Free Trade and Warehousing Zones in India
The Central Government of India has plans to approve 8 Free Trade and Warehousing Zones(FTWZs) in India of which 4 have already been notified by the Government. 3 FTWZs are already operational.
Private investors have invested nearly 3400 crores in these FTWZs till date. The Central Government has made no investments in these CTWZs.
- An FTWZ is a special category of Special Economic Zones (SEZ) whose objective is to create a trade-related infrastructure that will facilitate the import/export of goods & services.
- The trade transactions can be carried out in free currency.
- The government aims to create a world-class infrastructure for warehousing(storage) of various products using state-of-the-art equipment, transportation, and handling facilities, commercial office-space, water, power, communications, and connectivity facilities.
- It will be created with a one-stop clearance of import/export formalities to support the Integrated Zones(IZs) as international trading hubs .
- The FTWZs would be established in areas with good connectivity like seaports, airports or dry ports to ensure easy transport.
- These units will be exempt from service tax.
- The setting up of FTWZs will promote trade and commerce both within and with the outside of the country.
Indian Strategic Petroleum Reserves Ltd.
The Indian Strategic Petroleum Reserves Ltd. (ISPR) have been formed by the Central Government as a form of emergency petroleum reserves. The formation of the ISPRs will ensure energy security. The crude oil storages as part of the ISPRs are to be constructed in underground rock caverns and are located on the east and west coast of India: Visakhapatnam, Mangalore, and Padur. Crude oil from these storage installations is envisaged to cater to the Indian refineries either through pipelines or a combination of pipelines and coastal shipment.