MIDC to ink pact with Apeda on setting up AEZs today

Sanjay Jog

Mumbai, Jan 6: The state-run Maharashtra Industrial Development Corporation (MIDC) will ink a memorandum of understanding (MoU) with the Agriculture and Food Products Export Development Authority (Apeda) on Monday for setting up agriculture export zones (AEZ), specially for grapes and value-added products, including wines, in six districts. These AEZs would be established in Nashik, Ahmednagar, Pune, Satara, Solapur and Sangli.

MIDC chief executive officer Jayant Kawle told The Financial Express that Apeda, which is the nodal agency appointed by the Centre for the development of AEZs, would supplement the efforts of the state government for facilitating agri exports. Agricultural exporters would be eligible for the facilities of Export Promotion Capital Goods (EPCG) scheme which were hitherto available to direct exporters. According to Mr Kawle, exporters of value-added agri products such as wine would be eligible for sourcing duty free fuel for generation of power, provided the cost component of power in the ultimate product was 10 per cent, or more, and the input-output norms were fixed by the advance licensing committee of the Director General of Foreign Trade (DGFT).

Similarly, input output norms can also be fixed for sourcing other inputs such as duty-free fertiliser and pesticides for cultivation purposes. According to the Centre’s AEZ policy, agri exporters would enjoy the facility to move, or to shift these capital goods within the zone, provided they maintain accurate record of such movements. However, such equipments should not be sold or leased by the licence holder.

Mr Kawle said that the state government proposes to set up such product specific AEZs across the state on the lines of Punjab for potatoes and Tamil Nadu for floriculture. “These are in proposal stages,” he added. The state government has been pursuing AEZs for floriculture in Talegaon, Pune district, mango in Ratnagiri district, pomagranades in Solapur, Sangli district and orange in Vidarbha region.