Surat: The gems and jewellery units in Mumbai’s SEEPZ (Special Economic Zone (SEZ) are gearing up to ride the export boom. Reason: the Commerce ministry has come out with instructions on the space transfer policy to allow the existing and new units to scale up.
The Gems and Jewellery Export Promotion Council (GJEPC) held a series of meetings with the Union Commerce minister Piyush Goyal and the Commerce Secretary for introducing the space transfer policy to boost gems and jewellery exports from SEEPZ in Mumbai.
Till 2013, there was no condition of surrendering the properties back to the SEZ. The Central Government imposed a condition that even the purchased premises have to be surrendered back to SEZ for auction. This was a major bottleneck for the diamond and jewellery manufacturers running their units in SEEPZ.
The condition of the auction was creating impediments in mortgage and that the unit owners were not getting loans from the banks. At least 50% of the properties in SEEPZ are still unutilized or underutilized for years now.
Colin Shah, chairman of, GJEPC said, “It is a historic decision by the Commerce Ministry for the units in SEZ. This will help existing units to scale up at a time when exports are booming and will also enable new units to acquire space in the SEZ”
Shah said, “The council held a series of meetings with Commerce minister, Piyush and the commerce secretary over the introduction of space transfer policy in the SEZ, especially the SEEPZ in Mumbai. The Commerce Ministry issued instructions on Tuesday, which will go a long way in rejuvenating the idle, un-productive space in the SEZ”
The Santacruz Electronic Export Processing Zone (SEEPZ) was established on Mahy 1, 1973 as the multi-production Export Promotion Zone, exclusively for the manufacture and export of electronic items. In few years, the government decided to permit the manufacture and export of gems and jewellery items from SEEPZ during 1977-88.
Recently Union Minister of Commerce, Piyush Goyal announced new measures at the SEEPZ to boost export orders. The ministry has asked the Development Commissioner of SEEPZ to set up Common Service Centre (CSC) to provide services at very competitive prices”
Benefits of space transfer policy:
1. Existing units can exit easily
2. Transparency in the transfer
3. Hybrid of auction & direct agreement
4. Beneficial to Buyer Seller & no loss to the Govt.