The end of this decade is a good time to ruminate on all these acronyms we have been tossing at you over the last few years; and how, if at all, they have made a difference.
SEZ (Special Economic Zone), SIR (Special Investment Region) are amongst the major initiatives aggressively heralded by the administration as growth engines, in a bid to boost rapid industrial development.
Between 2004 and 2008 60 new SEZs have been given in principle approval, with great impetus on manufacturing. As per the latest information available, 33 SEZs have been finally notified. Of these, only four have commenced operations.
Before the global economic downturn in 2008, SEZs were hot properties for large-sized industrial investments. Land was being doled out, with lucrative tax exemptions and largely export oriented. Industry swooped in.
The main buzz at VGGIS 2007 was SEZ. Every company worth reckoning in the market wanted an
SEZ associated to its name.
Announcement of new SEZs were ‘leaked’ out at the rate of saucy Bollywood scandals; and treated at par. Real estate, IT, education, tourism, chemical, pharmaceutical and even sports… we have them all.
When the American and European markets collapsed, along went our West-looking SEZ story. At least five SEZs have been withdrawn.
No new SEZs have been announced in the last two years and even now as the dust of downturn is lifting, the acronym has not returned in India Inc’s priorities.
“The shakeout is normal,” Prof Koshy says. “Businessmen get into it to exploit the loopholes in a policy. Eventually, only the serious players remain, the fringe players drop out,” the marketing guru points out.
GIFT — Gujarat International Finance Tec-City was announced in 2007 as an ambitious and aesthetic conglomerate of buildings for high-end business offices - a demand expected to be fuelled by the MoUs signed in the consecutive VGGIS.
Almost four years after the announcement, the construction is now expected to commence in 2011.
Source : dnaindia.com