Special Economic Zone was established in 1984 with the objective of promoting
foreign direct investment, enhancing foreign exchange earnings, and creating
greater employment opportunities.
The Zone was converted into a Special Economic Zone on 1.1.2003. The added
objective of the SEZ is to facilitate exports through reduction of transaction
costs. To this effect, the Ministry of Commerce and Industries has introduced special
features that include Offshore Banking Units and Container Freight Stations to
be set up within the Zone, besides liberalised Customs procedures. It is
expected that the cost, time and effort saved would translate to higher exports
from the Zone.
SEZ is a
multi-product Zone housing 117 functional units. Another 27 units
are under various stages of implementation. The export turnover for the year 2006-2007
was Rs.2462 crores.
Garments, software and engineering products contributed more than 50% of export
value. Recent growth has been in engineering sector with special reference
to automobile ancillaries.
Located in Chennai (formerly Madras), the Zone is under the administrative
control of the Ministry of Commerce and Industries and caters to the needs of both units in the
Special Economic Zone as well as of 100% EOUs located in Tamil Nadu, Pondicherry
and Andaman & Nicobar islands. The Zone is headed by Development