Delhi to float RFPs for 2 SEZs soon

News Posted - 2010-04-19

New Delhi: The Delhi Government will come out with a global request for proposal (RFP) next week seeking investment in the two Special Economic Zones to be set up in the national capital.

The two SEZs - one in Gems and Jewellery and the other in IT and IT-enabled services will be developed by DSIIDC and will require a total investment of nearly Rs 700 crore.

“We are coming out with the RFP in a week or so,” a top official of the Industries De¬partment told PTI.

LUXURY HOTELS

He said the Government was also planning to set up luxury hotels in the IT SEZ and all the modalities for greater involvement of private players in these tax-free zones were being worked out. “In the IT SEZ, we will try to attract big players in original equipment manufacturing segment such as Samsung, LG, Sony and Wipro,” said the official.

In developing the IT SEZ, the Government is following the model of the Nokia SEZ in Chennai where setting up of the Nokia plant led to various vendors such as Salcomp, Aspocomp, Foxconn and Wintek setting up manufacturing units.

The Government has already got all required clearances from the Centre, including the go-ahead from the Environment Ministry to set up the two tax-free zones.

The official said DSIIDC, the Government’s premier infrastructure development agency, will hold 26 per cent equity in both the SEZs.

The gems and jewellery SEZ, to be spread over 41.4 acres at Baprola village, will have facilities for identification, grading and certification of diamond as well as a Gems and Jewellery Training Institute.

EMPLOYMENT POTENTIAL

It is expected to provide direct employment to 18,000 people and indirect employ¬ment to 54,000 people. The second SEZ for pro¬moting the IT sector, which will be set up on 26 acres in south Delhi, is expected to provide direct employment to 36,000 people and indirect employment to another 1,08,000. The Industries Department official said the land had already been transferred to DSIIDC for the two SEZs.

After announcement of the Delhi SEZ policy last February, the NCT Government had received eight proposals from private developers to set up the tax-free zones in the city but most of them put on hold their plans due to the economic slowdown.

According to the Delhi government’s Industrial Policy, no polluting industries will be allowed to come up inside the SEZs and environmental clearance will be a must for all projects.

Under the SEZ Act of the Central Government, units in these zones will be given 100 per cent tax exemption on their income for the first five years and 50 per cent in the next five years.

Source: The Hindu Business Line