Kamal Nath supports West Bengal SEZ model

Kolkata, Nov 25 (UNI) Commerce and Industry Minister Kamal Nath today said his government fully supports the West Bengal government's proposed model of Special Economic Zones(SEZ).

''I fully support the Bengal government's model for SEZs. it is a good model,'' he said on the sidelines of an award ceremony of Jems and Jewellery Export Promotion Council. In West Bengal, SEZ developers are required to utilise 50 per cent of the total area for manufacturing activities and the remaining for non-processing activities such as houses, roads, parks and restaurants.

However, as per the SEZ Rules framed by the Centre, only 35 per cent of the area must be used for processing activities. The remaining 65 per cent area can be used for non-processing functions.

The ruling Left party in the state maintained the stand that the increase in processing area was meant to ensure that SEZs do not become "pure realty projects" but keep their focus on creating manufacturing facilities and providing world-class services.

Asked on the Finance Minister P Chidambaram's views on tax revenue losses because of the SEZs, he said,''It is not right. SEZs will act as additional revenue and employment generators.'' He urged the gems and jewellery industry to prepare a strategy for designing and branding of its products for international markets.

He said, ''With seven SEZs for gems and jewellery industry, the sector is set to see huge growth and create employment. We will have to see that the sector remains competitive in competition with international sphere.'' UNI TJP JYN AKP1445