Kazakhstan invites investment from Indian textile sector in its SEZ

New Delhi, June 9 (UNI) Kazakhstan has invited investment from the Indian textile sector, for setting up units in its Special Economic Zone (SEZ), created in the country's southern part.

An agreement of co-operation to this effect was signed here today between the Confederation of Indian Industry (CII) and the Deputy Head of the Office of the Prime Minister of the Republic of Kazakhstan, focussing on investment activity in the SEZ, called 'ONTUSTYK'.

The signatories to the agreement were Mr S P Oswal, Chairman, CII National Committee on Textiles and Mr Berdibek M Saparbayev, Deputy Head of the Office of the Prime Minister of Republic of Kazakhstan.

According to the agreement, CII agreed to formulate and direct a group of experts to the Republic of Kazakhastan for undertaking a detailed study on textiles in the second half of 2006.

The Ministry of Industry and Trade of the Republic of Kazakhstan will provide details to the Indian Expert Group, on the investment policy and the programme for the development of the Textile Zone in SEZ ''ONTUSTYK'' upto 2015.

This Agreement shall be official and copies shall be presented to the relevant government organisations of India and the Republic of Kazakhstan for co-operation and support.

Head of the Kazakhstan delegation, Mr Saparbayev also invited potential Indian entrepreneurs to participate in the International Exhibition on Fashion and Textiles and at the Second International Conference on Development of Textile Manufacturers to be held in October this year in Kazakhstan.

Giving details of facilities extended in the SEZ, he said favourable business conditions have been created for business start-up and development. The most important factor is political and social stability in the country.

Altogether more than 15 textile enterprises are planned to be built on SEZ territory and they will consume upto 100,000 tonnes of local cotton-fibre per year. Total investments volume will make more than 500 million US dollars.

Investors are exempted from taxes and customs duties. The South Kazakhstan where ''Ontustik'' SEZ is located is the regional hub with low cost raw material and all these factors allow manufacturers competitive production. The same incentives are extended for the investors whether they sell their produce in the local market or export from there, he added.

The basic requirements for the investors will be that textile products should be made from 100 per cent cotton, of which not less than 30 per cent must be Kazakh cotton.

''We are competitive enough in energy cost and labour cost.

And we have the best conditions for taxes and customs duties,'' Mr Saparbayev said.

The bilateral trade between India and Kazakhstan stood at 120 million dollars last year.

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