INFRASTRUCTURE SYSTEMS

Semester One (2008 – 2010)

MID TERM EXAMINATION

Section C: Open Book Take Home Assignment

SPECIAL ECONOMIC ZONE

Submitted by:
Smita Nimsarkar
Code : IP 1808
SPECIAL ECONOMIC ZONE
Cities are the engines of economic growth.
Current issues faced by cities:
• Indirect Consequences results in gradual decline of economic productivity of
the City
• Pollution
• Urban Governance & Local Empowerment
• Unemployment
• Over-crowding, Slum development

NEEDS AN INTEGRATED APPROACH THAT COMBINES:

Urban Planning, Environment, Housing, Utility, Transportation, Knowledge,
Technology, Economic Development.

ROLE OF GOVERNMENT:
• ‘Facilitator’ of private investment by creating an enabling environment
• ‘Provider’ of gaps in critical infrastructure to encourage investment
• ‘Partner’ of the private sector in ‘public-private’ partnerships
• ‘Investor’ in social sectors such as health, education, etc. to serve the needs
of society

INFRASTRUCTURE INITIATIVES BY GOVERNMENT:

The Govt. has initiated following projects to enhance the glory of India
• Jawaharlal Urban Renewal Mission (JNURM)
• Delhi-Mumbai Industrial Corridor (DMIC)
• Modernization of Metro Cities Airport
• Metro Rail
• Bus Rapid Transit Systems

CONTRIBUTION BY STATE GOVERNMENT:

Multi-Product SEZs along with related infrastructure will supplement the State
Govt. initiatives in :
• Spearheading industrial growth
• Creating large-scale employment opportunities
• Decongesting the Metropolis
• Intent to retain State’s numerouno position in business
• Strengthening India economic & financial hub

SPECIAL ECONOMIC ZONES – WHAT ARE SEZS?

Special Economic Zones (SEZs) are:
• Specifically delineated duty-free enclaves deemed to be foreign territories
for the trade operations, duties and tariffs
• Engines of Economic Growth for the country
Islands of Excellence with:
• State-of-the-Art Infrastructure
• International Work Environment
• Favorable Tax & Regulatory Regime
• Competitively priced goods & services
 EOU EPZ ETZ FREE PORT

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INTEGRATED INFRASTRUCTURE & PROCESSES

SPECIAL ECONOMIC ZONE

SEZS - WORLD OVERVIEW:

Special Economic Zones – 3 decades of Global Growth
• Over 5,000 such zones in 120 countries are generating US$ 800 Bn exports
and employees over 50 Mn people.
Chinese SEZs account for 50% of World SEZ exports
Key Features of Chinese SEZs:
• All Infrastructure investment by Govt.
• Proximity to Metro Cities like Shenzhen (near Hong Kong)
• Large contiguous area – 327 Sq. Km (Shenzhen)

INDIAN SEZS-
• Kandla Free Trade Zone – India’s 1st and setup as early as in 1965
• Eight such zones setup in India declared as Export Processing Zones (EPZs) –
later re-designated as SEZs in the year 2000
• An area of 8 EPZs is 1,087 Ha Contributed Exports Valued over US$ 4 Bn
• In Maharashtra, MIDC’s Approved SEZs (18 nos.), MIDC’s Proposed SEZs ( 6
nos.)
Total = 24 nos

Mumbai & Mundra SEZ

Navi Mumbai SEZ (NMSEZ) : 2140 ha. + 1850 ha : 40 Sq.km.
Mumbai SEZ (MSEZ) : 10000 ha. : 100 Sq.km.
Mundra (MPSEZ) : 6500 ha. : 65 Sq.km.
Total : 20500 ha. : 205 Sq.km.

OUR SEZs NEED:

• Multi product SEZs need to be comparable with Asian/world SEZs.
• Most of the world SEZs has been set up with Govt. investments
• Our companies were unable to compete on account of mismatch with
international scale & cost.
• Our SEZs will have to provide utilities at internationally competitive rates,
which is possible only through fresh investments.
EMPLOYMENT POTENTIAL & INVESTMENT OPPORTUNITIES:
Mumbai SEZ Area will Create Job Opportunities for over 2M. People over a decade
Main Focus is on IT, ITES, Apparel Manufacturing, BioTechnology – All Labor
Intensive Activities

Mundra Port & SEZ - Socio Economic Transformation of the Region with expected 2
M.
Main Focus is on Light & Heavy Engineering, Textiles, Minerals & Mining Products –
Require huge Storage, Mechanization & Port

AN INTEGRATED APPROACH:
SEZ: Opportunity to Plan and Develop an integrated township that offers
• Port
• New Town
• Utilities
• Industrial
• Commercial
• Tourism
• Effectively combines working with living

SEZ PLANNING & ENGINEERING FUNCTION:

DETAILS OF SOME ESSENTIAL FUNCTIONS

Planning support system are SEZ approvals and environmental clearance, Build-
Out - Urban Design, Street Furniture, property management, architecture,
integrated transport system, FSI computation, Building Permission & Development
Control, Master Plan – Land use Zoning

THE PLANNING PROCESS:

PREPARATION OF:
• Master plan
• Building Scrutiny & Approval
• Architecture
• Transport Plan
• Planning Norms and Standards
• Urban Design
• Industrial Development
• Social Infrastructure
• Street Furniture & Urban Design
• SEZ Engineering Functions – integrated infrastructure development of Power,
port, water, telecom, rail, road, and airport.
• Logistic hub

INTERNATIONAL FINANCIAL SERVICES CENTER (IFSC)

• Concept of IFSC introduced as part of the SEZ Scheme in 2000
• SEZ Act 2005 allows setting up of an IFSC in a SEZ
• RBI has permitted OBUs to be out of Banking Regulation Act.