chapter iv origin and growth of sezs in...

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CHAPTER – IV

ORIGIN AND GROWTH OF SEZs IN INDIA

After the enactment of SEZ Act, 2005, there has been a great

increase in the number of SEZs in India. The present chapter deals

with the research problem whether there is a concentration of

formally approved, approved in principle, and notified SEZs in few

states and few sectors of the economy in India. An attempt has

been made to examine the origin and growth of SEZs not only in

India but the world over. The state-wise, sector-wise, type-wise and

size-wise distribution and composition of formally approved,

approved in principle, and notified SEZs in India has also been

discussed. Further, the chapter analyses the land allocation to

SEZs according to their type and size.

4.1 Evolution of SEZs: Global Scenario

Free zones have existed for centuries. These were originally

established to encourage trade and mostly took the form of

countrywide zones located on international trade routes. Examples

include Gibaltar (1704), Singapore (1819), Hong Kong (1848),

Humburg (1888) and Copenhagen (1891) (World Bank, 2008).

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After the World War-II, many developing countries followed

the path of economic and social development through the process

of establishment of EPZs/SEZs. Several EPZs were set up in

coastal areas as these countries were benefited by way the receipt

of high level of resources and tax revenue. The first EPZ was

established in Ireland to liberalize trade in the year 1959.

The number of zones, especially EPZs have grown

dramatically, particularly over the last decade. Before the 1970s,

most zones were clustered in industrialized countries, primarily in

Western Europe. Inspired by the performance of the first modern

industrial free zones in Shannon, Ireland in 1959, a number of

developing countries, mainly in East Asia and Latin America

initiated EPZ programmes. In the 1980s the pace of zone

development increased and expanded to new regions including

South Asia (Bangladesh, Pakistan) South America and

Sub-Saharan Africa (Maurirrius).

SEZs as a concept started with China, after economic reforms

of 1978. Deng Xiaoping was the father who established SEZs in

China. Spain implemented Special Zones similar to SEZs of today

in 1929, for the first time to process the domestically available raw

material for export. The first zone, under the name of SEZ was

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established in Shenzhen, a small fishing village located in the

subtropical part of China. In the early years of 1980s, Special

Economic Zones were established in Zhuhai and Shantaou in

Guandong Province on the southeast coast of China. The province

of Hainan, located in southernmost part of China was designated

as Special Economic Zone in 1988. The zones were structured to

attract foreign capital, technology and manpower which could help

strengthen the growing economy and develop an industrial base

that served as a pilot project for other regions. Today, these zones

play a vital role in China’s economic growth as most business

activities take place here. The major sectors in China’s SEZs are

high-tech industries, ranging from electronics to automotive and

biotech manufacture (Mittal, 2007). The success achieved by the

Chinese economy provoked the other developing countries to follow

the same model for faster growth. The countries include Brazil,

Russia, India, Jordon, Philippines, Pakistan, Poland, Iran, etc.

When IMF and the World Bank picked up the idea of SEZ, the

world scenario changed wholly. Between 1975 and 2006 the

number of SEZs increased from 79 in 25 countries to about 3500

in 130 countries as highlighted in Table 4.1.

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Table 4.1: Increase in the Number of SEZs Over the Years in the World

Year 1975 1986 1997 2002 2006

No. of Countries having

SEZs

25 47 93 116 130

No. of SEZs 79 176 845 3000 3500

Source: Adopted from ILO (2007).

4.2 Evolution of SEZs: Indian Scenario

India has taken several initiatives to boost its exports since

the 1960s. Some of these initiatives have been quite successful,

some have failed, and others have been indifferent. Notable among

these are:

Export Processing Zone (EPZ) policy (1965)

Export-oriented Units (EOU) policy (1980)

Export-oriented Hardware Technology Park (EHTP) policy

(2000-01)

Export Promotion Capital Goods (EPCG) policy (2000-01)

Free Trade Zone (FTZ) policy (1999).

In India, the first zone was set up in Kandla as early as 1965. It

was followed by the Santacruz EPZ which came into operation in

1975. Thereafter, six more EPZs were set up in the country. These

were at Noida (Uttar Pradesh) 1986, Falta (West Bengal) 1986,

Cochin (Kerala) 1986, Chennai (Tamil Nadu) 1986, Visakhapatnam

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(Andhra Pradesh) 1994, and Surat (Gujarat) 1994. The EXIM

policy, 2000 launched a new scheme of Special Economic Zones.

Under this scheme, EPZs at Kandla, Santacruz, Cochin and Surat

were converted into SEZs. In 2003, other existing EPZs namely,

Noida, Falta, Chennai and Visakhapatnam were converted into

SEZs (Aggarwal, 2004). The detailed information of EPZs converted

into SEZs is given in Table 4.2.

Table 4.2: Conversion of EPZs into SEZs

S.No.

Name of theSEZ

Name of theDeveloper

Type Date ofConversion(EPZ to SEZ)

Year ofCommencement

of Operation

Area(in

Acres)1. Kandla SEZ

(Gujarat)Set up by the

CentralGovernment

Multi-product 1.11.2000 1965 1000

2. SEEPZ-SEZ(Maharashtra)

Set up by theCentral

Government

Electronicsand Gems &

Jewellery1.11.2000 1975 93

3. Noida SEZ(Uttar Pradesh)


Government

Multi-product 1.01.2003 1986 310

4. Madras SEZ(Tamil Nadu)


Government

Multi-product 1.01.2003 1986 261

5. Cochin SEZ(Kerala)


Government

Multi-product 1.11.2000 1986 103

6. Falta SEZ(West Bengal)


Government

Multi-product 1.01.2003 1986 280

7. VisakhapatnamSEZ (AndhraPradesh)


Government

Multi-product 1.01.2003 1994 360

8. Surat SEZ(Gujarat)

Diamond &Gem

DevelopmentCorporation

Multi-product

1.11.2000 1994 100

Source: Calculations are based on the data obtained from Ministry of Commerce &Industry, Department of Commerce, Government of India.

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There are 19 functional SEZs in the country which were set

up prior to SEZ Act, 2005. The detailed information of these 19

SEZs is summarized in Table 4.3.

Table 4.3: Functional SEZs which were Set up Prior to SEZ Act, 2005

S.No.

Name of theSEZ

Name of theDeveloper

Type Date ofConversion

Year ofCommencement

of Operation

Area(in

Acres)1. Kandla SEZ

(Gujarat)Set up by the

CentralGovernment

Multi-product

Converted fromEPZ to SEZ on

1.11.20001965 1000

2. SEEPZ-SEZ(Maharashtra)


Government

Electronicsand Gems &

Jewellery


1.11.20001975 93

3. Noida SEZ(Uttar Pradesh)


GovernmentMulti-

product


1.01.20031986 310

4. Madras SEZ(Tamil Nadu)


GovernmentMulti-

product


1.01.20031986 261

5. Cochin SEZ(Kerala)


GovernmentMulti-

product


1.11.20001986 103

6. Falta SEZ(West Bengal)


GovernmentMulti-

product


1.01.20031986 280

7. VisakhapatnamSEZ (AndhraPradesh)


GovernmentMulti-

product


1.01.20031994 360

8. Surat SEZ(Gujarat)

Diamond &Gem


Multi-product


1.11.20001994 100

9. Jaipur SEZ(Rajasthan)

RajasthanState

IndustrialDevelopmentCorporation

Gems &Jewellery

Notified on1.7.2003

2004 110

10. Indore SEZ(MadhyaPradesh)

M.P. StateIndustrial


Multi-product

Notified on1.8.2003

2004 2600

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11. Jodhpur SEZ(Rajasthan)

RajasthanState

IndustrialDevelopment& InvestmentCorporation

Ltd.

Handicrafts Notified on8.9.2003

2005 180.94

12. MoradabadSEZ(Uttar Pradesh)

U.P. StateIndustrial


Ltd.

Handicrafts Notified on30.9.2003

2004 421.56

13. ManikanchanSEZ(West Bengal)

West BengalIndustrial

Corporation

Gems &Jewellery

Notified on2004 2004 5

14. Mahindra City,Chennai(Tamil Nadu)

M/s MahindraIndustrialPark Ltd.

IT,Hardwareand Bio-

infomatics

Notified on26.10.2004 2005 665.68


M/sMahindraIndustrialPark Ltd.

Apparel andFashion

accessories

Notified on26.10.2004 2005 86.71


M/s MahindraIndustrialPark Ltd.

AutoAncillaries

Notified on26.10.2004 2006 125.87

17. Salt LakeElectronic City,Kolkata(West Bengal)

M/s WIPROLtd.

Softwaredevelopment

and ITenabledservice

Notified on18.3.2005

2005 16

18. Surat ApparelPark (Gujarat)

GujaratIndustrial


ApparelNotified on23.6.2005 2006 139.97

19 Nokia SEZ(Tamil Nadu)

M/s NokiaIndia Pvt.

Ltd.

IT Hardware Notified on17.8.2005 2006 206


After the implementation of SEZ Act, 2005, there is a fast

increase in the number of formally approved, approved in principle,

and notified SEZs in India. As on 29th April, 2009, there were 578

Table: 4.3 (contd.)

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formally approved, 146 approved in principle, and 335 notified

SEZs in India. An increase in the number of notified SEZs over the

years is shown in Table 4.4.

Table 4.4: Increase in the Number of Notified SEZs in India Over the Years

Year No. of Notified SEZs Percentage increase over the

Previous Year

2006 57 -

2007 187 228.07

2008 275 47.06

2009* 335 21.82

Source: Calculations are based on the data obtained from Ministry ofCommerce & Industry, Department of Commerce, Government ofIndia.

Note: * Up to 29 April, 2009.

The number of notified SEZs increased from 57 in 2006 to

187 in 2007 with a percentage increase of 228.07. This sharp

increase was due to the reason that the enactment of SEZ Act,

2005 provided various facilities and incentives to the developers of

SEZs. The table further reveals that the number of notified SEZs

increased from 275 in 2008 to 335 in April, 2009 with the

percentage increase of 47.06 and 21.82 respectively.

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4.3 State-wise Distribution of SEZs

The SEZ scheme has generated overwhelming response

amongst the investors, both in India and abroad. Since the SEZ

Act, 2005 and the SEZs Rule, 2006 came into effect on 10th

February, 2006, as many as 578 formal approvals spread over 18

states, 4 UTs and 28 sectors of the economy have been issued.

Besides, there have been 146 approved in principle spread over 14

states, 1 UT and 25 sectors of the economy. Out of 578 formal

approvals, notifications were issued in respect of 322 SEZs as on

10 January, 2009 (Government of India, 2009).

State-wise distribution of SEZs provided in Table 4.5 shows

that Maharashtra attracted maximum number of SEZs.

Maharashtra leads the all other states as it has got formal approval

for 111 SEZs which is 19.20 per cent of the total formally approved

SEZs, followed by Andhra Pradesh, Tamil Nadu, Karnataka,

Gujarat and Haryana with 103 (17.82 per cent), 69 (11.94 per

cent), 52 (9.0 per cent), 50 (8.65 per cent) and 46 (7.69 per cent)

SEZs respectively. Thus, these six states put together constitute

about 75 per cent of the total formally approved SEZs. These SEZs

are approved in 18 states and 4 UTs. There are no formally

approved SEZs in states like Bihar, Jammu & Kashmir, Himachal

Pradesh, Assam, Mizoram, Sikkim, Manipur, Arunachal Pradesh,

Meghalaya, Tripura, etc.

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Out of 146 SEZs approved in principle, 36 belong to

Maharashtra, which is 24.66 per cent of the total SEZs approved in

principle, and followed by Tamil Nadu, Haryana, Gujarat and

Rajasthan with 18 (12.33 per cent), 17 (11.64 per cent), 11 (7.53

per cent) and 11 (7.53 per cent) SEZs respectively.

If we combine both the formally approved and approved in

principle SEZs (FA+AP) then Maharashtra is at the top with 147

SEZs out of 724 SEZs which is 20.30 per cent of the total formally

approved and approved in principle SEZs. Andhra Pradesh appears

at the second place, while Tamil Nadu, Haryana, Gujarat and

Karnataka occupy the third, fourth, fifth and sixth place with 107

(14.78 per cent), 87 (12.02 per cent), 63 (8.70 per cent), 61 (8.43

per cent), 61 (8.43 per cent) SEZs respectively.

Out of 578 formally approved SEZs, notification has been

issued to 322 SEZs. Andhra Pradesh got maximum notified SEZs,

which is 21.22 per cent of the total notified SEZs. As many as

55 (17.08 per cent) SEZs are notified in Maharashtra,

49 (15.22 per cent) in Tamil Nadu, 30 (9.32 per cent) in Haryana

and 27 (8.39 per cent) in Gujarat. These five states put together

constitute about 70 per cent of the notified SEZs. Table 4.5 shows

the state-wise distribution of SEZs.

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Table 4.5: State-wise Distribution of SEZs(As on 10 January, 2009)

Name of the State FormallyApproved

SEZs

Approved inPrinciple

SEZs

FA+AP NotifiedSEZs

Andhra Pradesh 103(17.82) 4(2.74) 107(14.78) 68(21.22)

Chandigarh 2(0.35) 0(0.00) 2(0.28) 2(0.62)

Chhattisgarh 1(0.17) 2(1.37) 3(0.41) 0(0.00)

Delhi 1(0.17) 0(0.00) 1(0.14) 0(0.00)

Dadra & Nagar Haveli 4(0.69) 0(0.00) 4(0.55) 0(0.00)

Goa 7(1.21) 0(0.00) 7(0.97) 3(0.93)

Gujarat 50(8.65) 11(7.53) 61(8.43) 27(8.39)

Haryana 46(7.69) 17(11.64) 63(8.70) 30(9.32)

Himachal Pradesh 0(0.00) 3(2.05) 3(0.41) 0(0.00)

Jharkhand 1(0.17) 0(0.00) 1(0.14) 1(0.93)

Karnataka 52(9.00) 9(6.16) 61(8.43) 27(8.39)

Kerala 24(4.15) 0(0.00) 24(3.31) 11(3.42)

Madhya Pradesh 14(2.42) 6(4.11) 20(2.76) 5(1.55)

Maharashtra 111(19.20) 36(24.66) 147(20.30) 55(17.08)

Nagaland 2(0.35) 0(0.00) 2(0.28) 0(0.00)

Orissa 10(1.73) 3(2.05) 13(1.80) 6(1.86)

Pondicherry 1(1.17) 1(0.68) 2(0.28) 0(0.00)

Punjab 10(1.73) 7(4.79) 17(2.35) 2(0.62)

Rajasthan 8(1.38) 11(7.53) 19(2.62) 7(2.17)

Tamil Nadu 69(11.94) 18(12.33) 87(12.02) 49(15.22)

Uttar Pradesh 34(5.88) 5(3.42) 39(5.39) 16(4.97)

Uttarakhand 3(0.52) 0(0.00) 3()0.41 2(0.62)

West Bengal 25(4.33) 13(8.90) 38(5.25) 11(3.42)

Grand Total 578(100.00) 146(100.00) 724(100.00) 322(100.00)


Note: The Figures given in parentheses show column-wise percentages.FA- Formally Approved, AP- Approved in Principle

4.4 Sector-wise Composition of SEZs

Table 4.6 explains sector-wise composition of SEZs in India

as on 10 January, 2009. These SEZs cover 28 sectors of the

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economy like Aviation/Aerospace, IT/ITES, Textile/Apparel/ Wool,

Pharma/Chemical, Multi-product, Bio-tech, Engineering, Multi-

services, Gems & Jewellery, etc. IT/ITES/Electronic Hardware/

Semi-conductor SEZs play a dominant role. Among the major

categories of SEZs in the country, the IT/ITES SEZs stand at the

top with 354 SEZs (61.25 per cent) out of total 578 formally

approved SEZs. Bio-tech, Engineering, and Multi-product follow

this with 32 (5.54 per cent), 24 (4.15 per cent), 23 (3.98 per cent)

SEZs respectively.

Multi-product SEZs appear at the top registering with their

number as 55 out of total 146 SEZs approved in principle. It

amounts to 37.67 per cent of the total SEZs approved in principle.

Textile/Apparel/Wool and Multi-services SEZs are at the second

position with 13 (8.90 per cent) SEZs. IT/ITES/Electronic

Hardware/Semi-conductor SEZs are at the third place with 10

(6.85 per cent) SEZs.

If we combine the formally approved and approved in

principle SEZs (FA+AP), it comes out that 364 SEZs out of total 724

SEZs belong to the category of IT/ITES/Electronic Hardware/

Semi-conductor, which is 50.28 per cent of the total formally

approved and approved in principle SEZs.

Out of 322 notified SEZs, 205 SEZs appear in

IT/ITES/Electronic Hardware/Semi-conductor category which is

63.66 per cent of the total notified SEZs. Thus, it is clear that

maximum number of SEZs belong to this category.

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Table 4.6: Sector-wise Composition of SEZs (As on 10 January, 2009)

Categories of SEZs FormallyApproved

SEZs

Approvedin Principle

SEZs

FA+AP NotifiedSEZs

Aviation/Aerospace 1(0.17) 2(1.37) 3(0.41) 0(0.00)

IT/ITES/ElectronicHardware/Semi-conductor 354(61.25) 10(6.85) 364(50.28) 205(63.66)Textiles/Apparel/Wool 20(3.46) 13(8.90) 33(4.56) 12(3.73)

Pharma/Chemicals 22(3.81) 2(1.37) 24(3.31) 17(5.28)

Petrochemicals & Petro 4(0.69) 0(0.00) 4(0.55) 1(0.31)

Multi-product 23(3.98) 55(37.67) 78(10.77) 12(3.73)

Building Product/Material 1(0.17) 2(1.37) 3(0.41) 0(0.00)

Beach & Minerals/Metals 3(0.52) 0(0.00) 3(0.41) 2(0.62)

Bio-tech 32(5.54) 1(0.68) 33(4.56) 14(4.35)

Ceramic & Glasses 1(0.17) 0(0.00) 1(0.14) 1(0.31)

Engineering 24(4.15) 9(6.16) 33(4.56) 16(4.97)

Multi-service/Services 17(2.94) 13(8.90) 30(4.14) 7(2.17)

Metallurgical Engineering 1(0.17) 0(0.00) 1(0.14) 0(0.00)

Electronic Industry 3(0.52) 4(2.74) 7(0.97) 3(0.93)

Auto and related 3(0.52) 5(3.42) 8(1.10) 1(0.31)

Footwear/Leather 7(1.21) 2(1.37) 9(1.24) 5(1.55)

Gems & Jewellery 11(1.90) 4(2.74) 15(2.07) 4(1.24)

Power/Alternate Energy 4(0.69) 2(1.37) 6(0.83) 1(0.31)

FTWZ 8(1.38) 8(5.48) 16(2.21) 2(0.62)

Metal/Stainless Steel/Alum./Foundry 9(1.56) 4(2.74) 13(1.80) 5(1.55)

Food Processing 5(0.87) 2(1.37) 7(0.97) 4(1.24)

Non-conventional Energy 5(0.87) 0(0.00) 5(0.69) 3(0.93)

Plasting Processing 0(0.00) 1(0.68) 1(0.14) 0(0.00)

Handicrafts 4(0.69) 1(0.68) 5(0.69) 2(0.62)

Agro 5(0.87) 4(2.74) 9(1.24) 2(0.62)

Port-based Multi-product 7(1.21) 0(0.00) 7(0.97) 2(0.62)

Airport based Multi-product 2(0.35) 2(1.37) 4(0.55) 0(0.00)

Writing and Printing Paper Mills 2(0.35) 0(0.00) 2(0.28) 1(0.31)

Grand Total 578(100.00) 146(100.00) 724(100.00) 322(100.00)


Note: The figures given in parentheses denote column-wise percentages.FA- Formal Approval, AP- Approved in Principle

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4.5 Type-wise and Size-wise Composition of Indian SEZs

According to the nature of SEZs, data relating to the number

of formally approved, approved in principle and notified SEZs up to

April 29, 2009 has been grouped into two broad categories, namely,

size and type. Further, the size category has been classified into

four sub-categories, i.e., Tiny (area less than 1 sq. km.), Small (area

1 to 3 sq. km.), Medium (area 3 to 10 sq. km.) and Large (area more

than 10 sq. km.)1. The various types of SEZs are classified into

four broad categories; (a) Existing Strengths, which include Textile,

Apparel, Pharmaceuticals/Chemicals, Gems & Jewellery, and

Footwear/Leather, i.e., our existing export basket, (b)

IT/ITES/Electronic Hardware/Semi-conductor, (c) Multi-product

zones, and (d) Others, include everything else.

As is evident from Table 4.7, among the 578 formally

approved SEZs almost all the SEZs are either tiny (70.24 per cent)

or small (23.53 per cent) and fall in the IT/ITES sector. Indeed, the

IT/ITES sector (61.25 per cent) and the existing strengths sector

(10.21 per cent) comprise almost three-fourths of the SEZs. It

means that only 28.54 per cent of the SEZs belong to potentially

1 One hundred hectares is equivalent to a square kilometer.

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new export sector. Only 23 and 20 out of the total 578 SEZs are

Large and Multi-product respectively. If we observe the area under

formally approved SEZs then quite a different picture emerges. Tiny

IT/ITES SEZs constitute 10.09 per cent of the area (69.35 sq. km.),

while the 20 Large Multi-product SEZs occupy 45.69 per cent

(314.09 sq. km.) of the total 687.41 sq. km. area currently occupied

by 578 formally approved SEZs.

Table 4.7: Type-wise and Size-wise Number and Area Allocated to FormallyApproved SEZs in India

(As on 29th April, 2009)


Note: The figures given in parentheses present percentages.

BroadCategory

Large Medium Small Tiny Grand Total

ExistingStrengths

0(0.00) 2(0.35) 39(6.75) 18(3.11) 59(10.21)

Area insq. km.

0(0.00) 7.88(1.15) 53.23(7.74) 6.17(0.90) 67.27(9.79)

IT/ITES 0(0.00) 0(0.00) 16(2.77) 338(58.48) 354(61.25)

Area insq. km.

0(0.00) 0(0.00) 24.25(3.53) 69.35(10.09) 93.61(13.62)

Multi-product

20(3.46) 3(0.52) 0(0.00) 0(0.00) 23(3.98)

Area insq. km.

314.09(45.69) 11.86(1.73) 0(0.00) 0(0.00) 325.45(47.42)

Others 3(0.52) 8(1.38) 81(14.01) 50(8.65) 142(24.57)

Area insq. km.

39.40(5.73) 40.27(5.86) 107.99(15.71) 12.91(1.88) 200.57(29.18)

Total 23(3.98) 13(2.25) 136(23.53) 406(70.24) 578(100.00)

TotalArea insq. km.

353.49(51.42) 600.07(8.73) 185.47(26.98) 88.44(12.87) 687.41(100.00)

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Type-wise distribution of formally approved SEZs brings out

that maximum number of SEZs (61 per cent of the total formally

approved SEZs) fall in the IT/ITES category, but maximum area is

acquired by multi-product SEZs (47 per cent area out of total area

approved for formally approved SEZs) as shown in Figures 4.1 and

4.2.

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Size-wise distribution of formally approved SEZs reveals that

a large number of tiny SEZs (70 per cent of the total) occupy quite

less area in comparison to large SEZs as reflected by in Figures 4.3

and 4.4.

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Table 4.8 demonstrates that 58.22 per cent SEZs approved in

principle are either tiny or small. Only 10.96 per cent SEZs are

tiny. However, 38.36 per cent SEZs are of large, and 3.42 per cent

SEZs are of medium size. Only 6.85 per cent SEZs belong to the

IT/ITES category, while 37.67 per cent SEZs represent the

multi-product category. As many as 69 small size SEZs constitute

7.31 per cent (91.51 sq. km.) of the total area, while 56 large size

SEZs occupy 90.15 per cent (1129.40 sq. km.) of the total 1252.73

sq. km. area proposed by 146 SEZs approved in principle.

Table 4.8: Type-wise and Size-wise Number and Area Allocated to SEZs Approved in Principle in India.

(As on 29 th April, 2009)



BroadCategory


ExistingStrengths

0(0.00) 1(0.68) 17(11.64) 3(2.05) 21(14.38)

Area insq. km.

0(0.00) 3.65(0.29) 21.09(1.68) 12.46(0.10) 25.98(2.07)

IT/ITES 0(0.00) 0(0.00) 5(3.42) 5(3.42) 10(6.85)

Area insq. km.

0(0.00) 0(0.00) 6.44(0.51) 1.46(0.12) 7.90(0.63)

Multi-product

53(36.30) 1(0.68) 1(0.68) 0(0.00) 55(37.67)

Area insq. km.

1074.48(85.77) 8.00(0.64) 2.63(0.21) 0(0.00) 1085.11(86.82)

Others 3(2.05) 3(2.05) 46(31.51) 8(5.48) 60(41.10)

Area insq. km.

54.92(4.38) 13.20(1.05) 61.35(4.90) 4.25(0.34) 133.73(10.68)

Total 56(38.36) 5(3.42) 69(47.26) 16(10.96) 146(100.00)

TotalArea insq. km.

1129.40(90.15) 24.85(1.98) 91.51(7.31) 6.96(0.56) 1252.73(100.00)

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The type-wise distribution of SEZs approved in principle

shows that maximum number of such SEZs appear under the

multi-product and others categories; and maximum area is

proposed to be covered by multi-product SEZs as depicted in the

following figures.

89

The size-wise distribution of SEZs indicates that small size

SEZs are maximum in number and maximum area is proposed to

be covered by large size of SEZs as shown in Figures 4.7 and 4.8.

90

The data provided in the Table 4.9 reveals that notified SEZs

in the tiny and small size categories are 70.15 per cent and 25.07

per cent of the total number of such SEZs respectively. The table

further explains that only 4 medium and 12 large size SEZs are

included in a total of 335 notified SEZs. As many as 74.93 per cent

tiny and small size SEZs belong to IT/ITES and existing strengths

categories.

Table 4.9: Type-wise and Size-wise Number and Area Allocated to NotifiedSEZs in India



Note: The figures given in parentheses show percentages.

Type-wise distribution of notified SEZs reflects that maximum

number of SEZs are in IT/ITES category; and maximum area is

BroadCategory


ExistingStrengths

0(0.00) 1(0.30) 29(8.66) 10(2.99) 40(11.94)

Area insq. km.

0(0.00) 4.05(1.02) 38.21(9.64) 4.13(1.04) 46.39(11.70)

IT/ITES 0(0.00) 0(0.00) 13(3.88) 199(59.40) 212(63.28)

Area insq. km.

0(0.00) 0(0.00) 19.46(4.91) 41.08(10.36) 60.54(15.27)

Multi-product

12(3.58) 0(0.00) 0(0.00) 0(0.00) 12(3.58)

Area insq. km.

215.35(54.33) 0(0.00) 0(0.00) 0(0.00) 215.35(54.33)

Others 0(0.00) 3(0.90) 42(12.54) 26(7.76) 71(21.19)

Area insq. km.

0(0.00) 13.72(3.46) 54.27(13.69) 6.08(1.53) 74.07(18.69)

Total 12(3.58) 4(1.19) 84(25.07) 235(70.15) 335(100)

TotalArea insq. km.

215.35(54.33) 17.77(4.48) 111.94(28.84) 51.29(12.94) 396.34(100)

91

allocated to multi-product category of SEZs as displayed in Figures

4.9 and 4.10.

The size-wise distribution of SEZs points out that 70 per cent

tiny SEZs covered only 13 per cent area of the total allocated area

to notified SEZs. On the other hand, it is pertinent to note that only

4 per cent large size SEZs covered as much as 54 per cent of the

92

total area approved for notified SEZs as exhibited in Figures 4.11

and 4.12.

4.6 SEZs in Haryana

Haryana is the leading state in northern India to attract

maximum number of SEZs after the enactment of SEZ Act, 2005.

93

In Haryana, as on 29th April, 2009, as many as 46 SEZs got formal

approvals. There are 17 SEZs valid in principle approvals. Out of

the 46 formal approvals, 31 SEZs have been notified as on 29th

April, 2009 (Government of India, 2009).

Formally approved SEZs in Haryana include 40 tiny SEZs, 5

small SEZs, and 1 medium SEZ. As many as 35 SEZs belong to

IT/ITES sector and all these are tiny in size (Table 4.10).

Table 4.10: Type-wise and Size-wise Number and Area Allocated toFormally Approved SEZs in Haryana




BroadCategory


ExistingStrengths

0(0.00) 0(0.00) 1(2.17) 1(2.17) 2(4.35)

Area insq. km.

0(0.00) 0(0.00) 1.15(6.21) 0.17(0.91) 1.32(7.12)

IT/ITES 0(0.00) 0(0.00) 0(0.00) 35(76.09) 35(76.09)

Area insq. km.

0(0.00) 0(0.00) 0(0.00) 6.90(37.27) 6.90(37.27)

Multi-product

0(0.00) 0(0.00) 0(0.00) 0(0.00) 0(0.00)

Area insq. km.

0(0.00) 0(0.00) 0(0.00) 0(0.00) 0(0.00)

Others 0(0.00) 1(2.17) 4(8.70) 4(8.70) 9(19.57)

Area insq. km.

0(0.00) 4.40(23.78) 4.79(25.88) 10.99(5.94) 10.29(55.61)

Total 0(0.00) 1(2.17) 5(10.87) 40(86.96) 46(100.00)

Total Areain sq. km.

0(0.00) 4.40(23.78) 5.94(32.09) 8.16(44.13) 18.50(100.00)

94

The type-wise distribution of formally approved SEZs in

Haryana presents that IT/ITES SEZs got maximum approvals, but

maximum area is approved for others category of SEZs as displayed

in Figures 4.13 and 4.14.

95

The size-wise distribution of formally approved SEZs in

Haryana describes that tiny SEZs have got maximum number of

approvals and maximum approved area as is evident from Figures

4.15 and 4.16.

96

As far as SEZs approved in principle are concerned, an equal

number of large and small size SEZs, i.e., 8 each and I tiny SEZ

constitute the total number of 17 such SEZs. It is pertinent to note

from Table 4.11 that large size SEZs in the multi-product category

occupy an area of 263.47 sq. km. (96.11 per cent) of the total

274.12 sq. km. area proposed to be allocated to all the SEZs

approved in principle in Haryana.

Table 4.11: Type-wise and Size-wise Number and Area Allocated to SEZsApproved in Principle in Haryana



Note: The figures given in parentheses indicate percentages.

BroadCategory


ExistingStrengths

0(0.00) 0(0.00) 1(5.88) 0(0.00) 1(5.88)

Area insq. km.

0(0.00) 0(0.00) 1.01(0.37) 0(0.00) 1.01(0.37)

IT/ITES 0(0.00) 0(0.00) 2(11.76) 1(5.88) 3(17.65)

Area insq. km.

0(0.00) 0(0.00) 2.62(0.96) 0.60(0.22) 3.22(1.17)

Multi-product

8(47.06) 0(0.00) 0(0.00) 0(0.00) 8(47.06)

Area insq. km.

263.47(96.11) 0(0.00) 0(0.00) 0(0.00) 263.47(96.11)

Others 0(0.00) 0(0.00) 5(29.41) 0(0.00) 5(29.41)

Area insq. km.

0(0.00) 0(0.00) 6.43(2.35) 0(0.00) 6.43(2.35)

Total 8(47.06) 0(0.00) 8(47.06) 1(5.88) 17(100.00)

TotalArea insq. km.

263.47(96.11) 0(0.00) 10.06(3.67) 0.60(0.22) 274.12(100.00)

97

Type-wise distribution of SEZs approved in principle depicts

that there are maximum number of multi-product SEZs approved

in Haryana, and the area proposed to be occupied by such SEZs is

also the largest as is evident from Figures 4.17 and 4.18.

98

Size-wise distribution of SEZs approved in principle shows

that maximum number of large size SEZs have been approved in

Haryana, and the area proposed to be allocated to such SEZs is

also the largest as reflected by Figures 4.19 and 4.20.

99

The notified SEZs in Haryana include a maximum number of

26 tiny SEZs followed by 4 and 1 small and medium size SEZs

respectively. However, no large size notified SEZ existed in the

state. A maximum number of 24 tiny SEZs represented the IT/ITES

category. Table 4.12 demonstrates that the area allocated to all

these 24 SEZs (4.27 sq. km.) is less than the area allocated to one

medium size SEZ (4.40 sq. km.).

Table 4.12: Type-wise and Size-wise Number and Area Allocated toNotified SEZs in Haryana


Source: Calculations are based on the data obtained from Ministry of Commerce& Industry, Department of Commerce, Government of India.


BroadCategory


ExistingStrengths

0(0.00) 0(0.00) 1(3.23) 0(0.00) 1(3.23)

Area insq. km.

0(0.00) 0(0.00) 1.35(10.01) 0(0.00) 1.35(10.01)

IT/ITES 0(0.00) 0(0.00) 0(0.00) 24(77.42) 24(77.42)

Area insq. km.

0(0.00) 0(0.00) 0(0.00) 4.27(31.64) 4.27(31.64)

Multi-product

0(0.00) 0(0.00) 0(0.00) 0(0.00) 0(0.00)

Area insq. km.

0(0.00) 0(0.00) 0(0.00) 0(0.00) 0(0.00)

Others 0(0.00) 1(3.23) 3(9.68) 2(6.45) 6(19.35)

Area insq. km.

0(0.00) 4.40(32.54) 3.11(22.98) 3.83(2.83) 7.88(58.35)

Total 0(0.00) 1(3.23) 4(12.90) 26(83.87) 31(100.00)

TotalArea insq. km.

0(0.00) 4.40(32.54) 4.46(33.00) 4.66(34.47) 13.51(100.00)

100

Type-wise distribution of notified SEZs in Haryana provides

that maximum number of SEZs belong to IT/ITES category, but

maximum area is allocated to others category of SEZs as shown in

Figure 4.21 and 4.22.

101

Size-wise distribution of notified SEZs in Haryana highlighted

in Figures 4.23 and 4.24 reflects that tiny size SEZs are maximum

in number and so is the area allocated to them .

102

4.7 Summing-up

It has been observed that after the implementation of SEZ

Act, 2005, the number of SEZs increased at a rapid speed in India.

State-wise distribution of formally approved, approved in principle

and notified SEZs in India revealed that Maharashtra, Andhra

Pradesh, Tamil Nadu, Karnataka, Gujarat and Haryana have

attracted a large number of SEZs in comparison to other states.

But there is not even a single formally approved SEZ in states like

Bihar, Himachal Pradesh, Jammu & Kashmir, Assam, etc. In the

sector-wise composition of SEZs, majority of IT/ITES SEZs are

either formally approved or notified. However, as far as SEZs in

principle are concerned, the number of Multi-product SEZs are

greater as compared to other categories of SEZs. Type-wise

distribution of SEZs provides that most of the SEZs belong to the

category of IT/ITES, but a large area is allocated to multi-product

SEZs. Size-wise distribution of SEZs shows that maximum number

of SEZs are either tiny or small. But most of the area is allocated to

large SEZs. It has also been observed that most of the tiny SEZs

carry out IT/ITES activities and almost all the large size SEZs are

Multi-product SEZs.

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chapter iv origin and growth of sezs in...

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