The government is planning to set up a special economic zone for the manufacture of equipment for non-conventional energy projects, particularly wind energy.

According to reports, German manufacturers have shown keen interest in the proposal. The government is considering the possibility of joint R&D and manufacture of systems and components for wind turbine generators. A number of proposals are under consideration, it is further learnt.

For instance, Future Energy Zone India Ltd -- promoted by Bangalore-based Malavalli Power -- is keen to develop such a project. The company is in talks with the Andhra Pradesh and Tamil Nadu governments to set up this venture.

Many approvals, few notifications....

Meanwhile, the government has so far given formal approval to 105 special economic zone projects, out of which only 12 have been notified. Land acquisition has been the biggest impediment to SEZ notification.

An overwhelming number of SEZ projects are yet to be notified because the proposed developers have not reverted to the Union commerce ministry with full land details. Meanwhile, the government plans to use the time lag between formal approval and notification to gear up and set up administrative machinery at the SEZs. For instance, each SEZ will be equipped with a customs house.