Export units flock to SEZ to avail export sops

August 29th, 2008 - 9:57 pm ICT by IANS  

Ahmedabad, Aug 29 (IANS) Export-oriented units (EOUs) are planning new manufacturing capacities in the engineering special economic zone (SEZ) being promoted by the city-based Dishman Pharmaceuticals Ltd (DCCL) near here, the company said Friday. With the prospect of losing export incentives with the termination of the EOU scheme in 2011, these units are hoping they will be able to avail of export sops for new facilities at Disham’s a non-product specific SEZ.

The zone is located adjacent to the company’s Rs.40-billion pharma SEZ, about 50 km from Ahmedabad.

Sanjay Majumdar, Disham board member, told reporters Friday that engineering units in Ahmedabad, Vadodara, Rajkot and Surendra Nagar have agreed to buy plots in the SEZ, which is coming up on 400-acre area.

Commitments have already been made were there for about 40 percent of the space. “There is a strong possibility of foreign firms also setting up their production hubs in the SEZ,” he said.

Majumdar said the development of the proposed special economic region at Dholera, about 15 km from the proposed SEZ, was another factor nudging engineering firms to flock to the zone.

With an international airport to come up near Dholera, along with a new port and rail connectivity to Mumbai under the Delhi-Mumbai Industrial Corridor project, the SEZ has become the ideal location of EOUs as well as other prospective customers.

Disham chairman and managing director J.R. Vyassaid said while 400 acres of land have been acquired for the pharma SEZ, the acquisition process for the engineering SEZ is on the verge of completion.

Vyas said the total investment on the two zones will be Rs.5 billion, of which the investment on pharma SEZ alone will be about Rs.4 billion.

Of this, equity component will be Rs.1,200 million, Rs.1,770 million will be debt and close to Rs.1,000 million will be met by internal accruals.

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