THOOTHUKUDI: It has been 12 years since the CCCL Pearlcity Foodport SEZ was established to boost industrial activity in the coastal city, however, only three factories have come up till now. Industrialists are calling for a change in policy for Special Economic Zones (SEZ) so that factories other than export-oriented can also set up shop in the zone.
SEZs are tax-free enclaves treated as foreign territory for trade operations and tariffs. It grants exemption on import duty, export duty, GST on raw materials, income tax, 100% FDI and other sops. Only export-oriented industries are allowed to come up in SEZ zones.
CCCL Pearlcity Foodport SEZ, located 35 km from Thoothukudi VOC port, is a joint venture with the Tamil Nadu Industrial Development Corporation and provides infrastructure including land, electricity, road, water and parking facilities for industries. The SEZ which is located 5km from the Thoothukudi-Tirunelveli national highway was inaugurated on August 5, 2010, by MK Stalin when he was the Deputy Chief Minister.
According to sources, the Foodport is spread over 320 acres at Vadakku Karacheri and Thimmarajapuram villages near Perurani here and divided into 90 plots, each having two acres. The industries are allotted land on a 99-years lease. The Madras Processing Export Zone (MPEZ) functioning under the aegis of the Union Ministry of Commerce and Industry monitors the progress of the Pearlcity Foodport SEZ.
Reliable sources said that three factories - a tea packing unit, a noodles manufacturing unit and a nutritional food unit - are operational in the SEZ. "While the noodles and the nutritional food manufacturing units have been functioning for 9 years, the tea packing unit has been operational for 6 years'', he said, adding that five other proposals are in process. The employees are mostly recruited from the surrounding villages of Thimmarajapuram, Chekkarakudi, Vadakku Karacheri and Perurani, the source added.
As only a few companies are functioning in the SEZ even after 12 years, it is apparent that the SEZ facility has failed to attract industrialists. When contacted, sources from the SEZ told TNIE that there has been a recession in the industrial sector since 2009 which could have discouraged export-oriented industries to come to the southern part. The industrial climate has become worse as transportation charges and freight charges have tripled. "Being export-oriented industries, they find it difficult to source containers after the pandemic," he said further. As the sector-specific SEZ status for Foodport is a stumbling block for other export-oriented industries to enter Pearlcity food port SEZ area, the statute was altered to multi-sector SEZ in order to house industries of all categories, the source added.
Commenting on the development, industrialists told TNIE that the SEZs like AMRL Nanguneri and Gangaikondan SEZ in southern Tamil Nadu have been put to disuse as they were ignored by the previous government and unattractive SEZ laws. They anticipate a policy change for SEZs to encourage industrialists and also attract foreign investors. The union government, which is already working on SEZ 2.0, must arrive at a policy in tune with the World Trade Organisation and also boost the Indian economy, they added.
Some industrialists said that the policy must be flexible to accommodate industries which export and there should also be provisions to trade with the domestic markets in the country with regularisation of relevant taxes.
Speaking to TNIE, Thoothukudi MP Kanimozhi Karunanidhi said that she had taken the issue with industries minister Thangam Thennarasu and asked him to take necessary steps to set up more industries at Pearlcity Foodport SEZ in Thoothukudi.