Synonymous With SEZs

Then comes the glaring lack of consideration in allocating zones in inland regions, where freight viability by air or waterways – a factor synonymous with SEZs – is a tough ask, in most cases, geographically infeasible. With SEZs being allowed to take shape all across the country sans regard to such constraints, the very prospect of export units instantaneously arriving to set shop in scores of SEZs would tend to appear bleak. It doesn’t take Einstein to prefigure the consequence in this case: If developers involved with SEZs fail to recover their infrastructural expenses, which could well mean thousands of crores in many cases, the upshot will be fiscal mayhem not just for them, but for a multitude of banks & lending institutions, shareholders and bond purchasers.

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Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006