Export Processing zones in India

witnessed the establishment of 5 zones. There were however no significant changes in other laws
and procedures pertaining to the EPZs.
III.3 The Consolidating Phase : 1991-2000
In 1991, a massive dose of liberalization was administered in the Indian economy. In this
phase of new policy initiatives, wide-ranging measures were initiated by the government for
revamping and restructuring EPZs ( See Kundra 2000 for details). This phase was thus marked
by progressive liberalisation of policy provisions and relaxation in the severity of controls and
simplification of procedures. Arora (2003) shows that there were in all 146 circulars on
EPZs/EOUs issued by the Central Board of Excise and Custom, DGFT and RBI during this
period of 10 years. These constituted over 62% of total circulars issued on EPZs/EOUs till 2003.
The focus had been on
• delegating powers to zone authorities,
• providing additional fiscal incentives,
• simplifying policy provisions and
• providing greater facilities.
The scope and coverage of the EPZ/EOU scheme was also enlarged in 1992 by
permitting the agriculture, horticulture and aqua culture sector unit also. In 1994, trading, reengineering
and re-conditioning units were also permitted to be set up.
II1.4
The emergence phase : 2000 onwards
This period has witnessed a major shift in direction, thrust and approach. The EXIM
Policy (1997-2002) has introduced a new scheme from April 1, 2000 for establishment of the
Special Economic Zones (SEZs) in different parts of the country. SEZs will be permitted to be
set up in the public, private, joint sector or by the State Governments with a minimum size of not
less than 1000 hectares. SEZ is an almost self contained area with high class infrastructure for
commercial as well as residential inhabitation. The units operating in these zones are to be
deemed as outside the country’s customs territory and will have full flexibility of operations.
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