SEZ Developers Seek Infrastructure Status for Enhanced Funding
The commerce department is actively pursuing a strategic proposal to grant infrastructure status to Special Economic Zones (SEZs), which could potentially transform funding dynamics for developers. This initiative aims to provide SEZ developers with more accessible and cost-effective financial resources.
Key Proposal Highlights
- Commerce secretary G K Pillai is scheduled to meet RBI deputy governor Usha Thorat to discuss SEZ infrastructure classification
- The proposal hinges on the significant infrastructural components within SEZ developments
Infrastructure Rationale
The commerce department's argument for infrastructure status is compelling:
- Mandatory processing area constitutes industrial infrastructure
- Non-processing areas include critical social and commercial support infrastructure
- Includes facilities like:
- Power plants
- Sewage treatment plants
- Roads
- Hospitals
- Educational institutions
Potential Financial Benefits
By obtaining infrastructure status, SEZ developers could potentially:
- Access funds specifically earmarked for infrastructure projects
- Receive loans at approximately 2% lower interest rates
- Overcome current funding constraints in the real estate sector
Export Performance Metrics
Recent export data from the Export Promotion Council demonstrates remarkable growth:
- Five-year export growth: From Rs 33,647 crore to Rs 1,91,638 crore (5.7 times increase)
- Last year's SEZ exports: Increased from Rs 34,787 crore to Rs 66,638 crore (93% growth)
The proposed infrastructure status could further accelerate this impressive export trajectory by providing more robust financial support to SEZ developers.