Surat SEZ exports at a new high

For the first four months from April to July 2003 SurSEZ achieved a turnover of Rs 102 crore against the targeted Rs 500 crore for 2002-03.

"We are all set to exceed the target," chairman S N Sharma said. SurSEZ is located just half a km from the Sachin Railway Station, on the southern periphery of Surat City.

SurSEZ has issued 112 letters of permission to companies dealing in diamond, jewellery, engineering, textile, pharma, biotech, laser machinery, life saving medical equipment.

Of these, 48 units have already started operating. While 23 are manufacturing units, 25 are in the trading sector.

Himson Engineering Ltd, Suraj Diamonds, Geetanajali Exports (manufacturers of the Nakshatra brand of diamonds and Gili Jewellery), Barmecha Impex (an Israel based diamond cutting and polishing firm), Sky Industries (the largest manufacturers of narrow fabrics), Peass Engineering, Zytex (a bio-tech firm), Marigold which manufacturers steel utensils, Adorn Goelli, Sahjanand Medical, Sahjanand Laser Technology, Laser SOS, R. Ramesh and Company and Sykes Industrial Pumps of Australia are some of the units based in the SEZ.

In the Surat SEZ, basic infrastructure is provided such as developed land for construction of factory shed, roads, power, water supply and drainage.

In addition, custom clearance is arranged within the zone at no extra cost. Provision is made for locating overseas banking Unit and post office facilities and also offices of clearing agent in the service centre of the zone.

"Surat Inland Container (ICD) is next to the Surat Special Economic Zone, so even the custom clearance is hassle free", Sharma said.

SurSEZ offers many benefits to unit holders. Some of the tax benefits include nil import duty, nil central excise duty, nil central sales tax, nil state sales tax, nil state purchase tax, nil stamp duty and nil octroi.

No income tax for five years from beginning of operations from the zone and 50 per cent exemptions for the next two years.

Goods and services going into the SurSEZ are from the Domestic Tariff Area (DTA) shall be treated as export and goods coming from the SEZ area shall be treated as if these are being imported.

All services including telephone and courier rendered to a unit in SEZ are exempted from Service Tax.

Similarly, services provided by one SEZ unit to another SEZ unit would also be eligible for exemptions.

Similarly SurSEZ units can opt for duty free imports including capital items and there is no physical examination of goods by the Customs Department.

According to N K Gaur, chief executive officer, SurSEZ has an excellent location on the golden corridor.

SurSEZ is in the centre of highly industrialised belt stretching from Ahmedabad to Vapi and it is well connected with major ports, rail and road and with efficient transportation and telecommunications facilities.

The Magdalla seaport and the airport are hardly 15 kms away. Power, water and all other facilities are in position and ample skilled labour is available with excellent work culture.

"There is a substantial saving in project cost (30-40 per cent), working capital (30 per cent) and cost of production (up to 30 per cent) as compared to a DTA unit", Sharma and Gaur said.

There is also savings on cost of power and fuel as all units located in SurSEZ are exempted from electricity duty and hence getting power supply at comparatively cheaper rates.

SurSEZ got another boost with the announcement of the new exim policy on March 31st this year. According to the scheme, units can be set up in SEZs for manufacturing, trading and/or servicing activity.

All the import/export operations of the SEZ units will be on self-certification basis.

The units in the zone have to be a net foreign exchange earner but they shall not be subjected to any pre determined value addition or minimum export performance requirements.

One hundred per cent sales in domestic tariff area is allowed subject to payment of usual duties.

"SurSEZ provides a trouble free congenial and investment friendly environment where units - both Indian and foreign can manufacture their products at internationally competitive prices for exports or sale to the DTA," Sharma stated.

The entrepreneurs of Surat and Gujarat and from various parts of the country including foreign direct investment is coming on a steady basis and the zone will be working on its full capacity shortly, he added.