New Delhi, Jan 11: Industry body CII today said
India needs to focus on creating multi-product-mega special
economic zones to provide civic infrastructure for human
settlement, but the zones will have to be located away from
existing urban centres so that they do not draw on their
Government's focus should be on creating
multi-product-mega SEZs, and the states must be allowed to
auction the land/ site, however, each state should not have
more than one such project to start with, a CII statement
SEZs can help fuel manufacturing and exports-based
growth to supplement the service sector that has been largely
the engine of growth in India, CII said, adding a 10-hectare
minimum area is too small to support any major infrastructure
creation, therefore, the minimum size needs to be
significantly larger and very small SEZs that have been
sanctioned should be reviewed.
Creation of SEZs should address reduction of taxation,
of transaction cost and improvement of infrastructure, which
has burdened various sectors including manufacturing in India.
However, government plays an important role in mitigating
risks in investment, when market does not yield desirable
results, CII President R Seshasayee said.
CII also said the export oriented unit (EOU) and export
processing zone (EPZ) schemes must continue simultaneously
with SEZs and the proposal to discontinue the EOU scheme
in 2009 should be reviewed.