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World's biggest Free Trade Zone to be built!

Phil McLease | 29.08.2001 00:09

This sinister article appeared in the Business section of yesterday's Independent. I have added emphasis to important bits by putting them in CAPITAL LETTERS.

Western investors offered tax deals to build India's new city

By Saeed Shah
28 August 2001


India is seeking to attract western multinational companies to invest $15bn (£10.4bn) in a new manufacturing and logistics area planned for Bombay.

In one of South Asia's most ambitious economic projects, an area to be known as Navi Mumbai has been designated a SPECIAL ECONOMIC ZONE and granted FOREIGN TERRITORY STATUS by the Indian Government.

A whole new city will be built on a 44 sq km site south of Bombay, adjacent to the Jawaharlal Nehru Port. The zone will have its own airport, and ITS OWN LABOUR LAWS and TAX REGIME.
The Maharashtra state development corporation, Cidco, is behind the plan, which will be a PUBLIC-PRIVATE PARTNERSHIP.

Cidco said the scheme is the largest current new town development in the world and it aims to have a population of 2 million within the next few years.

The plan is modelled on other SPECIAL ECONOMIC ZONES which have powered economic growth in Asia and the Middle East, especially Dubai's Jebel Ali Free Zone and Shenzhen in China. Bombay will compete with these areas to attract foreign business.

Suhas Thakar, general manager of Cidco, said: "The idea is to target LARGE MULTINATIONALS to form a manufacturing hub as well as logistics base for the whole Asian, Gulf and East African region. The main requirement is that the industries should be high technology, HIGH-VALUE ADDED companies."

A large part of the necessary basic infrastructure has already been built. Arthur Andersen, the financial advisers to the scheme, are preparing a business plan, which should be ready in October.

A CORPORATE TAX HOLIDAY FOR 10 YEARS will be offered to attract companies to Navi Mumbai, which will be a DUTY-FREE ZONE. Although export-orientated industries are targeted, unrestricted access will be available to India's domestic market. IT IS HOPED THAT LOW LABOUR COSTS WILL PROVE ATTRACTIVE.


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End of article

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Now does that sound dodgy or what?!

Phil McLease

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