Free Trade Zone - Government of India Policy Background:
• The Government of India had announced in the Foreign Trade Policy 2004-09 to set up Free Trade Zones (FTZ) to create trade related
infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency.
• On June 23, 2005, the Parliament of India passed the Special Economic Zones Act 2005 and on February 10, 2006 Government of India
notified Special Economic Zones Rules 2006.
• The Free Trade Zones (FTZ) is a special category of Special Economic Zone and is governed by the provisions of the SEZ Act and the Rules.
• 100% Foreign Direct Investment is permitted in development and establishment of FTZ.
• FTZ is a deemed foreign territory and all equipment and materials sourced from the Domestic Tariff Area will be considered as Imports by
the FTZ and vice versa
• All benefits available to the SEZs shall be applicable to the FTZs
• The FTZ shall be under the administrative control of the Development Commissioner (DC)
GMR Hyderabad International Airport Ltd.
GMR Hyderabad International Airport Limited (GHIAL) is a joint venture company promoted by the GMR Group (63%) in partnership with government of India (13%), government of Andhra Pradesh (13%) and Malaysia Airports Holdings Berhad (11%). The Company was incorporated to design, finance, build, operate and maintain a world class Greenfield airport at Shamshabad, Hyderabad. The project is based on the Public Private Partnership (PPP) model and is structured on a Build, Own, Operate and Transfer (BOOT) basis.
The airport which was commissioned in a record time of 31 months, has an initial capacity of 12 million passengers per annum (MPPA) and 100,000 MT of cargo handling capacity per annum. The Project has the flexibility to increase capacity to accommodate over 40 MN passengers and 1 MN MT per annum and shall be developed in a phased manner.
Located strategically at the geographical centre of India within a two hour flying time to all the major cities in India, Hyderabad is well positioned and within a four hour radius from all major cities in the Middle East and South East Asia. Thus, it has the potential to not only become one of the main air travel hubs in India, but also an important center for destination-cum-transit location for travel between the East and the West
The modular integrated Cargo facility is spread over 14,330 sq.mts with a capacity to handle 100000 MT annually. Adjoining that is an exclusive apron to accommodate up to Code-F aircraft. The airport provides two Animal Quarantine Stations. The first Quarantine Station is located at the International arrivals and the second, in the Cargo Satellite Building.
We are developing India’s 1st Airport-based FTZ. Currently we have 20 acres as multi-purpose FTZ to compliment supply chain distribution, warehousing, storage, value addition & packaging and present value offering to all major international clients. The FTZ is adjacent to our Main and Alternate Runways. We have signed two anchor clients and construction is underway. One of our anchor clients, Turbo Jet Engines Pvt Ltd will set up Repair and Calibration services facility for Fixed & Rotary Wings and aircraft parts including Evacuation Slides, Life Rafts, Helicopter Floats & Vests, Fire Extinguishers, Oxygen Bottles/Masks and Air Bottles etc. The operations also encompass Repair & Calibration of Aircraft part where the Original Equipment Manufacturers (OEM) / Airlines can send equipment from any part of the world to the Turbo facility at the FTZ. The other customer SAS Applied Research Materials is a leading supplier of rare and high end research chemicals to several Indian and multinational companies that will set up operations at the FTZ with the objective of maximising its operational efficiencies.
Unique features of exclusive Airport based FTZ at RGIA:
We can construct customized facility to meet individual clients specifications and requirements
Highly secured and safe zone for business operations as it lies in the airport premises
Close proximity to Air Cargo terminal for logistics facilitation
Availability of 2 Runways for uninterrupted operations in case the main Runway is not available due to an Emergency
24X7 Power, Water supply
On the east of the airport is the 250 acre Multi Product SEZ that houses, amongst others, the Maintenance Repair and Overhaul (MRO) facility, developed by the GHIAL-MAS Joint Venture. CFM International, a 50-50 joint venture between Snecma (SAFRAN Group) of France and General Electric Company (GE) of the United States has also established its aircraft engine Maintenance Training Centre.
Free Trade Zone (FTZ) is of 20 acres situated within 250 acres of Multi Product SEZ.
Free Trade Zone
Definition as per the SEZ ACT, 2005
“Free Trade and Warehousing Zone” means a Special Economic Zone wherein mainly trading and warehousing and other activities related thereto are carried on”
Activities allowed inside the FTZ as per the SEZ, Rules 2006
Trading with or without labelling, packaging or repackaging, re-sell, reinvoice or re-export of imported goods, assembly of complete knocked down and semi knocked down kits.
To read more, download the pdf below
Free Trade Zones - GMR Hyderabad