Speclal Lconomlc Zones ln lndla

lndla was one of Lhe flrsL ln Asla Lo recognlze Lhe effecLlveness of Lhe LxporL rocesslng Zone (LZ)
model ln promoLlng exporLs wlLh Aslas flrsL LZ seL up ln kandla ln 1963 WlLh a vlew Lo overcome
Lhe shorLcomlngs experlenced on accounL of Lhe mulLlpllclLy of conLrols and clearances absence of
worldclass lnfrasLrucLure and an unsLable flscal reglme and wlLh a vlew Lo aLLracL larger forelgn
lnvesLmenLs ln lndla Lhe Speclal Lconomlc Zones (SLZs) ollcy was announced ln Aprll 2000
TIe muIn objecLIves oI LIe SEZ AcL ure:
(u) generuLIon oI uddILIonuI economIc ucLIvILy
(b) promoLIon oI exporLs oI goods und servIces;
(c) promoLIon oI InvesLmenL Irom domesLIc und IoreIgn sources;
(d) creuLIon oI empIoymenL opporLunILIes;
(e) deveIopmenL oI InIrusLrucLure IucIIILIes;

ucIIILIes und ncenLIves

Incentives und Iucilities oIIered to the SIZs
The incentives und Iucilities oIIered to the onits in SIZs Ior uttructing investments into the SIZs,
incloding Ioreign investment inclode:-
DuLy Iree ImporLJdomesLIc procuremenL oI goods Ior deveIopmenL
1oo% ncome Tux exempLIon on exporL Income Ior SEZ unILs under SecLIon 1oAA oI LIe ncome Tux AcL Ior IIrsL
yeurs,
o% Ior nexL yeurs LIereuILer und o% oI LIe pIougIed buck exporL proIIL Ior nexL yeurs.
ExempLIon Irom mInImum uILernuLe Lux under secLIon 11JB oI LIe ncome Tux AcL.
ExLernuI commercIuI borrowIng by SEZ unILs upLo US $ oo mIIIIon In u yeur wILIouL uny muLurILy resLrIcLIon
LIrougI recognIzed bunkIng cIunneIs.
ExempLIon Irom CenLruI SuIes Tux.
ExempLIon Irom ServIce Tux.
SIngIe wIndow cIeurunce Ior CenLruI und SLuLe IeveI upprovuIs.
ExempLIon Irom SLuLe suIes Lux und oLIer IevIes us exLended by LIe respecLIve SLuLe GovernmenLs.
The mujor incentives und Iucilities uvuiluble to SIZ developers inclode:-
ExempLIon Irom cusLomsJexcIse duLIes Ior deveIopmenL oI SEZs Ior uuLIorIzed operuLIons upproved by LIe BOA.
ncome Tux exempLIon on Income derIved Irom LIe busIness oI deveIopmenL oI LIe SEZ In u bIock oI 1o yeurs In
1 yeurs under SecLIon 8o-AB oI LIe ncome Tux AcL.
ExempLIon Irom mInImum uILernuLe Lux under SecLIon 11 JB oI LIe ncome Tux AcL.
ExempLIon Irom dIvIdend dIsLrIbuLIon Lux under SecLIon 11O oI LIe ncome Tux AcL.
ExempLIon Irom CenLruI SuIes Tux (CST).
ExempLIon Irom ServIce Tux (SecLIon ;, z6 und Second ScIeduIe oI LIe SEZ AcL).




ExporL PerIormunces

Ixports Irom the Ionctioning SIZs doring the lust three yeurs ure us onder:
Yeur Vuloe {Rs. Crore) Growth Rute { over previoos yeur )
zoo-zooq 1,8q q%
zooq-zoo 18,1q z%
zoo-zoo6 zz 8qo z%
zoo6-zooo; q,61 z%
zoo;-zoo8 66,68 q%
zoo8-zooq qq,68q o%
zooq-zo1o z,zo,;11.q 1z1.qo%


hLLp//wwwsezlndlanlcln/abouLepasp
Ludhlana
Rockman Projects Ltd, which is setting up a textile SEZ on 100 hectares at Ludhiana with an investment of Rs
250 crore, had been granted in-principle approval last year.
The World Bank ranked Ludhiana as the city in ndia with the best business environment in 2009.
[6]

Until 2008 Ludhiana was ranked No.1 in ndia in terms of Per capita income. Ludhiana is considered a
very rich city in ndia. And most people in Ludhiana take pride in this fact.
The riches are brought mostly by small scale industrial units,
[7]
which produce ndustrial goods,
Machine parts, Auto Parts, house hold appliances, hosiery and garments. Ludhiana is Asia's largest
hub for Bicycle manufacturing and produces more than 50% of ndia's bicycle consumption of more
than 10 million per annum. Ludhiana also produces 60% of ndia's Tractor parts. A large portion of
Auto and two-wheeler parts. Many parts used in German cars like BMWand Mercedes are exclusively
produced in Ludhiana to satisfy the whole world requirement. t is one of the largest manufacturer of
Sewing Machines. Hand tools and precision industrial equipment is another speciality. n the Hosiery
industry Ludhiana is famous all over ndia for its Woollen sweaters and cotton t-shirts. n fact most of
the top ndian woollen brands like Monte Carlo are based in Ludhiana.
Besides ndustry, Ludhiana is a major Agri-Products producer. t is a big centre for Dairy product
packaging. Ludhiana is also a major Trading hub for a lot of commodities for the entire North ndia. t
is also a major consumer shopping centre with a lot of consumers coming from various parts of
Punjab to do their big ticket shopping.
The first major setback to the industry and business here has been the insurgency in Punjab that
lasted from 1984 to 1992. A lot of industries moved out of Ludhiana and set up base in the township
of Faridabad, Harayana, in close contiguity with the greater New Delhi area. Another major impact
has been the preferential taxation policies in neighbouring hill states which has provided the
businesses in those states a huge competitive advantage. A lot of Ludhiana based industries are
moving into those areas to take advantage of the zero tax policies. Another major challenges in recent
years has been the chronic labour shortages.
At the time of ndia's independence, Ludhiana was a sleepy town and not among the main cities of
Punjab. Ludhiana is also home to the Ludhiana Stock Exchange Association.


The IndustriaI city of Ludhiana is aII set to get some reIief from chronic traffic snarIs as Ieft
hand side of Sidhwan CanaI Project right from Ludhiana to Ferozepur Road wouId be opened
to traffic on October 1.

'Punjab Deputy Chief Minister Sukhbir Singh Badal Monday reviewed the progress of this Rs 416
crore project to construct 26.900 Km four lane road with carriage way on each side from the medium
of Doraha (NH1) to Ludhiana-Ferozepur Road (NH95) providing a bypass for traffic going to
Ferozepur.

hLLp//pun[abnewsllnecom/conLenL/sldhwancanalpro[ecLdorahaferozepurroadsLrecLhopen
LrafflcocLober1sukhblr/32291



TIe Ideu oI u 1oo per cenL exporL orIenLed uppureI purk Is Lo provIde u boosL Lo LIIs IndusLry In
udIIunu. ndIu's LexLIIe secLor Is LIe counLry's second IurgesL IndusLry uILer ugrIcuILure besIdes LIe
IurgesL IoreIgn exporL eurner, uccounLIng Ior per cenL oI LIe gross exporL eurnIngs In Lrude.
hLLp//arLlclesLlmesoflndlalndlaLlmescom/20030612/chandlgarh/27830043_1_knlLwear
exporLersapparelexporLersassoclaLlonLexLllelndusLry

The government has permitted foreign equity participation up to 100%, through automatic route, in the textile
sector with the only exclusion in knitwear/knitting sector, which is still set aside for SS.

Article Source: http://EzineArticles.com/364132
The Ministry of Textiles has reformed the TCD & APE Schemes into one well-organized "Scheme for ntegrated
Textile Parks" for pacing up the execution of the Schemes and to realize the vision of attaining export target of
$50 billion by 2010. The Scheme is made on Public-Private Partnership (PPP) and foreseeing covering a
professional agency for project execution. The main obj ective of the STP is to offer the industry with world-class
infrastructure facilities for establishing their textile units. The scheme would of help to textile units for satisfying
international environmental and social standards.

Article Source: http://EzineArticles.com/364132
Special Economic Zone (SEZ) establishment at Amritsar and 16 new mega projects at a massive investment of
Rs 15981.17 crore were approved by the Punjab Government's Empowered Committee on ndustries. These
projects would generate a total of 4.30 lakh jobs.
M/s DLF Universal Ltd would develop SEZ at Amritsar, which would cover an area of 1000 acre. Other projects
approved by the Committee include SEZ project on 2500 acres at Jalandhar and in Ludhiana, at an investment of
Rs 1800 crore, providing 4000 jobs.
Ludhiana warming up
Textile projects at the cost of Rs 1500 crore will be set up by Ludhiana ntegrated Textile Park Ltd, in Ludhiana
district, providing jobs to about 85000 people. The Research and Development project in the field of agro
industries with an investment of Rs 92 crore in Ludhiana district will help generate employment for 91000 people.
Another industrial park at Mohali and an integrated textile park at Ludhiana with an investment of Rs 2037.61
crore and generating employment for 1,06,000 people is also going to be set up.
With a joint venture between Punjab Small ndustries and Export Corporation Ltd and Apparel Exporters
Association of Ludhiana, a 100 per cent export oriented mega apparel park at Doraha on GT Road in Ludhiana is
being planned. The projected apparel park will be proliferated over 100 acres of land, of which 82 acres have
been acquired and the remaining land will be acquired in the coming months. nfrastructure for the park will be
established in a year's time. The park will become ready within the next two years. Already, 115 companies are
interested in establishing their units in the park that will also be having road, rail and airport connectivity. A
common captive power plant is also being proj ected. Further, a commercial complex, a business centre, a
conference hall and an exhibition centre for buyer-seller meets are also projected.
Ludhiana with its traditional strength in flat knit apparel is another centre which has created a wide platform for
small quantities and high value products. The city is popular for any buyer who needs sweaters in woolen as well
as cotton blends. Nearly all buying organizations functioning with sweaters have vendors in the city. Many of the
brands supplying from Ludhiana cover Sears, Target, Espirit, GAP, H&M, Tom Taylor, NEXT, to quote a few of
the more design oriented buyers. n addition, technologically, the center is equipped with processes to offer
innovation and value-addition to flat knits, which is in huge demand among the buyers. The hub is exporting
nearly $18 billion, which is growing rapidly. The leading exporters cover Oswal Group, Nahar Group, Vardhman,
Greatway, Goyal Knitwears, Mohini Exports and Bhandari Exports.


Article Source: http://EzineArticles.com/364132