Commerce min prepares paper on SEZ concerns

Madhusudan Prasad, additional secretary, department of commerce, was speaking in Chennai today

The Union ministry of commerce has prepared a comprehensive paper on the concerns of the promoters of and companies in Special Economic Zones (SEZs), and of exporters.

On the sidelines of the Madras Export Processing Zone (MEPZ) export excellence awards function here on Saturday, Madhusudan Prasad, additional secretary in the ministry, said a meeting had been called with exporters and developers to know their concerns. "We want to know where the shoe is pinching and what changes is needed. Based on which, we prepared a comprehensive paper," he said.

This was now under consideration and major recommendations from this would be finalised soon, he said, without sharing details.

On behalf of the ministry, he also called for exporters to do more. At present, exports are not matching imports. "Its a matter of great concern, which leads to a trade balance deficit and a widening current account deficit," said Prasad.

Exports, he said, were essential in the value chain and for the nation to grow. As India gets more integrated, we look at increasing exports to maintain growth momentum, said Prasad.

A K Bamba, development commissioner, MEPZ, said exports from SEZs in Tamil Nadu had risen 65 per cent in the five-odd years since the global economic slowdown began. Excluding information technology, the growth was 30 per cent. In terms of jobs, the growth was 21 per cent. Overall, 263,000 people are employed, of which 38 per cent were women, he said.

SEZs in Tamil Nadu accounted for an export turnover of Rs 50,115 crore in 2011-12. Of this, units in the MEPZ accounted for Rs 10,688 crore.