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India is one of world’s largest industrialized nations with a sizeable pool of technically trained and committed manpower, sound legal system, strong political will and institutional framework based on western business models. Since liberalization in 1991, it has emerged as an ideal location for setting up business ventures for export production.

Amongst various schemes for export promotion, the scheme for setting up SEZs / EOUs has achieved remarkable success. This is evident from the fact that the share of SEZ units / Export Oriented Units (EOUs) in the national exports has gone up from 10 percent in 2004-05 to about 22 percent in 2008-09. Under the scheme, a SEZ Unit can be set up in any of the seven Government SEZs (erstwhile Export Processing Zones) while EOUs can be set up outside SEZ across the country as per territorial jurisdiction of concerned Development Commissioner.

The EOU Scheme introduced in the year 1981, is complimentary to the SEZ Scheme (Erstwhile EPZ Scheme). It provides the internationally competitive duty free environment for export production and offers wide options in locations with reference to factors like source of raw-materials, port of exports, availability of skilled manpower.

NSEZ the only Central Government SEZ in the northern India, headed by the Development Commissioner, was set up in 1985 in Noida Phase-II on a 310 acre plot of land. Government of India has so far invested a sum of Rs. 1177 million on its development. NSEZ provides excellent infrastructure, supportive services and sector specific facilities for the thrust areas of exports like gem and jewellery and electronics software. This is the only land locked SEZ , contrary to other zones which are situated in Port Towns and hence emphasis of type of units to be set up are those with high value and low volume. Proximity to Delhi and availability of skilled and dedicated manpower makes it ideal for setting up jewellery and software development units. These two sectors have contributed more than 30 per cent of the export turn over during the year 2008-09.

NSEZ has maintained high export growth rate for the past many years. Exports had increased from Rs. 42660 million in 2004-05 to Rs. 163080 million during 2008-09. Employment in the zone has gone up from 16284 in December, 2001 to 32550 in June, 2009. During the same period, number of operational units in the zone has increased from 141 to 245. Besides, one hundred units are under active implementation.

Besides, the jurisdiction of Noida Special Economic Zone is spread over EOUs in nine states namely Jammu & Kashmir, Himachal Pradesh, Punjab, Haryana, Rajasthan, Delhi, Uttar Pradesh, Uttaranchal and Union Territory of Chandigarh.

Exports from EOUs in the jurisdiction of NSEZ in Northern India have increased from Rs. 86155 million in 2005-06 to Rs. 108480 million in 2008-2009.

NSEZ has 343 developed plots of varying sizes, besides eleven standard design factory complexes that can accommodate one hundred seventy six units. mtrs.). One SDF block of sixteen units is also under construction. Future expansion has been strategically planned and when implemented fully, the zone would be able to provide 224 SDF units.

Infrastructure, supportive services and trade related facilities have been substantially upgraded during the last few years. NSEZ offers access to global telecommunication network, uninterrupted power supply and efficient local transport system. A high capacity telephone exchange has been installed in the Zone. An independent feeder line has since been provided for uninterrupted power supply. The reliability and quality of power supply has improved with the commissioning of 132 KVA sub station near NSEZ. Proximity to Delhi provides easy access to financial and commercial infrastructure of the capital. Customs Wing ensures prompt and on the spot clearances of export/import consignments. Besides, duty free oil depot, in-house post and telegraph office, sub- foreign post office, insurance and banking including ATM facilities, courier service facilities, industrial canteens and executive restaurant and travel/customs forwarding agencies have been provided. An extension counter of Punjab National Bank to collect central excise and customs duties has become operational. A solar energy based power plant is also proposed to be set up in NSEZ. Road from Noida to Dadri has been widened by NOIDA into a six lane highway. Housing is not a problem as large number of residential colonies have been developed in Noida.

Sector specific Infrastructure for software and gems & jewellery units has been developed. Satellite data link facilitates software exports. Earth station in Noida and the available VSNL outfit have further supplemented this facility. Highly trained and qualified manpower for software development is available in and around Delhi. A campus like environment, conducive for quiet and creative work prevails in the zone. Supportive infrastructure and easy availability of manpower make NSEZ an ideal location for setting up software units. Software units are allotted built-up space on priority.

Two exclusive complexes have been developed for jewellery units. MMTC has a full-fledged office in NSEZ for supply of gold which also provides packing credit facilities. Central Warehousing Corporation provides facilitation for handling and storage of jewellery cargo and services for completion of export formalities such as appraisement, processing of airway bills and transportation to the Airport. Sub- foreign post office facilitates export/import of jewellery samples. Besides, Trading Block consisting of 16 SDF units of 100 mtrs. each is existed in NSEZ.

NSEZ provides Pre-establishment support in obtaining clearances/approvals from various statutory authorities. NSEZ ’s developed infrastructure, procedural ease and supportive services are its main attractions.

NSEZ has been declared as a 'Port of Import & Export' on the lines of Inland Container Depot ICD and EDI on online filing facilities of application will be operational soon.

The service centre at NSEZ provides excellent facility for banking, insurance, sub-foreign post office, telephone etc. Cleanliness and sanitation of zone in accorded on top priority and dedicated staff of the NSEZ is always to extend their helping hand for overall growth and development of exports.

INFRASTRUCTURE AND SUPPORT SERVICES

NSEZ has 370 developed plots of varying sizes, besides nine standard design factory complexes that can accommodate one hundred forty four units. About one hundred fifteen units are occupied while 125 developed plots of small sizes (below 1000 sq. mtrs.) are available for allotment. Future expansion has been strategically planned and when implemented fully, the zone would be able to provide 224 SDF units.

Infrastructure, supportive services and trade related facilities have been substantially upgraded during the last few years. NSEZ offers access to global telecommunication network, uninterrupted power supply and efficient local transport system. A high capacity telephone exchange has been installed in the Zone. An independent feeder line has since been provided for uninterrupted power supply. The reliability and quality of power supply has improved with the commissioning of 132 KVA sub station near NSEZ. Proximity to Delhi provides easy access to financial and commercial infrastructure of the capital. Customs Wing ensures prompt and on the spot clearances of export/import consignments. Besides, in-house post and telegraph office, sub- foreign post office, insurance and banking including ATM facilities, courier service facilities, industrial canteens and executive restaurant and travel/customs forwarding agencies have been provided. An extension counter of Punjab National Bank to collect central excise and customs duties has become operational. Indian Oil Corporation is also setting up a duty free Oil Depot in NSEZ for supply of POL products to units for running boilers and DG sets including captive power plants. Road from Noida to Dadri has been widened by NOIDA into a six lane highway. Housing is not a problem as large number of residential colonies have been developed in Noida.

Sector specific Infrastructure for software and gems & jewellery units has been developed. Satellite data link facilitates software exports. Earth station in Noida and the available VSNL outfit have further supplemented this facility. Highly trained and qualified manpower for software development is available in and around Delhi. A campus like environment, conducive for quiet and creative work prevails in the zone. Supportive infrastructure and easy availability of manpower make NSEZ an ideal location for setting up software units. Software units are allotted built-up space on priority.

Two exclusive complexes have been developed for jewellery units. MMTC has a full-fledged office in NSEZ for supply of gold which also provides packing credit facilities. Central Warehousing Corporation provides facilitation for handling and storage of jewellery cargo and services for completion of export formalities such as appraisement, processing of airway bills and transportation to the Airport. Sub- foreign post office facilitates export/import of jewellery samples.

NSEZ provides Pre-establishment support in obtaining clearances/approvals from various statutory authorities. NSEZ ’s developed infrastructure, procedural ease and supportive services are its main attractions.

INFRASTRUCTURAL IMPROVEMENTS DURING THE YEAR 2003-2004

A number of new supportive services have been added to the existing infrastructure. Department of Posts has opened a ‘Sub Foreign Post Office’ and ‘Oriental Insurance Co. Ltd’ has opened an extension counter in NSEZ service centre building to take care of insurance needs of NSEZ units. Punjab National Bank’s extension counter has been made operational and all the units now are able to deposit their customs and central excise duties within the service centre at NSEZ.

Videsh Sanchar Nigam Ltd ( VSNL ) has strengthened their Data Link facilities to provide better communication / data transfer facilities, which is essentially required by software units.

Indian Oil Corporation Ltd ( IOC) has completed the necessary construction work for setting up a ‘ Duty Free Oil Depot’ and the same is likely to be made operational soon. Once made operational, units in NSEZ would be able to procure duty free HSD etc. from within the zone itself.

Recently Zone Administration has signed an MOU with NTPCESCL, toward uninterrupted quality power supply. Similarly, NSEZ has now been declared as a 'Port of Import & Export' on the lines of Inland Container Depot ICD. EDI on online filing facilities of application will be operational soon. SIFY has been allotted space in NSEZ for providing broadband facility.

Thus a number of additional services & facilities have been added for smooth functioning of NSEZ and further up gradation / improvement of facilities is under way.

FUTURE POTENTIAL

As an inland zone, NSEZ is ideally suited for manufacture of low-volume high value and skill intensive products. Gems and jewellery and electronics sectors have noticeable presence in the zone. It is planned to attract jewellery and electronics units to the zone in view of locational and infrastructural advantages. These units are given priority in approvals and allotment of space. One SDF block has already been allotted to electronic software units only.

The service centre at NSEZ provides excellent facility for banking, insurance, foreign post office, telephone etc. Cleanliness and sanitation of zone in accorded on top priority and dedicated staff of the NSEZ is always to extend their helping hand for overall growth and development of exports.