KCCI urges to set up SE zones
The Newindpress.com
Friday July 14 2006 11:26 IST
HUBLI: The Karnataka Chamber of Commerce and Industry, Hubli urged the State Government to accord Special Economic Zone status to the twin cities of Hubli-Dharwad to boost prospective IT industries in the region.
Mahendra Ladhad, KCCI secretary said on Thursday that around seven IT industries have expressed their willingness to locate themselves in the twin cities. But one of their demands was that it should be declared as Special Economic Zone.
Their demands are for the simple reason that SEZ bears many incentives, reliefs, rebates like income tax exemptions, free excise duty, sales tax holiday, exemption of state levies.
Further he said that SEZ areas ought to be treated as foreign territory, custom clearances, SEZ becoming outsourcing units for foreign countries, retaining 100 per cent export proceeds in foreign currency for units falling under SEZ, enabling foreign companies to set up in SEZ without incorporating afresh in India, so on and so forth.
He said the SEZ can be set up either by private developers or a State agency like the Karnataka Industrial Area Development Board.
"In view of the urgency of the matter, it is better if the State Government takes the initiative and sets up SEZs for IT enabled services through KIADB."
He noted that as per the Central Government norms, SEZ for IT and ITES require a minimum of 10 hectares and 1 lakh sq mts of built up area. Accordingly, KIADB must immediately acquire the required land and send the proposal to the Centre.
In Karnataka, KIADB has already set up and is in the process of setting up SEZ in several places, namely Hassan (textiles), Shimoga (engg industries), Mangalore (IT and ITES), Ladhad said and added that unfortunately, there are no SEZs proposed for North Karnataka.
He expressed concern that there was a possibility that the Government of India would limit the number of SEZs to 150, which is fast nearing. This calls for immediate attention of the State Government, lest, another opportunity for the economic development of Hubli-Dharwad region is lost.
