Action plan prepared to develop the area
Krishnagiri: The State Government's plan to establish a Special Economic Zone (SEZ) near Hosur has got a renewed thrust. The Tamil Nadu Industrial Development Corporation (TIDCO) has obtained `in-principle' approval from the Ministry of Commerce and Industry for establishing SEZ at an estimate of Rs. 512 crore.
Pricewater House Coopers carried out a market survey and feasibility study of the SEZ in 2005. It is learnt that the district administration has sent a proposal to the Tamil Nadu Government to get administrative sanction for the project.
The district administration has identified land in an expanse of 1,053 hectares in the villages of Bairamangalam, Kundumanapalli in Denkanikottai taluk and Achettipalli, Onnalvadi and Senamoa villages in Hosur taluk.
The SEZ will be product based and preference will be given to Information Technology, ITES, food processing, engineering and other types of industries, according to highly placed sources in the district administration.
The proposed SEZ will provide direct and indirect employment to as many as 71,802 persons. The SEZ is expected to kick start with 500 IT and ITES personnel by 2009. An action plan has been prepared to develop the area where the SEZ is proposed to be established. Proposals to four-lane the road from Bangalore to Bairamangalam to a distance of 48 km, completion of inner ring road to reduce traffic congestion, construction of expressway and beautification of the industrial town also form part of the action plan.
Companies investing in the SEZ will enjoy fiscal incentives, including exemption from customs duty, excise, cess, sales tax, and income tax, stamp duty and 10 years tax holidays on profits derived from the SEZ. The companies will also get 100 per cent Foreign Direct Investment (FDI) and duty concessions on exports and imports.
The facilities in the SEZ will be on par with other SEZs in the country. Good connectivity, including road and rail networks to Bangalore and Chennai, availability of labour and cheap land costs, quality power and telecommunication facilities and integrated world class infrastructure will be provided in the SEZ, sources point out.