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Thursday, December 9th, 2021

Non-Operational NSEZ Deepening Economic Crisis

Amidst the lockdown scenario, Indian Economy is in dire strait, bringing joblessness, ensuring to make NSEZ operational, is the crying need of hour

In the wake of the notification issued by the Ministry of Home Affairs on 15th has allowed all the SEZs of India to start operations with 50% capacity, but NSEZ, Noida has not started yet, awaiting orders from local authority. The delay in operation is supposed to deepen the already ongoing economic crisis amidst the lockdown.


‘’Noida SEZ is administered by its Authority headed by the Development Commissioner who is equivalent to the rank of Additional Secretary. This Authority is competent enough with full strength of security to ensure that factories are run as per the guidelines defined by the Ministry of Home Affairs’’, says Mr. Vilas Gupta, Chairman, EPCES (Export Promotion Council for EOU and SEZ) Northern India.


He further adds, ‘’Factories within Noida SEZ are 100% export units. Many factories either have their shipments ready to export or at finishing stage to export. Further holding these factories to start their operation will not only put them into heavy losses but their future business most likely maybe transferred to China factories that are fully operational. These may also lead to unemployment among over 50000 workers working in Noida SEZ’’.


Factory owners are going through insecurity about the future of their businesses. Their orders are getting cancelled by the overseas buyers. The shipments ready can’t be exported till local administration allows them to start the operation. Even the shipments at the finishing stage may get damaged as lying openly at various stages. This may put the factories under heavy losses. Business owners are of the opinion that if the factories are not allowed to operate immediately, this may force them to reduce the strength of their staff and workers, which will lead to vast unemployment.


Over 50,000 workers are employed in NSEZ. Not only this, business owners have a fear that if the factories are not allowed to work their buyers may shift their orders to China where the factories are in full operation. Factory owners claim that units in NSEZ are doing 100% export and their factories are inspected by overseas buyers to meet all the necessary compliances.


In the NSEZ periphery, about 92 per cent of the units functioning are of the Micro, Small & Medium Enterprises (MSME) segment. The closure of these industries will cost heavily to the economy as the majority of the workforce is employed here, awaiting for their respective units to open and get functional. Despite the order of the Union Govt to start functioning, NSEZ, NOIDA is still not functional, which raises various employment and economic concerns.


Following the guidelines issued by the MHA, the local authorities need to cooperate with the NSEZ authorities to start the functioning of the units. As far as the NSEZ, NOIDA is concerned, it is administered by its own Authority headed by the Development Commissioner, a highly ranked government official. The authority itself can monitor the factories following the guidelines of MHA once it gets permission from local authorities. The NSEZ is a closed gated complex with a single gate used for entry and exit.



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