India Approves Rs 6.75 Billion SEZ in Chennai, Aims to Notify SEZ Act by November

Strategic Insights -

The Indian government has given its approval for a Special Economic Zone (SEZ) worth Rs 6.75 billion, to be set up by Nokia near Chennai. The move is part of the government's efforts to speed up the notification of the SEZ Act, which is expected to be completed by November. The SEZ Act aims to facilitate the setting up of SEZs, which have a total investment of Rs 500 billion, including a significant chunk of foreign direct investment (FDI).

Key Takeaways:

  • The Indian government has approved a Rs 6.75 billion SEZ near Chennai, to be set up by Nokia, a Finnish telecom major. This SEZ will create a hub within the zone, known as a Free Trade Warehouse, where around 200 vendors of Nokia will store their products and Nokia will import from them as and when required.
  • The government has also approved in principle a 4,000-hectare SEZ in Dadri by Reliance Energy, a petrochemical SEZ in Jamnagar by Reliance Industries, and a biotechnology and pharma SEZ near Pune by Serum Institute, with a total investment of Rs 12 billion.
  • Singapore real estate major Ascendas has joined hands with Mahindra to co-develop 40 acres in their SEZ in Chennai, with an investment of US$75 million.
  • Biocon has proposed a biotech SEZ near Bangalore.
  • The government plans to notify the services under the General Agreement on Trade in Services (GATS) to allow their operation from the SEZs.

Statistics:

  • The total investment in SEZs is Rs 500 billion, including a significant chunk of FDI.
  • The SEZ approved in Chennai will be worth Rs 6.75 billion (US $154 million).
  • The 4,000-hectare SEZ in Dadri by Reliance Energy will have an investment of an unspecified amount.
  • The petrochemical SEZ in Jamnagar by Reliance Industries will have an investment of Rs 12 billion.
  • The biotechnology and pharma SEZ near Pune by Serum Institute will have an investment of Rs 12 billion.
  • The US$75 million investment in the SEZ in Chennai by Ascendas and Mahindra is part of an initiative to co-develop 40 acres of the SEZ.

Sources:

  • Asia Pulse, "Govt okays Rs 6.75 bn SEZ by Nokia", September 23.
  • PTI, "GoI to notify services under GATS soon", September 23.
  • Press Trust of India (PTI) is not explicitly mentioned in the original text, however, it is a well-known news agency, and its reporting is considered reliable.