PORTS FROM HASSAN SEZ CROSSES Rs.350 CRORE IN 2010
SEZ CHANGES SOCIO-ECONOMIC LANDSCAPE OF THE REGION
EMPLOYMENT POTENTIAL OF 90,000 IN TEXTILES, PHARMA
AND FOOD PROCESSING UNITS
Date : 19 Oct 2010
Location : New Delhi
Hassan Special Economic Zone (SEZ), which has been developed by the Karnataka Industrial Areas Development Board (KIADB), has achieved an export of Rs.350 crore during 2010. The corresponding exports during 2008 and 2009 were Rs.228.71 crore and Rs.329.28 crore respectively. The Hassan SEZ comprises multi-product export units in textiles (Himatsingka Seide Ltd and NTC), food processing (Fresco Foods Ltd.) and pharma sector with a total area of approx. 460 hectares. The approximate investment planned by KIADB to develop these units was more than Rs.100 crores. These units in the Hassan SEZ has the employment potential for about 90,000 people viz., 35000 in textile sector; 30000 in food processing and 25000 in pharma sector.
The National Textile Corporation (NTC) is planning to export its shirts under brand name “Entyce” to the US and Europe markets with a production capacity of about 50,000 shirts per day. The Unit is expected to produce 10,000 kg of yarn and 20,000 meters of fabric every day. Himatsingka Seide Ltd which has recently commissioned its new bed Linen manufacturing facility in the SEZ, has state-of-the-art integrated plant with weaving, processing and making up facilities having an annual installed capacity of 20 million meters, which corresponds to 9,000 sheet sets a day. Against an estimated project outlay of Rs.400 crore, the company has invested around Rs.450 crore so far. Fresco Foods Ltd., another food processing unit is exporting gherkins to developed markets in Europe.
To act as a true catalyst of socio-economic development, units at Hassan SEZs are undertaking CSR (corporate social responsibility) activities for its employees. The objective is balancing the need of socio-economic growth with that of social emancipation. One of the SEZ units involved in textile export engages around 5000 women workforce from poor and marginally poor families. Apart from giving employment to women workers, the unit concentrates on giving them free education with nutritious food for economic upliftment. The workers work in a clean environment and their health needs are taken care of by the units. They are provided with hostel accommodation and transportation facilities. True to its value of empowering women, SEZ units have changed socio-economic landscape of the entire region.
Hassan SEZ has been specially delineated as duty-free enclave with the objective of being deemed to be a foreign territory for the purpose of trade operations. The geographical location also gives it an edge as it is strategically located to serve as an international business hub for South-East Asia, Africa, Middle East Asia and SAARC nations.
Brief on SEZs
In short span of about four years since SEZs Act and Rules were notified in February, 2006, formal approvals have been granted for setting up of 577 SEZs out of which 363 have been notified. Out of the total employment provided to 5,50,323 persons in SEZs as a whole 4,15,619 persons is incremental employment generated after February, 2006 when the SEZ Act has come into force. This is apart from million of man days of employment created by the developer for infrastructure activities. Physical exports from the SEZs have increased from Rs.99,689 crore in 2008-09 to Rs.2,20,711.39 crore in 2009-10, registering a growth of 121%. There has been overall growth of export of 1493% over past seven years (2003-04 to 2009-10). These figures establish beyond doubt that the response to the SEZ policy of the Central Government has been overwhelming and the scheme has been able to achieve the envisaged objectives. An investment of Rs.1,66,526.43 crore has been made in SEZs this includes Foreign Direct Investment of Rs.17,683.56 crore.