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SEZs sans facilities to be counter productive - experts
May '10
According to an expert, lack of proper infrastructure facilities like proper roads and reliable electricity supply could mar the fortunes of the Special Economic Zones (SEZs), unlike the Export Promotion Zones (EPZs), which have all facilities.

In contrast the EPZs have good infrastructure facilities in place like good roads, proper electricity supplies and streamlined business procedure, while SEZs, which have been set up in rural areas lack these facilities.

According to Mr Farole of the World Bank, the infrastructural gaps existing in the SEZs , need to be addressed. He said, a study reveals that foreign investors prefer regions that have world class infrastructure, like expedited customs and administrative procedures and fiscal incentives.

However, the study adds by saying that, all EPZs have not performed as expected and there is a tendency to convert them to SEZs, which could help generate more jobs and increase the viability of the businesses operating in these zones.

Fibre2fashion News Desk - India

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