Govt SEZs asked to have 10% space for small units

The Commerce Ministry has directed the seven government-run special economic zones (SEZs), including Kandla, Mumbai and Noida, to reserve 10 per cent space for small units.

"...The Development Commissioners (DCs) of the central government SEZs may ensure that preference is given to the SSI units while allotting space in the special economic zones," the ministry said in a directive to the SEZ heads.

The preference to SSI units should also be given in sector specific SEZs in IT/ITeS, which have been asked to set up incubators with at least 200 seats.

The DCs have been asked to review the progress in this regard every month.

Small scale industries (SSIs) have complained that they have to bear high lease rentals for setting up units in private SEZs.

Of the 100 operational SEZs, seven are owned by the central government. These tax free enclaves were promoted much before the liberalised SEZ policy involving private sector came into 2006.

The seven government-owned SEZs are in Visakhapatnam, Kochi, Kandla, Mumbai, Noida, Falta and Indore.

"The move will encourage micro, small and medium scale industries to set up more and more units in SEZs and create more and more employment," Export Promotion Council for EOUs and SEZ units Director General L B Singhal said.