INTERVIEW WITH MALINI SHANKAR

Malini Shankar (IAS), is the Joint Development Commissioner of the Madras Export Processing Zone. Her first assignment was as Assistant Collector, Vardha. Subsequently she worked in Chandrapur as CEO - Zilla Parishad, Director - World Bank project water supply, Collector - Nagpur district, Director - Women and Child development, Additional Commissioner - Industries. Its been more than a year since she took charge as the Joint Development Commissioner of MEPZ.

Malini Shankar speaks to www.chennaibest.com about MEPZ

MEPZ falls within the jurisdiction of the Ministry of Commerce. It caters to all the 100% Export Oriented Units within Tamil Nadu, Pondicherry and the Andaman & Nicobar Islands. Units can be set up outside MEPZ and yet avail the same incentives. It was started in the year 1986. It covers about 260 acres of land. The purpose was to attract foreign direct investment and collaboration, thereby enhance foreign exchange earnings.

There are around 90-95 active units. The number of active units varies because many units are affected due to factors like recession, price wars from China (China is known to offer competitive rates to capture the market) and change in technology.

The total turnover last year was about Rs 537 crore. 33% of MEPZ's income comes from garments, 20% from software, 10-15% from Engineering goods, 10% from perfumes; the rest is scattered among musical instruments, soft toys etc.

The company should fulfil an export obligation of 1 million USD or 5 times the value of the imported Capital goods over a period of 5 years. Net forex performance is prescribed by the Exim policy of that year. Ministry of Commerce prescribes the requirements in Chapter 8 and Chapter 9 of the Exim policy.

• Chennai has an all-season harbour
• The International Airport is just 7 kms from MEPZ
• Pollution free environment
• Uninterrupted power supply. The MEPZ area has a statuatory exemption from power cuts.
• Abundant supply of skilled and managerial manpower
• All the export of capital goods are free of duty. Over and above the export obligation, whatever is sold in the local markets has only concessional duty.
• An income-tax holiday upto the year 2010.
• For the existing company the tax holiday is for 10 years from the year of inception.
• All the approval, monitoring, Government clarifications etc. are obtained via the in-house customs clearing, making it easier for companies.
• There is a post-office functioning inside the zone

A dedicated telephone exchange is to be set up to facilitate high speed connectivity and data-transfer.

Entrepreneurs who wish to set up a unit in the zone should apply in the prescribed form which can be obtained free of cost from the Development Commissioner's Office or can be downloaded from the Net. Completed forms in 10 copies should be submitted to the Development Commissioner along with a fee of Rs. 1000/- and a detailed Project Report. Decision on the application is taken within 14 days by the Development Commissioner under the Automatic Approval Scheme.

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