SEZs eyeing 1,00,000 cr investment by year-end

New Delhi, Apr 3: The controversial SEZs would entail an investment of Rs 1,00,000 crore including foreign direct investment (FDI) of 5-6 billion dollars by the end of December, leading to creation of five lakh direct jobs in the country, annual report of the ministry of commerce and industry has said.

Out of the 234 formal approvals, notifications have already been issued in respect of 63 SEZs. In the 63 notified SEZs which have come up after February 10, 2006, investment of Rs 13,435 crore has already been made in less than one year. These SEZs have, so far, provided direct employment to 18,457 people.

The report mentions that the SEZ policy aims at generating greater economic activity and employment by providing a stable, transparent and efficient policy framework for establishment and running of SEZs.

''The sustained high growth rate of merchandise exports at more than 20 per cent during the last four years is more than twice the current growth of gross domestic product (GDP). This has been possible as a result of stable policy framework provided by the trade policy and a continuous, conscious and concerted effort by the government to reduce trade barriers, bring down transaction costs and facilitate a favourable international environment,'' the report noted.

After crossing the figure of 100 billion dollars in 2005-06, exports in the current year touched 89 billion dollars during the first three quarters (April-December 2006).

During the last few years, the rising competitiveness of some of the sectors like engineering goods (auto parts) and high commodity prices (petroleum and metals) have been the driving force for high sustained growth of exports.

With a view to ensuring healthy growth and improved productivity in the plantation sector, the Government initiated a Special Purpose Tea Fund (SPTF) set up under the Tea Board for funding replantation and rejuvenation of old tea bushes with the goal of long-term development of tea industry.

The proposal is to cover an area of 2.1 lakh hectares for rejuvenation and replantation activities over a period of 15 years.

To begin with, the scheme would be implemented till the end of 11th Plan with an estimated outlay of Rs 567.10 crore covering an area of 85,044 hectares. Under the SPTF, the Government would be providing a subsidy of 25 per cent of the cost.

During the year, a review of the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) was undertaken and fruitful discussions took place for smooth and purposeful implementation of the agreement.

Negotiations for conclusion of the Free Trade Agreement with ASEAN are well underway. Both sides have shown flexibility to conclude the agreement as early as possible and against this backdrop, three meetings of India-ASEAN Trade Negotiating Committee were held during the year. It is hoped to conclude the FTA with ASEAN by July 2007, report said.

The Doha Round, which was launched in November 2001, achieved an important milestone with the Declaration issued at Sixth Ministerial Conference of the WTO held in Hong Kong in December 2005 with WTO members agreeing to establish modalities for negotiating agriculture access and Non-Agricultural market Access (NAMA) and to conclude the negotiations across all areas of the Doha Round by 2006 end.

Intensive discussions through January to July 2006 had focused mainly on the triangular issues of domestic support, agricultural market access (AMA) and NAMA.

UNI