FTWZ is a special category of special economic zone (SEZ) which is governed by the provisions of the SEZ Act, 2005 and the SEZ Rules, 2006. Since the policy has been formed, Arshiya International Ltd, a leading provider of integrated supply chain and logistics infrastructure solutions in India has invested in creating five such FTWZs spread all across the length and breadth of the country. The first of Arshiya’s FTWZ was set up at Mumbai (Panvel), which is spanning across 165 acres. The facility has been operational since late last year.
Recently, Arshiya has signed a contract with Soilmec India. The latter is a subsidiary of Italy based leader in design, manufacture, and distribution of equipment for the ground engineering industry. The deal will ensure Soilmec turn Arshiya's first FTWZ at Panvel as its regional distribution hub. According to the deal, Soilmec will make use of Arshiya’s Mumbai FTWZ for importing large sized machines like diameter piles, cranes, hydromill, grabs and microdrilling equipments as well as the spare parts required to service these heavy engineering machines.
Sanjoy Chakrabarty, managing director of Soilmec India commented on the deal saying, “The Indian market place is robust with infrastructure development and such an FTWZ offers us with the flexibility to serve the market just in time and cut down on long lead times that become impediments to our business. The FTWZ that Arshiya has developed along with its integrated services brings us the right mix to capitalise on the opportunity available in India and we look forward to this zone allowing us to serve the Indian customers better with our products.”
Ajay S Mittal, CMD of Arshiya International Ltd said, “Infrastructure development in all aspects of India’s economy is one of the most important variables in sustaining growth in the economy. Thus there is a huge market in India itself for advanced technology heavy engineering products provided by world class companies such as Soilmec. FTWZ will be a game changer for Soilmec as it will provide it flexibility to import equipments duty deferred in the zone, warehouse it for extended period and exhibit it to customers before final sale, either in India or nearby regions reducing the sales lead time considerably.”
Spreading logistics’ network
In an attempt at boosting FTWZ in India, Arshiya is also expanding its logistics infrastructure footprint across five strategic locations across the nation. The company is developing and operating FTWZs across North (Khurja in the state of UP near Delhi 315 acres), Center (Nagpur – 110 acres), South (Chennai) and East of India. Complementing each of these FTWZ will be domestic distribution hubs ‘Distriparks’, which would be connected by Rail Terminals and freight train network. Arshiya Rail Infrastructure is also the second largest Private Container Train Operator (PCTO) presently operating 15 trains pan India, with a planned induction of 150 in coming years.
Priyanka Roy Chowdhury |
The Free Trade and Warehousing Zone (FTWZ) Scheme in India was introduced under Chapter 7A of the Foreign Trade Policy 2004-09 in order to create trade related infrastructure. It aims to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency, with the aim of turning India into a global trading hub.
