SEZ: Special Economic Zone Projects 2006: USD 100 Billion India Potential© © Dr Rajesh Khajuria MBA, PhD (Management), CMC, FIMC, MIoD TEAMPro Limited London UK Vadodara Gujarat INDIA

Dr R Khajuria, TEAM2 Acknowledgements SEZ Board of Approvals, Government of India Government of Gujarat. Currency in India is INR or Rs (Rupees) 1 US $ = Rs 45 approximately 1 UK £ = Rs 87 approximately 1 Crore = 10 Million = 100 Lacs 1 Lac or Lakh = 100, Lacs = 1 Million

Dr R Khajuria, TEAM3 India SEZ Potential Indias latest strategy to attract investments in infrastructure, manufacturing, services and trade is by encouraging entrepreneurs to set up Special Economic Zones (SEZ) all over India SEZ are infrastructure projects offering developed land / plots or buildings to SMEs and large companies wishing to set up manufacturing, trading or service operations SEZ can be set up in public, private or public- private partnerships

Dr R Khajuria, TEAM4 SEZ Benefits A designated duty free enclave, treated as foreign territory for trade operations and duties and tariffs 100% Tax-free Import, Export, Excise Duty and Sales Tax (Norms) 100% Income Tax Free to all Units in SEZ for 5 years, 50% free for next 5 years on Reinvestment of Profits 100% Foreign Investment permitted No Licence Required for manufacturing

Dr R Khajuria, TEAM5 SEZ Laws in India Main Laws governing creation and management of SEZ in India are: Special Economic Zones Act, 2005 Special Economic Zones Rules, 2006 State specific Laws in many States of India Permissions are given fast and liberally at present

Dr R Khajuria, TEAM6 SEZ Project Size 1,000 Hectares Land (minimum) for a Multi- Product SEZ No specification of land size for a Product (Industry)-specific SEZ like IT SEZ or Food Processing SEZ or Engineering SEZ Investments of about Rs 200,000 Crore (USD 45 Billion) is coming up in 75 approved SEZs all over India Total Investment of USD 100 Billion is expected in 150 SEZ applied for (March 06)

Dr R Khajuria, TEAM7 SEZ Project Ideas TEAM offers hot project ideas in SEZ sector in following part of presentation It is possible to set up SEZ in almost any product / sector in most of the States of India Land and Permissions take about 6 months TEAM is well-equipped to advise to conceive, plan, design, seek permissions, collaborate, raise funds, market and undertake project implementation of SEZ projects in India

Dr R Khajuria, TEAM8 Market & Skill-based Value Added SEZ (Special Economic Zone) High Priority SME Sectors: Garments (Rs 100 Invest / 1000 Crore Export) Jewellery (Rs 500 / 5000 Crore, Export-oriented) Auto Parts (Rs 500 / 1500 Crore Sales) Food Processing (Rs 500 / 2000 Crore, Export- oriented)

Dr R Khajuria, TEAM9 Market & Skill-based Value Added SEZ Healthcare and Pharma Park (500 / 2000 Crore, Export-Oriented) Rs Crore Investment in SEZ Infrastructure Rs 100 – 2000 Crore Investment by 100 to 500 Units / SMEs Rs 500 to 5000 Crore Export / Sales from SEZ Units

Dr R Khajuria, TEAM10 Knowledge City Knowledge City / Park / SEZ: SME and Large sectors: eBusiness / IT / ITES* Park (Rs 100 / 1000 Crore Export) Biotechnology Park (Rs 100 / 500 Crore Export) Set up at Savli by Govt of Gujarat Information Technology Enabled Services / BPO / KPO / RPO – Research Process Outsourcing

Dr R Khajuria, TEAM11 Energy SEZ Energy Park (Rs 2000 / 3000 Crore Sales) Solar, Wind, Biomass, etc Alternative Energy machinery and equipment manufacturing Gas based Power Plant manufacturing Small Hydro Power (25 MW) plant manufacturing

Dr R Khajuria, TEAM12 SEZ Benefits A designated duty free enclave, treated as foreign territory for trade operations and duties and tariffs. 100% Tax-free Import, Export, Excise Duty and Sales Tax (Norms) 100% Income Tax Free to all Units in SEZ for 5 years, 50% free for next 3 years… 100% Foreign Investment permitted No Licence Required for manufacturing

Dr R Khajuria, TEAM13 SEZ Project General SEZ or Product specific SEZ Manufacturing, Trading and Service Units allowed 200 to 1000 Hectares Land 100 to 500 Plots, N.A. Roads, Security 24/354 Power, Water Green Projects (No Pollution) Warehouses, Transport, Banks

Dr R Khajuria, TEAM14 Permissions Application to Chief Secretary of State State Govt commitment Sate Govt forwards to Department of Commerce, Govt of India Notification issued as SEZ Single Point Clearance to all Units coming to SEZ

Dr R Khajuria, TEAM15 SEZs in Gujarat / India Kandla SEZ (KAFTZ converted) Surat, Sachin (Dry) Dahej Port Pozitra Port Mundra Port (Adani) Jamnagar SEZ (Reliance) About 120 SEZ in India permitted since policy in 2000 – 75 permitted by SEZs in operation in India, 50 coming up

Dr R Khajuria, TEAM16 Thank You! TEAMPro Limited, London T. +44 (0) (Sunil) TEAM Projects & Consultants, Vadodara Gujarat India T (0) E: Web: