelines which are different from the conventional economic norms of a country. SEZ envelops a wide array of zones incorporating Free Zones (FZ), Free Trade Zones (FTZ), Industrial Estates (IE), Export Processing Zones (EPZ), Free Ports, etc. Generally the objective of SEZ formation is to attract more foreign investment typically through an overseas business or a conglomerate.

Generally, SEZs are constructed by utilizing an array of institutional compositions varying from complete government owned organizations to privately owned firms. In some cases, the government owned organizations perform as quasi-government groups in which they follow a pseudo-corporate organization composition and have total control over their budget construction.

SEZs are also constructed under the tie-up of private and government organizations where the government sector offer assistance by introducing provisions on infrastructure, investment, issue of bonds & debentures, etc. This enables the private industry to attain a considerable rate of return on the venture.

Importance of SEZ in India

India has over 1022 SEZ units currently under the structural formatting. It has more than 9 fully functional SEZs and over 7 Export Processing Zones (EPZs) which have been transformed into SEZs. Each entirely functional SEZs has a standard dimension of 200 acres and are spread in different parts of India.

The need for a Special Economic Zone was realized by India in April 2000 in order to augment the foreign direct investment in the nation, to trigger its exports revenues and to provide a global platform to local firms and manufacturers. Indian government has always been upbeat about the expansion of SEZs and to supplement their plans it has also introduced policies which are assessed on quarterly basis. This ensures the supply of enough facilities to the SEZ developers along with the firms establishing their business units in it.

Important SEZs in India

  • Belgaum Aerospace SEZ Operational SEZ in Karnataka
  • Chennai One in Thoraipakkam, Chennai
  • ETA Technopark in Navalur, Chennai
  • Falta in West Bengal
  • Kensington in Powai, Mumbai
  • Mahindra World City in Chennai and Jaipur
  • MARG Swarnabhoomi in Tamil Nadu
  • MIHAN in Pune
  • SEEPZ in Mumbai
  • Greater NOIDA in Uttar Pradesh
  • Pharma and Biotech SEZ in Aurangabad, Maharashtra

Special Economic Zones India

Last Updated on 3/9/2012