Union minister Piyush Goyal announces Rs 200 crore for internal expansion of Seepz

MUMBAI: The Centre will spend Rs 200 crore on the refurbishment and rebuilding of Seepz, India’s oldest export-oriented zone in Andheri (east).

Another Rs 50 crore will be used to create a common services centre. Union minister for commerce and industry Piyush Goyal, speaking at a meeting with export promotion councils, commodity boards and export development authorities, said space would be created in Seepz for more units.

“New places shall be built in Seepz for newer units to come in and also to move existing units into new places,” he said. “About Rs 50 crore will be spent for setting up common services centre facilities and roughly Rs 200 crore for refurbishing and rebuilding in the Seepz.”

The Santacruz Electronic Export Processing Zone (Seepz) was set up on May 1, 1973, as a uni-product EPZ solely for manufacture and export of electronic items. In 1987-88, the government permitted the manufacture and export of gem-and-jewellery items. Seepz was one of the three export processing zones converted into a special economic zone in November 2000.

Rajiv Pandya, president, Seepz Gems and Jewellery Manufacturing Association, said several units were facing space constraints and could not expand owing to policy restrictions, which did not allow space transfer. “When a unit moves out, another unit desirous of taking over the space for expansion cannot do so because of policy restrictions. The government has promised to do away with such constraints,” he said.

Pandya said jewellery sales were seasonal and they need work for slack periods, which would help them retain labour and remain competitive. The association also raised the issue of high premiums.

Colin Shah, chairman, Gem and Jewellery Export Promotion Council, said the government promised an e-commerce policy as part of its Foreign Trade Policy in October.

Pandya said the common facility centre would greatly benefit smaller units.

Courtesy: Times of India