Date:03/05/2005 URL: http://www.thehindubusinessline.com/2005/05/03/stories/2005050301341700.htm

Back FICCI for setting up free zone at Vizag port

Our Bureau

Hyderabad , May 2

THE Federation of Indian Chambers of Commerce and Industry has asked the Andhra Pradesh Government to develop a free zone at Visakhapatnam port on the lines of Jebel Ali Free Zone in Dubai.

The free zone would trigger economic growth by giving impetus to intense manufacturing and processing activity.

Presenting the FICCI's agenda for the growth of Andhra Pradesh, Mr Onkar S. Kanwar, President of FICCI, said Visakhapatnam would be the ideal place to locate such a zone.

The Jebel Ali Free Zone charged no duties on all imports and exports within the free zone. There was no need for entering tie-ups with local companies.

Mr Kanwar said the free zone could offer flexible labour rules.

This would attract a lot of investment as Visakhapatnam was well positioned to cater to the markets in the Eastern countries. If materialised, it could be the first such zone in the country.

Responding to Mr Kanwar's suggestion, Dr Y.S. Rajasekhara Reddy, Andhra Pradesh Chief Minister, asked the chambers to provide him more information on the Jebel Ali model.

Mr Kanwar asked Andhra Pradesh to lay thrust on three key segments - agriculture, knowledge-based industry and services.

In agriculture, he said the State could focus on improving irrigation efficiency, promoting drip irrigation and strengthening water users associations.

While taking measures to arrest huge loss in horticulture produce, Mr Kanwar said the State should bring wasteland and fallow land, which constituted 11 per cent of total geographical area, into productive use.

Mr Kanwar said the Government should set up institutes in a big way to train skilled manpower to cater to knowledge-based industries like pharmaceuticals.

Taking a cue from China, Andhra Pradesh should focus on textiles and apparel, leather and leather products. These segments had huge employment potential.

Referring to a survey conducted by FICCI and FLO (FICCI Ladies Organisation), he said the State could also cash in on its tourism potential. "Andhra Pradesh is found to be the safest place. You can showcase this as well," he said.

Destination AP campaign: The Federation of Indian Chambers of Commerce and Industry will launch the `Destination Andhra Pradesh' campaign to attract investments into the State.

Mr Amit Mitra, Secretary-General of FICCI, said the chambers had submitted a proposal to the State Government in this regard.

"We will promote the State both in India and abroad," he said.

Once the Government approved its plan, the chambers would also host an annual event `Destination Andhra Pradesh'.