Professional Documents
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No- 08020441017
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OBJECTIVE To study the concept of F.T.W.Z and its relevance in the current scenario
Approximately 10-15 percent of a product's cost represents logistics-related costs Globally, the logistics industry is valued at US$3.5 trillion and the Indian logistics industry is currently estimated at US$90 billion India ranks 39th in terms of the logistics performance index and indicators India spends US$1,148 in handling costs to import one cargo container and US$820 to export a container India spends 13% of its GDP on logistics
www.google.com/worldlogisticsreport-2010 Source colliers yearly report 2009
Growing at a rate of 30-40 percent per annum India has a total warehousing space of approx 1,800 million sq ft, of which only 8 percent (144 million sq ft) is in the organised sector
Unorganised sector
Inadequacy in the number of facilities available Taxation
The Government of India had announced in the Foreign Trade Policy 2004-09 to set up Free Trade and Warehousing Zones (FTWZ) 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 and Warehousing Zones (FTWZ) is a special category of Special Economic Zone and is governed by the provisions of the SEZ Act and the Rules.
Source www.ftwz.com
Source www.ftwz.com
Customised categorised warehouses ~ chemicals, food, electronics, oil, etc. Sophisticated freezer / cooler facilities Break bulk, containerised, and dry cargo storage facilities
Rain water and storm water drainage Effluents disposal system Telecom cables
Administrative building and office Ancillary building Canteen Services building Covered parking Roads
FTWZ Utilities
Horticulture and landscaping
Boundary wall
Water supply and sewerage
FTWZ POSITIONING
Principally governed by the SEZ Act 2005 and SEZ Rules 2006 100% Foreign Direct Investment is permitted in development and establishment of FTWZ FTWZ is a deemed foreign territory Minimum size of the warehousing stipulated at 1 lakh sq mtrs All benefits available to the SEZs shall be applicable to the FTWZs
The FTWZ shall be under the administrative control of the Development Commissioner (DC)
www.google.com/sezact2005
Fiscal and Regulatory Benefits Duty Deferment Benefits Income tax(section 80IA) and Service Tax exemptions for developers and users Excise Duty Exemption
Infrastructure Benefits Single Product Storage Facilities Shared warehousing Shared Equipments
FDI inflow
FTWZ Benefits to Region / State
Employment potential
Attractiveness of support/ancillary industries
Competitiveness of industries
www.google.com
After the fiasco of 2008-09, LEAN MANUFACTURING is the shout out Improved THROUGHPUT is the key word for manufacturers now For INDIA, time and cost constraints are the biggest hurdles in this GOVT. agencies and red tapism Need for a viable integrated system of warehousing and logistics to avoid the same
The art of logistics - integrate the strategic, operational, and tactical efforts of businesses -ensure that the right material reaches the right place at the right time The improvement of the taxation system, infrastructure and transparency in the system will pave the path of success and bright future for the logistics and warehousing sector
F.T.W.Zs are the need for the future for the sheer number of benefits they provide
Improvements in both cost and time are the key drivers for this concept Location is the most important consideration along with the connectivity Commitments need to be strictly adhered to as the warehousing companies sign forward contracts with their clients
Thank
you