Tuesday 8 November 2011

What is SEZ ?

" A Question to top speaker "

Almost all Country are facing same problem related to SEZ. What is the reason ?

02/11/11, 10:27 PM, Wednesday, Mumbai , Maharashtra, India

Surendra. A. Sharma GROUP

Ports and Logistics
Vadodara, Gujarat, India






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Surendra. A. Sharma • I think Union Rural Development Minister Shri Jairam Ramesh’s comment that we should not follow a China or US model also applies to SEZ development.

Sanjay Sarraf • Statement can be changed, infect SEZ Act is being revised for every state.Our Govt is also in 2nd stage.Do you think SEZ is necessary for India ?
Rudresh Tomar GROUP
Superintendent at Indian Customs, Mumbai
Mumbai Area, India
Rudresh Tomar • Yes. SEZs are a necessity if we have to have any global presence in manufacturing and services sectors. The policies which hinder growth, or for that matter even setting up of a SEZ are more socio-political in nature rather than of logical and logistical nature, given economics of the same are already in place.
Reliance SEZ is in the news for more than five years but not a single product has rolled out of it, owing to opposition of local population, supported by some political vested interests. This opposition is more of opportunism and less of anything to do with economic policies of the Govt. On the other hand, SEEPZ is in place for more than twenty years and has been highly successful. At the time of setting up of SEEPZ, SEZ policy was not even born, it was only an export processing zone. The difference is more than visible and loud, the message is clear. Prioritize a cure for labour pain than to look for a baby-sitter.
Sanjay Sarraf • You are mixing two thing. Ok why reliance SEZ could not complete ?
Surendra. A. Sharma • India has to develop its own concept of SEZ and not copy paste from other countries, this is more relevant today when global outsourcing and cost cutting are the norms. SEZ needs to be industry specific in areas where we want to be seen in the next decade and not in industries which even India is outsourcing from other countries.
India (GOI) has to consider expanding opening of SEZ in neighbouring countries to tap the advantage and develop bilateral trade in sectors where they can offer better advantage.This would be a step in developing our own model..
Rudresh Tomar • Hi Sanjay.
May be I am mixing two thing but the issue is one, "Necessity of SEZs". Why Reliance SEZ could not complete? Not many guesses. First the villagers agreed to sell their lands for SEZ in the hopes of getting good prices for the same and everlasting jobs for themselves and their future generations. Then, "on a second thought", at an opportune time, when things appeared to be working out well, villagers declined to give up their lands and instead some of them demanded their lands back for which they had already received monetary considerations long back. Petitions in the High Court ensured that the outcome gets mired in legal tangles. It is learnt that more than 90% villagers backed out of their commitments to give land to Reliance.
The economics of the SEZ and Govt, policies were in place, but socio-political moves created roadblocks in even completion of land acquisition. However, I feel Reliance will ultimately be able to have its SEZ running soon with whatever land it gets. Another victim was Videocon SEZ in Raigad Distt., though for a little different reasons.
Anyway, I view matters from the sidelines. Your understanding of the issues is better than that of mine.

Sanjay Sarraf • Hi Rudresh,
According to news you are right .In fact , Reliance is responsible for not completing lands of acquisition for SEZ . Reliance and ruling govt. gave a reason to opposition and villager were utilized by some leaders even villagers came to together for a common interest .Reliance gave a reason to start socio-political movements .
You - The economics of the SEZ and Govt, policies were in place, but socio-political moves created roadblocks in even completion of land acquisition.
Me - Reliance is responsible itself.
You - However, I feel Reliance will ultimately be able to have its SEZ running soon with whatever land it gets.
Me -I also think that Reliance will be able, but main problems is this that lands are scattered
you - Another victim was Videocon SEZ in Raigad Distt., though for a little different reasons.
Me - It has been solved.
You - Anyway, I view matters from the sidelines. Your understanding of the issues is better than that of mine.
Me - No, I am not better then you although you answer are logically .
Sanjay Sarraf • Hi Mr. Sharma
You - India has to develop its own concept of SEZ and not copy paste from other countries, this is more relevant today when global outsourcing and cost cutting are the norms.
Me - Agreed.
You - SEZ needs to be industry specific in areas where we want to be seen in the next decade and not in industries which even India is outsourcing from other countries.
Me - can you throw more light on this ?
You - India (GOI) has to consider expanding opening of SEZ in neighbouring countries to tap the advantage and develop bilateral trade in sectors where they can offer better advantage.This would be a step in developing our own model..
Me - Agreed.But my question is remains unanswered.
What is SEZ ?
Which type of difficulties, Other countries are facing related to SEZ ?
Do you believe that SEZ is future of world ?
Why SEZ is important for Development of any country ?
What is the role of SEZ in the development of country ?
Surendra. A. Sharma • @Sanjay
India has to indentify industries where it has a huge domestic demand and potential to be the world leader and encourage those industries. After Automobile another potential industry for India would be Aeronautical industry for example which requires skill and expertise.
GOI as a mentor has to guide the investor and support high potential industries which have high entry barrier with suitable policy, infrastructure and additional benefits which can also be region specific so that new areas which require development are also covered.
SEZ policy can promote such backward regions and potential industries with additional benefits. This will be fine tuning the SEZ policy to suit our country.
Sanjay Sarraf • ThnX Mr.Sharma
Do you think SEZ can play a vital role in development of country ?
Surendra. A. Sharma • SEZs in India have been contributing significantly to the growth of exports. SEZ units get infrastructure support and better business environment of less taxes etc, helping them to concentrate on exports.
But in the long run viability of businesses to compete globally (as they are export oriented) and support of common infrastructure linking them to the ports etc would be necessary to sustain growth.Sanjay Sarraf • Excellent, Mr. Sharma
But mostly Industrialist / MNC or developers are facing a lot of problems related to acquisition of and approval by Govt.
According to you there is any solution for a smooth acquisition of lands ?
Surendra. A. Sharma • Dear Sanjay,
Integration with the state policy is important for any infrastructure development including SEZs.
Given your excellent contacts, states can initiate a study to identify areas which require development, in which the state government also would be willing to support. Such projects can invite pooling of resources and ensure faster development. In short a ground work to ensure co-operation can be laid.
Sanjay Sarraf • Dear Mr. Surendra
I do agree with you.You know about SEZ better than me.

Mumbai, India

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