Government says it plans to mimic Hassan SEZ model

It is also being showcased as how SEZs can boost up country’s overall export earnings. “The success story of Hassan SEZ will be a trend setter for other SEZs in other parts of the country to generate jobs and contribute to export earnings,” Board of Approval Member said. While setting up of SEZs has sparked off protests over acquisition of agricultural land for setting up SEZ projects, the commerce ministry is pushing forward for SEZ projects claiming they offer potential for job creation and enhancing export earnings.

In a note circulated to Development Commissioners of Regional SEZ Zones spread across the country, the ministry has showcased the “success story” of Hassan SEZ. It said manufacturing units based in Hassan SEZ, which has been developed by Karnataka Industrial Areas Development Board (KIADB), have achieved 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 SEZ comprises multi-product export units in sectors like textiles, food processing and pharmaceuticals. These units have employment potential for about 90,000 people — 35000 in textile sector, 30,000 in food processing and 25,000 in pharma sector.

National Textile Corporation (NTC) in collaboration with Himatsingka Seide Limited (HSL) is planning to set up a unit to export shirts under brand name “Entyce” to the US and Europe markets with production capacity of about 50,000 shirts per day. 

HSL has just commissioned Rs 400 crore bed linen manufacturing facility in the SEZ, 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.  Fresco Foods Limited — a food processing unit is exporting gherkins to developed markets in Europe. 

Till date, the government has approved about 580 SEZs, of which 122 are operational. These tax free zones have emerged as major source of exports for the country as the shipments crossed Rs 2.20 lakh crore in 2009-10.