The Hindu : State's export policy to be put under scanner

Online edition of India's National Newspaper
Sunday, Mar 07, 2004

Kerala

Kerala

State's export policy to be put under scanner

By Our Special Correspondent

KOCHI, MARCH 6 . Kerala's export policy is to be put under the scanner by a group of experts at a workshop to be organised in Kochi under the auspices of the Kerala Industrial Infrastructure Development Corporation. When the buzzword is `to produce for the international market', the workshop assumes significance as a lot of stress is being given on export promotion in the context of the international economic scenario. Recently a State-level export promotion committee was constituted, which has drafted a pro-active policy for the State.

In fact, institutional mechanism for export facilitation has been a crying need. The State-level committee has been entrusted with the task of scrutinising and approving specific projects for providing infrastructure facilities for the development and growth of exports. It is also deemed to oversee the implementation of schemes under the assistance to States for infrastructure development for export and allied activities.

In Kochi, the setting up of a special economic zone has been hailed as a step in the right direction. It is to be considered as an enclave, a foreign territory outside the Customs territory of the country with special rules for facilitating foreign direct investment for export-oriented production. In addition to CSEZ, the State Government is also planning to develop the Cochin Port Area as a special economic processing zone for promoting exports. It is also planned to establish SEZs in other parts of the State based on need and feasibility studies.

The draft policy notes that the Government woud be taking up infrastructure development as a core area for export promotion. The huge inflow of NRI funds, particularly from the Middle East, remitted by expatriates from here will be canalized for infrastructural development under a separate policy formulation. The Government should encourage implementation of quality management system and environment management system on a par with international standards, as consistent quality, timely delivery, constant interaction with customers, eco-friendly methods in production, etc., would help entrepreneurs to get an edge in international business.

The Government should set up large industrial estates exclusively for product specific manufacturing units and encourage even existing units to gradually move to such estates by offering suitable inducements so that it would help to derive economies of scale of operation, specially with regard to environment-related matters, by installing common effluent plants and other pollution control devices. The Government should also take steps to declare export activity as essential services for avoiding strikes/work to rule, etc., in this sector, the draft points out.

Another suggestion is to declare some centres as towns of export excellence like Alappuzha for coir, Kannur for handlooms and Kollam for cashew. Warehousing facilities should be set up at concessional rates and provided to the exporters.

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