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Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
Ready Made Garments (Rmg), Textiles
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Ready Made Garments (Rmg), Textiles

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  • Mp, 3 lack sq km,19 industrial estates, 10,000 sq km,1800 firms , 70,000km roads,5500 km of railwaylines,425 trains,20000 fibreoptic network,3 rd largest producer of foodgrains,80% soyabean, 31%under forestcover, 13% forest resources, 11 agroclimatic zones
  • Transcript

    • 1. M P State Industrial Development Corporation Government of Madhya Pradesh THE NEW MADHYA PRADESH greets delegates International Real Estate Summit Dec - 2004
    • 2. Key Theme – International Real Estate Summit <ul><li>Pattern and Emerging TrendS </li></ul><ul><li>Policies for Sector </li></ul><ul><li>Design, Quality Norms, Constructions Practices </li></ul><ul><li>Financing Real Estate </li></ul><ul><li>Areas of Co-operation </li></ul><ul><li>Vast untapped opportunities </li></ul><ul><li>IT/ITES/CALL CENTRES/BPO SECTOR </li></ul><ul><li>FACILITIES MANAGEMENT </li></ul>
    • 3. International Story of this Buzzword (SEZ)
    • 4. <ul><li>The world before 1990s: </li></ul><ul><ul><li>Industry - domestic value and export focus </li></ul></ul><ul><ul><li>bilateral and preferential treaty-driven trade </li></ul></ul><ul><ul><li>High inward trade and investment barriers </li></ul></ul><ul><li>What made FZs relevant then? </li></ul><ul><ul><li>Policy: One-country-two-systems (China) </li></ul></ul><ul><ul><li>Trade: treaty benefit exploitation, subsidies </li></ul></ul><ul><ul><li>Capital: special ‘windows’ for FDI </li></ul></ul>Result: today approx. 850 zones exist worldwide SEZ . . . . Before WTO
    • 5. Key Statistics of World’s Free Zones North America Central America 51 Zones Caribbean South America Europe Middle East <ul><li>320 Zones </li></ul><ul><ul><li>US – 213 </li></ul></ul><ul><ul><li>Mexico - 107 </li></ul></ul><ul><li>41 Zones </li></ul><ul><ul><li>Honduras – 15 </li></ul></ul><ul><ul><li>Costa Rica - 09 </li></ul></ul><ul><li>41 Zones </li></ul><ul><ul><li>Colombia – 11 </li></ul></ul><ul><ul><li>Brazil - 08 </li></ul></ul><ul><li>81 Zones </li></ul><ul><ul><li>Bulgaria – 08 </li></ul></ul><ul><ul><li>Slovenia - 08 </li></ul></ul><ul><li>39 Zones </li></ul><ul><ul><li>Turkey – 11 </li></ul></ul><ul><ul><li>Lordan - 07 </li></ul></ul>Contd . . .
    • 6. <ul><li>225 Zones </li></ul><ul><ul><li>China - 124 </li></ul></ul><ul><ul><li>Philippines - 35 </li></ul></ul>Asia Africa Pacific <ul><li>47 Zones </li></ul><ul><ul><li>Kenya - 14 </li></ul></ul><ul><ul><li>Egypt - 06 </li></ul></ul><ul><li>02 Zones </li></ul><ul><ul><li>Australia - 01 </li></ul></ul><ul><ul><li>Fiji - 01 </li></ul></ul>847 Zones Total Zones Countries having Zones does approx 75% of World Business Key Statistics of World’s Free Zones
    • 7. Zones Does Make a Difference . . How? * GDP per Capita 10% 12% 72% 37Lower-middle ($ 765 to $ 3035)* 9% 10% 59% 21 Low income (&lt; $765) 46% 41% 28% 28 High income (&gt; 9385) 74% 75% 42% 102 Countries with Zones 1% 1% 57% 46 Low income 3% 2% 1% 30 Lower-middle 4% 3% 33% 28 Upper-middle 19% 19% 45% 22 High income 26% 25% 39% 126 Countries without zones 10% 12% 62% 16 Upper-middle ($3035 to $9385) 1993 Share world trade 1996 share world trade US+EU export growth 93-96
    • 8. Global Success Positions for Zones <ul><li>Inland market access in open economy - USA, Mexico </li></ul><ul><li>Inland market access in protected markets- UAE </li></ul><ul><li>Export-driven, policy friendly, tax-free foreign investment - Malaysia, China, Taiwan </li></ul><ul><li>Quota-free, preferential market access- Mauritius, Puerto Rico, Jordan </li></ul>
    • 9. <ul><li>Countries with zones have gained in world trade at expense of those without zones </li></ul><ul><li>Zones </li></ul><ul><ul><li>have benefited developing countries most </li></ul></ul><ul><ul><li>Zones helped nine countries to fight poverty </li></ul></ul><ul><ul><li>drove high tech foreign investment in southeast / east Asia </li></ul></ul><ul><li>Treaty/ market access and ownership have been more than tax benefits (US, Taiwan) </li></ul><ul><li>FDI and zone exports have strong linkages </li></ul>Under open trade regime, investment facilitation and services will differentiate zones Salient Inferences about Zones
    • 10. Geographical Dynamics of FDI Complementing factor Technical and skill inputs, specialized suppliers and demanding buyers, support institutions, finance and so on. Ultimately, those nations succeed in particular industries where home environment is the most dynamic, challenging, and stimulates the productions firms to upgrade and widen their advantages over time Traditional Factors <ul><li>Large domestic markets </li></ul><ul><li>Possession of natural resources </li></ul><ul><li>Presence of cheap unskilled or semiskilled labor </li></ul>New Determinants <ul><li>Policy liberalization </li></ul><ul><li>Technological progress in infrastructure (transport, communication and IT) </li></ul><ul><li>Management and organizational factors </li></ul><ul><li>Availability of highly skilled people </li></ul>
    • 11. FDI movement has high correlation with export performance of countries with successful zones – viz. China, Taiwan, Malaysia, Mauritius FDI was concentrated in free zones, export-focused, and free from national regulations, in some cases FDI was taxed lower than domestic investment
    • 12. SEZ . . . .the Context Post WTO The world after 1990s <ul><li>Industry - international production focus </li></ul><ul><li>Multilateral ‘equal-opportunity’ MFN trade </li></ul><ul><li>All countries are lowering barriers to compete for foreign trade and investment </li></ul><ul><li>Regions are forming closed economic groups </li></ul>Today’s Choice zone vs. zone not nation vs. nation What will make FZs relevant now? <ul><li>Policy: national treatment of free zone goods </li></ul><ul><li>Concept of V i.e facilitation- Velocity Volume and therefore Value </li></ul><ul><li>Capital: private ownership (service standards) </li></ul>3
    • 13. Rationale for SEZ . . . . In India To Compete Globally SEZ is the best..?? Provide Restorative and Leading edge S E Z World Wide Max. FDI and Export from Zones MNC’s Destination for Intra Firm Trading Concept of V Velocity, Volume and Value 3
    • 14. What is Special Economic Zone ?
    • 15. What is Special Economic Zone? <ul><li>Definition </li></ul><ul><ul><li>World Wide no Standard Definition exists </li></ul></ul><ul><ul><li>Various nomenclatures used: </li></ul></ul><ul><ul><ul><li>Special Economic Zone </li></ul></ul></ul><ul><ul><ul><li>Economic Processing Zones, </li></ul></ul></ul><ul><ul><ul><li>Free Trade Zones, </li></ul></ul></ul><ul><ul><ul><li>Free Zones, </li></ul></ul></ul><ul><ul><ul><li>Export Promotion Zones, </li></ul></ul></ul><ul><ul><li>Standardization has been done only for customs purpose (Kyoto Convention)   </li></ul></ul>Kyoto Convention . . .
    • 16. As per Kyoto Convention SEZ, Zones having the common features like … <ul><li>Areas enclosed by a fence or wall with supervised entry and exit points </li></ul><ul><li>Import and export from these zones do not attract customs duties and other taxes applying to domestic activities </li></ul><ul><li>All activities taking place inside the zones are considered to be outside the customs territory of the host country </li></ul>Therefore SEZ is bundle of . . .
    • 17. Trading + FTZ EPZ + Integrated Infrastructure Special Economic Zone “ Specifically delineated , duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties &amp; tariffs” Model Industrial Township Excellent Infrastructure Superior Governance Facilitative Environment + + + ICD EOU Dry Port &amp; Duty Free Enclave Free Port + What is Special Economic Zone? Cluster of EOUs &amp; Bonded Area
    • 18. Special Economic Zone ( as defined by EXIM Policy ) <ul><li>A designated duty free enclave and to be treated as foreign territory for trade operations and duties and tariffs. </li></ul>The challenge is to provide Indore SEZ with first World infrastructure in a third World settings.
    • 19. <ul><li>The Primary objective appears to facilitate exports </li></ul><ul><li>Secondary objective could be </li></ul><ul><ul><li>attraction of export-oriented Foreign Direct Investment </li></ul></ul><ul><ul><li>enable Indian entrepreneurs to operate under international conditions </li></ul></ul><ul><li>Tertiary objectives could include creation of global industries and practices which would eventually spill over to the mainland . . . . </li></ul>Key Objectives of SEZ To provide complete business freedom to Multinational Corporations (MNCs), Large business houses, Global Trading Companies and Medium and Small scale Entrepreneurs to be competent in Global Trade
    • 20. Summing up, SEZ to . . <ul><li>Facilitate international transit, conversion and trade of goods without tariffs </li></ul><ul><li>Facilitate export earnings using local content / labour skills </li></ul><ul><li>Attract international investment in trade/ export related activities (through special regulations / privileges) </li></ul>Zones can be ‘restorative’ or ‘leading-edge’ in terms of their regulatory environment and give real boost to foreign trade
    • 21. Step - I SEZ – How to develop <ul><li>Master Planning Exercise. </li></ul><ul><li>Environmental impact assesment studies. </li></ul>
    • 22. Step -2 SEZ – Broad Objectives <ul><li>Surveys / Contouring &amp; Investigation of Site, Economic Zone and Project influence areas </li></ul><ul><li>Prepare Conceptual Plans for for development </li></ul><ul><li>Master Plan and Project Design </li></ul><ul><li>Detailed Engineering </li></ul><ul><ul><li>Architectures </li></ul></ul><ul><ul><li>Structural </li></ul></ul><ul><ul><li>Utilities </li></ul></ul><ul><li>Detailed Cost Estimates </li></ul><ul><li>Objectives of the Proposed Consultancies Services </li></ul>
    • 23. SEZ – Scope of Services <ul><li>Topographical Survey </li></ul><ul><li>Survey of Land Boundary and physical structure at the site </li></ul><ul><li>Counter survey of the entire area </li></ul><ul><li>Soil Survey, soil testing and resistivity survey </li></ul><ul><li>Base Line Data Collection </li></ul><ul><li>SWOT Analysis </li></ul><ul><li>Assesment of facilities required </li></ul><ul><li>Review of current infrastructure </li></ul><ul><li>Vision Statement and Concept Plan </li></ul><ul><li>Detailed Project Engineering (DPE) </li></ul><ul><li>Billing of quantities and detailed cost estimates </li></ul><ul><li>Social and Environemntal Impact Analysis and Rehabilitation plans </li></ul>
    • 24. SEZ – The Master Plan Report <ul><li>Creation of Zone of excellence </li></ul><ul><li>Ensure the Quality of SEZ - Internationally </li></ul><ul><li>Attract International manufacturers and Service Sector </li></ul><ul><li>Master planning for acquired area </li></ul>
    • 25. Vision Master Plan <ul><li>To develop and operate SEZ Indore, a one stop service, of International Standards through technological refinement and improved techniques with skilled professionals, excellent The State of the Art infrastructure facilities with quality products &amp; services at competitive costs, best estate management concepts with an objective to attract and support investment – </li></ul><ul><li>Both to Developer &amp; Entrepreneur </li></ul>
    • 26. The Location The Location
    • 27. Highlights <ul><li>35 Km from Indore </li></ul><ul><li>14.4 Km kms from Mhow </li></ul><ul><li>Located SH-27 Linking Indore and Ratlam </li></ul><ul><li>One lake is proposed for holding the surface </li></ul><ul><li> runoff water and water from canal </li></ul><ul><li>The open area of lake work out 33.51 Acre </li></ul>
    • 28. The Major Components Master Plan <ul><li>Land use Plan </li></ul><ul><ul><li>Detailing the locations and sizes of various land uses </li></ul></ul><ul><li>Land parcel plan </li></ul><ul><ul><li>Showing the sub division of industrial land </li></ul></ul><ul><li>Phasing </li></ul><ul><li>Schematic plans </li></ul><ul><li>Proposed platform levels </li></ul><ul><li>Open space plan </li></ul><ul><li>Road Category </li></ul>
    • 29. The Major Components Master Plan <ul><li>Road Network Plan </li></ul><ul><li>Industrial sub – zoning plan </li></ul><ul><li>Landscape / green area plan </li></ul><ul><li>Design control plan </li></ul><ul><li>Development phasing plan </li></ul><ul><li>Schematic engineering plans </li></ul><ul><ul><ul><li>Grading </li></ul></ul></ul><ul><ul><ul><li>Water supply </li></ul></ul></ul><ul><ul><ul><li>Sewerage </li></ul></ul></ul><ul><ul><ul><li>Power </li></ul></ul></ul><ul><ul><ul><li>Storm water drainage </li></ul></ul></ul><ul><ul><ul><li>Street Lighting </li></ul></ul></ul>
    • 30. The Major Components Master Plan : ZONEs <ul><li>Biotechnology </li></ul><ul><li>Pharmaceutical </li></ul><ul><li>Agro &amp; Food Processing </li></ul><ul><li>Leather </li></ul><ul><li>Green House and Hitech cultivation </li></ul><ul><li>Handicraft and Cottage </li></ul><ul><li>Apparel </li></ul><ul><li>Electronics Components </li></ul><ul><li>Telecom Equipments </li></ul><ul><li>Toy City </li></ul><ul><li>Knowledge Workers </li></ul><ul><li>Machine Tools </li></ul><ul><li>General Engineering </li></ul>
    • 31. Master Plan : The Saleable Area Proposed Land Use % Total area 44.40 19.79 8.51 72.71 3.36 12.58 7.42 3.64 0.29 27.29 100.00 Area Hact 425.69 189.72 81.59 697.00 32.26 120.51 71.21 34.90 2.82 261.70 958.70 Area Acre 1051.45 468.61 201.52 1721.58 79.68 297.65 175.88 86.20 6.97 646.38 2367.96 Description Saleable Area Industrial Land Amenties Roads and Utilities Total Saleable Area Non Saleable Area Amenties Greenery Roads and utilities Water Body / Lake / Canel Existing Structure Total Nonsaleable Area Total Area
    • 32. Master Plan : The Saleable Area Breakup of Industrial Land % Total area 5.52 17.37 4.42 4.93 4.33 12.69 4.31 6.98 4.59 5.42 5.10 5.79 5.65 5.87 7.04 100.00 Area Hact 23.48 73.91 18.80 20.98 18.44 54.00 18.34 29.71 19.55 23.06 21.68 24.62 24.06 25.00 29.94 425.69 Area Acre 57.99 182.55 46.43 51.81 45.54 133.38 45.31 73.39 48.28 56.96 53.56 60.81 59.43 61.75 73.96 1051.45 Description Biotechnology Pharmaceutical Agro &amp; Food Processing Leather Green House and Hitech cultivation Garments Handicraft and Cottage Gems &amp; Jewellery Electronics , Telecom Equipments Electrical Equipments Toy City Knowledge Workers Machine Tools General Engineering Automobile Ancillaries Total Area
    • 33. Infrastructure &amp; Utilities <ul><li>Earthwork </li></ul><ul><li>Compound wall &amp; fencing </li></ul><ul><li>Road Design </li></ul><ul><li>Surface Design </li></ul><ul><li>Sewarage System </li></ul><ul><li>Solid Waste Management System </li></ul><ul><li>Water Supply </li></ul><ul><li>Power Supply </li></ul><ul><li>Telecommunication </li></ul><ul><li>Residential Colony </li></ul><ul><li>Helipad </li></ul><ul><li>Institutional Facilities </li></ul><ul><li>Sports and recreation </li></ul><ul><li>Commercial &amp; CBD </li></ul><ul><li>Rainwater harvesting </li></ul><ul><li>Lake / Summer Storage </li></ul>
    • 34. Location Analysis of MP for SEZ
    • 35. Location Analysis of MP for SEZ <ul><li>Sectors </li></ul><ul><li>Share in India’s economy </li></ul><ul><li>Share in exports </li></ul><ul><li>Structure of exports </li></ul><ul><li>Key factors impeding growth </li></ul><ul><li>Potential </li></ul>
    • 36. World class infrastructure at Industry’s doorstep … SEZ at Indore <ul><li>First greenfield SEZ operational in the country </li></ul><ul><li>Requisite policy and legislative framework- MP SEZ Act.. </li></ul><ul><li>SPV to undertake implementation in PPP </li></ul><ul><li>Fully developed land available for allotment </li></ul><ul><li>PPA signed with NTPC for power </li></ul>… a globally competitive investment destination
    • 37. Specialised infrastructure at select locations … <ul><li>Industrial Infrastructure Development Fund </li></ul><ul><li>Specialised infrastructure </li></ul><ul><ul><li>Crystal IT Park - Indore </li></ul></ul><ul><ul><li>Apparel Parks - SEZ, Indore, Jabalpur </li></ul></ul><ul><ul><li>Food Parks &amp; Agri Export Zones </li></ul></ul><ul><ul><li>Stone Park - Katni </li></ul></ul>… equipping industry
    • 38. Industry Facilitation … <ul><li>High level INDUSTRY ADVISORY COUNCIL under chairmanship of CM </li></ul><ul><ul><li>Representation from Ministers, Departmental heads and Industry </li></ul></ul><ul><ul><li>SINGLE WINDOW through TRIFAC </li></ul></ul><ul><ul><li>INDUSTRIAL FACILITATION ACT to give teeth to the single window </li></ul></ul><ul><li>THREE-TIERED COMMITTEE for speedy disposal </li></ul>… laying down the red carpet
    • 39. Incentives &amp; Concessions … <ul><li>Mega Project Incentives </li></ul><ul><li>Customised packages for mega projects </li></ul><ul><li>Interest rate subsidies </li></ul><ul><li>Industrial Investment Promotion Assistance </li></ul><ul><li>Entry tax exemption </li></ul><ul><li>Stamp duty &amp; registration charge exemptions </li></ul><ul><li>Special incentives for Textiles, Herbal, Food etc. </li></ul>… the icing on the cake
    • 40. The Focus Sectors . . . <ul><li>Ready Made Garments (RMG), Textiles </li></ul><ul><li>Agro Industries ,Food Processing, Herbal </li></ul><ul><li>Electronics , Consumer Electronics </li></ul><ul><li>Medical , Surgical Appliances </li></ul><ul><li>Automobiles </li></ul><ul><li>Information Technology </li></ul><ul><li>Biotechnology, Pharmaceuticals </li></ul><ul><li>Gems &amp; Jewellery </li></ul>… capitalising on MP’s Strengths
    • 41. Advantage Indore
    • 42. SALIENT FEATURES SPECIAL ECONOMIC ZONE <ul><li>S CHEME INTRODUCED IN EXIM POLICY FROM 1.4.2000 </li></ul><ul><ul><ul><ul><li>TO BOOST EXPORTS </li></ul></ul></ul></ul><ul><li>A DUTY FREE ENCLAVE-FOREIGN TERRITORY FOR TRADE OPERATIONS AND DUTIES AND TARIFFS </li></ul><ul><li>N O LICENCE REQUIRED FOR IMPORT </li></ul><ul><li>E XEMPTION FROM CUSTOMS DUTY </li></ul>
    • 43. SALIENT FEATURES SPECIAL ECONOMIC ZONE-II <ul><li>SUPPLIES FROM DTA TO SEZ UNITS TREATED - AS DEEMED EXPORTS </li></ul><ul><li>REIMBURSEMENT OF CENTRAL SALES TAX PAID - ON DOMESTIC PURCHASES </li></ul><ul><li>100% FDI IN MANUFACTURING SECTOR - ALLOWED </li></ul><ul><li>SEZ UNITS MAY BE FOR MANUFACTURING, TRADING OR SERVICE ACTIVITY </li></ul>
    • 44. SALIENT FEATURES SPECIAL ECONOMIC ZONE-III <ul><li>SEZ UNIT TO BE POSITIVE NET FOREIGN EXCHANGE EARNER WITHIN THREE YEARS </li></ul><ul><li>NO CAP ON FOREIGN INVESTMENTS FOR SSI RESERVED ITEMS </li></ul><ul><li>EXEMPTION FROM INDUSTRIAL LICENSING FOR SSI RESERVED ITEMS </li></ul><ul><li>IN-HOUSE CUSTOMS CLEARANCE </li></ul>
    • 45. The Focus Sectors . . . <ul><li>Textiles and Ready Made Garments </li></ul><ul><li>Food Processing </li></ul><ul><li>Electronics / Consumer Electronics </li></ul><ul><li>Medical &amp; Surgical Appliances </li></ul><ul><li>Information Technology </li></ul><ul><li>Bio technology / Drugs / Pharmaceuticals </li></ul><ul><li>Diamond and Jewelry </li></ul>… capitalizing on MP’s Strengths
    • 46. &nbsp;
    • 47. Understanding Trade in the Context of SEZ
    • 48. India in World FDI and Trade <ul><li>FDI inflows US$ 2.3 bn, 1.7% of S-E-SE Asia’s, 0.18% of world FDI inflows </li></ul><ul><li>FDI stock $19 bn, is 1.6% of S-E-SE Asia </li></ul><ul><li>Share of China / HK - 69%, Taiwan, Malaysia, Singapore each 4-8% </li></ul><ul><li>In 2000, exports $ 45 bn , only 0.67% of world trade, 31st largest exporter, 32nd importer </li></ul><ul><li>Export basket differs from key competitors - exports more from low FDI sectors </li></ul>
    • 49. Composition of World Trade, in % Export of higher technology areas are growing faster <ul><li>Fastest Growing Sectors: </li></ul><ul><li>Office and Telecom – electronic </li></ul><ul><li>Auto Industry </li></ul><ul><li>Chemicals </li></ul>
    • 50. Growth Share Matrix of Exports India’s export sector in not in sync with world trends
    • 51. India &amp; World Exports: Mismatch <ul><li>Primary articles and labour-intensive goods account for most of India’s exports </li></ul><ul><li>US, EU, Japan- more than 53% of world imports, also the largest markets for India </li></ul><ul><li>Ten emerging markets, each with $ 40 bn import but India has &lt; 0.5% share - HK,Canada, China, Korea, Australia, Turkey, Taiwan, Thailand </li></ul>
    • 52. India’s EPZ Profile Share of Export : Dubai 60%, China 65% &amp; Mexico 33%
    • 53. New Offer in the form of SEZ Policy
    • 54. SEZ Policy Traditional Offer New Offer Wide range of activities - trading, services, warehousing, SSI items etc Contd. . . Unlimited DTA sales (@ full duty) 50% of exports allowed as DTA Sales @ concessional duty NFEP required to be &gt; 0 NFEP to be 20+% for most products Export proceeds to be realised within 12 months Material can be stocked for 5 years Export proceeds to be realised &amp; repatriated to India within 6 months Material can be stocked for 1 year Retention of full earnings in EEFC a/c allowed Retention of upto 70% earnings in EEFC a/c allowed No customs/ excise duties on goods used for setting up units Duties applicable on goods used to set up units SEZs EOUs/ EPZs
    • 55. Over and above this, primary difference would be in “ Simplified Procedures” and offering “Greater Freedom of Operations” SEZ Policy Traditional Offer New Offer Jewellery units allowed to subcontract work to DTA units Jewellery units cannot subcontract work to DTA units SSI reservation policy not applicable SSI reservation policy applicable 100% FDI automatic FIPB approval required for some FDI No routine customs examination in import &amp; export cargo Customs examination in import &amp; export cargo All imports on self certification Dev Commissioner to attest import of Capital Goods SEZs EOUs/ EPZs
    • 56. Rationale for SEZ . . . . In India To Compete Globally SEZ is the Best Equalizer Provide Restorative and Leading edge S E Z World Wide Max. FDI and Export from Zones MNC’s Destination for Intra Firm Trading Favourable Policy Regime for foreign Business Truly “Single Window” Concept of V Velocity, Volume and Value 3
    • 57. Potential Themes for Indore - SEZ
    • 58. Compound Feed and Solvent Extraction Complex Soya bean meal, an established product from MP <ul><li>An opportunity </li></ul><ul><li>Animal feed, bovine, porcine, poultry and sheep is multi bn $ global industry led by Europe </li></ul><ul><ul><li>Compound feed, growing more than 9% pa </li></ul></ul><ul><ul><li>Global shift in purely vegetable based feeds (mad cow disease – ban on genetic modified feed crop) </li></ul></ul>Potential Positioning for Indore SEZ (GMO – Free) Soya Meal Theme # 1 Compound Animal Feed Complex
    • 59. <ul><li>Soya meal is key raw material animal in feed </li></ul><ul><li>Presently, India exports because domestic industry does not feed expensive feed to cattle </li></ul><ul><li>Feed mills require large capacities - 0.2 mn t pa </li></ul><ul><li>India is a major non - GM soya producer , high demand after EU’s mad cow disease </li></ul><ul><li>Soya meal price $ 170/ MT; feed $ 800/MT </li></ul><ul><li>Meal shipped in bulk loose; feed in branded packs, container cargo </li></ul>“ Compound Animal” Feed Complex . . . Contd. . . Key Elements of Theme
    • 60. <ul><li>Benefits: </li></ul><ul><ul><li>value addition close to source - quality, wastage, large captive base of premium material </li></ul></ul><ul><ul><li>higher realizations for suppliers, better prices for feed mills as well </li></ul></ul><ul><ul><li>shipment mode changes- FCL not bulk cargo, removes bottlenecks of the state </li></ul></ul><ul><li>Potential for 10 - 20 feed mills (high FDI) </li></ul>Compound Animal Feed Complex
    • 61. Ware housing centre for Imports’ items, with minor value add. Incentives offered in SEZ policy Has rail links with port cities too Ideal for Inbound air-land logistics Indore SEZ as Trading &amp; Logistics Hub Centre of India, ideal logistics hub Indore Trading Hub
    • 62. Why Inbound Hub ? <ul><li>Most of India’s branded electronic hardware imports are by air- Delhi / Mumbai airport </li></ul><ul><li>Foreign companies not allowed trading, and appoint agents for warehousing </li></ul><ul><li>SEZ policy allows FDI, sales to bonded warehouses inside India, defers duty payment till last point, and control of goods </li></ul>International Cargo Airport is the key to success for this theme Act as Import Hub for Electronic Goods Unorganised Way (Benami) Discovered Opportunity in SEZ Policy
    • 63. <ul><li>Cross-docking &amp; Consolidation Centers </li></ul>Warehousing Hub Model Industrial Township Excellent Infrastructure Superior Governance Facilitative Environment + + + ICD Strategic Location and Connectivity Real Time Bar coding Value-Added Services Material Handling Facility Management Inventory Manage-ment Trading HUB Special Economic Zone
    • 64. SEZ offer…….. The various components of the Hub, seamlessly integrate the different elements of the supply chain Raw Material Suppliers Inbound Transportation Manu- facturing Inventory Deployment Outbound Transportation Customer’s Customers Integrated Information Systems
    • 65. SEZ offer…….. <ul><li>INFRASTRUCTURE </li></ul><ul><li>Air Cargo Terminal </li></ul><ul><li>Multi-Purpose Terminals </li></ul><ul><li>Cross Docking &amp; Consolidation Centres </li></ul><ul><li>Central Distribution Centres </li></ul><ul><li>Distriparks </li></ul><ul><li>Cold Storage </li></ul><ul><li>Leasing of Warehouses &amp; Yard Space </li></ul><ul><li>Transit back up &amp; Warehouses </li></ul><ul><li>SERVICES </li></ul><ul><li>Warehousing </li></ul><ul><li>Transport &amp; Distribution </li></ul><ul><li>Bar Coding, Fumigation, Quality Assurance &amp; Control </li></ul><ul><li>Inspection &amp; Surveying </li></ul><ul><li>Pick &amp; Pack and repackaging </li></ul><ul><li>Inventory Management </li></ul><ul><li>Single Point Custom Clearance </li></ul><ul><li>SERVICE PROVIDERS </li></ul><ul><li>Transporters - Inbound &amp; Outbound </li></ul><ul><li>3PL Providers </li></ul><ul><li>Freight Forwarders </li></ul><ul><li>Consignees </li></ul><ul><li>Trade custom agencies </li></ul><ul><li>Hauliers </li></ul><ul><li>TECHNOLOGY </li></ul><ul><li>Electronic Data Interchange (EDI) </li></ul><ul><li>Computer Integrated Terminal Operations System </li></ul><ul><li>Track &amp; Trace Systems </li></ul><ul><li>Vehicle Scheduling &amp; Transportation Systems </li></ul><ul><li>Inventory &amp; Warehouse Management Systems </li></ul>
    • 66. Summing up Key Themes for SEZ GM Free, Compound Feed Complex SEZ as Trading – Logistics Hub for India SEZ – Mettalurgical Export Hub SEZ as Power Producing Machine Stone Park with Emphasis on Granite “ Fabric Complex” in SEZ Complimentary Industries Offering Cluster Advantages Gems and Jewellery Leather Goods Textiles / Agro Industry Handicrafts Traditional Competency
    • 67. The Way Forward
    • 68. <ul><li>Enacted IN-SEZ Authority (tax, revenue function) </li></ul><ul><li>Created under the ULB or delegate to IN-SEZ: </li></ul><ul><ul><li>Zone Municipal Corporation, for delegation of municipal functions- especially public health, hygiene, pollution control, factories, labour … </li></ul></ul><ul><ul><li>Law and Order Enforcement Authority </li></ul></ul><ul><li>Administrative and Management Authority </li></ul><ul><ul><li>Zone Governing Council- Zone Commissioner, Municipal Representative, Users Representative and jurists on visitation </li></ul></ul>Change in Mindset – Zone will be completely an Independent Authority
    • 69. Infrastructure build up <ul><li>Completion of Land acquisition </li></ul><ul><li>Initiate action for excellent connectivity / linkage </li></ul><ul><ul><li>Rail : Indore / Pitampur - Ratlam Broad Guage link </li></ul></ul><ul><ul><li>Expedite the process of setting up an International Airport </li></ul></ul><ul><ul><li>Dedicated berth at Kandla and JNPT </li></ul></ul><ul><ul><li>Quality of road network to be upgraded </li></ul></ul>
    • 70. Address Gray Areas in SEZ policy with MOC <ul><li>Creation of SEZA of India for WTO compatibility </li></ul><ul><li>Status on income tax exemption after 2010 </li></ul><ul><li>Companies Act Registration for zone units (Why co. act law should be applicable) </li></ul><ul><li>Transfer of ownership - Tax Implications </li></ul><ul><li>Rules of origin administration </li></ul><ul><li>No clarity on exit clearances procedures </li></ul><ul><li>Predictability and continuity of policy features, specially income tax and DTA Sale </li></ul>Ministry of Commerce “The Policy Maker” has to address these issues to gain investor’s confidence Further Considerations
    • 71. Lobbying Against Negatives - SEZ Policy <ul><li>Full customs duty on DTA sales (tax on services and value added within country) to be exempted </li></ul><ul><li>Notify exit clearances w.r.t Income Tax </li></ul>Internationally duty is levied only to the extent it is saved by way of exemption and not on value added in the zone (China, US…)
    • 72. Zone Partnerships <ul><li>Strategic Partners – Private Developer </li></ul><ul><li>Module Developers </li></ul><ul><ul><li>Power supply </li></ul></ul><ul><ul><li>Telecom </li></ul></ul><ul><ul><li>Water and drainage </li></ul></ul><ul><ul><li>Warehousing and cargo handling </li></ul></ul><ul><ul><li>Zone transport </li></ul></ul><ul><ul><li>Security and clearances </li></ul></ul><ul><li>Theme Partners </li></ul><ul><li>Investor’s memorandum – Zone facilities and concession </li></ul>Formulation of Legal Agreements and Contract Standard
    • 73. <ul><li>Adopt the Zone Vision; Theme and Goals; Standards and Guarantee </li></ul><ul><li>Zone Ambassadors in key regions </li></ul><ul><li>Market internationally – Strategic Key Accounts </li></ul>Investor Targeting
    • 74. <ul><li>Departments: </li></ul><ul><ul><li>Zone Master Plan </li></ul></ul><ul><ul><li>Investors Facilitation/ Marketing </li></ul></ul><ul><ul><li>Facilities management </li></ul></ul><ul><ul><li>Certification, Statistics and Compliance </li></ul></ul><ul><ul><li>Zone Inspectorate (licensing, safety, municipal) </li></ul></ul><ul><ul><li>Dispute Settlement and Grievance Redressal </li></ul></ul>Administration &amp; Management Drawing up blue print for Organisation of IN-SEZ
    • 75. Road so far . . . . Rationale for SEZ Indian Context SEZ Policy Positioning Plank Phase-1 International Context - SEZ Location Analysis
    • 76. Phase II <ul><li>Framework for SEZ </li></ul><ul><li>Industries for Indore SEZ </li></ul><ul><li>Demand - selected Themes and Industries </li></ul><ul><li>Configuration of SEZ (Social and Physical infrastructure) </li></ul>

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