Customer satisfaction of MEPZ--special economic zone.

Ganapathi, R. ; Malar, S. Anbu

India is rich in human resources. An effective utilization of human resources can boost the development of India. Hence, both Central Government and State Governments have prepare the number of plans for the economic development. Among the many plans, one of the plans is establishment of Special Economic Zone (SEZ). The very purpose of establishing SEZ is providing all infrastructural facilities, marketing assistance, financial assistance and incentives in all aspects. If all the facilities are provided, certainly, many entrepreneurs may come forward to establish their units in SEZ voluntarily. Mainly labour intensive units are established in SEZ for the benefit of the local area people. Some of the existing Export Processing Zones are converted into Special Economic Zones. One such is Madras Export Processing Zone (MEPZ) which got converted into Special Economic Zone. The researchers wanted to know the impact of conversion on the functioning of the units within the zone area. Many more multinational corporations are very much interested in establishing their sister concerns and branches in India. Hence, it is the need of the hour to know the functioning of units in Special Economic Zones. The present study highlights the ways of functioning of units in SEZ erstwhile called MEPZ.

Introduction

It is one of the biggest controversies that India has seen in its economic history and it refuses to die down soon. Of late, each time a Special Economic Zone (SEZ) is announced, it runs into trouble with various groups, within and outside the government. So what exactly is the trigger for the controversy? Are SEZs as is being pointed out, the drivers of the economic engine or the tools for further exploitation of the poor? Each side has its own debate to put forth. India Times looks at both angles to the issue and wonders whether a middle path can be achieved. According to Aseem Shrivastava (2007), "SEZ is a specially demarcated area of land, owned and operated by a private developer, deemed to be foreign territory for the purposes of trade, duties and tariffs with the intent of increasing exports. Within the SEZ production can be carried out by investing companies utilizing a large number of concessions--Tax exemptions, guaranteed infrastructure and the relaxation of labour and environmental standards".

One of the earliest and most famous SEZs were established in China in the early 1980s. The most successful SEZ in China, Shenzhen, has developed from a small village into a city with a population of over 10 million within 20 years. Following the Chinese examples, SEZs have been established in several countries including Pakistan, India, Iran, Jordan, Poland, the Philippines, Russia and Ukraine. According to World Bank estimates, as of 2007 there are more than 3,000 projects taking place in SEZs in 120 countries worldwide. Considering the need to enhance foreign investment and promote exports from the country and realizing the need that a level playing field must be made available to the domestic enterprises and manufacturers to be competitive globally, the Government of India had in April 2000 announced the introduction of Special Economic Zone policy in the country. As of 2007, more than 500 SEZs have been proposed, of which 220 have been created as of date. This has raised the concern of the World Bank, which questions the sustainability of such a large number of SEZs.

Importance of the Study

Acquisition of technological capability through special economic zones: Many Asian countries have adopted the special economic zones. This popularity is to foster and stimulate the economic development. Encouraged by the success of SEZ in other Asian countries in the 1960's and 1970's, China set up four SEZ in 1979, including one in Shenzhen. As a result of its extraordinary growth and success, Shenzhen SEZ has become itself a positive example and impetus for the rest of the world. Although a large number of SEZs are already in operation around the globe, it is likely that a growing number of SEZs will continue to flourish both in Asia and elsewhere. This is because the SEZs have proved to be a successful means of fostering economic growth and prosperity. For example, within China, Guangdong's other two SEZ do not lag far behind Shenzhen SEZ, which is perhaps the most successful example of a SEZ in the world having enjoyed explosive growth.

Madras Export Processing Zone (Mepz)

MEPZ was established in 1984 with the objective of promoting foreign direct investment, enhancing foreign exchange earnings and creating greater employment opportunities. The zone was converted into a SEZ on 01.01.2003. The added objective of the SEZ is to facilitate exports through reduction of transaction cost. To this effect, the Ministry of Commerce and Industry has introduced special features that include offshore banking units, container freight stations besides liberalizing customs procedures.

MEPZ--SEZ is multi product zone housing 101 functional units. Another 8 units are under various stages of implementation. The garments, software and engineering products contributed more than 50% of the export value. Recent growth has been in the engineering sector wide special reference to automobile ancillaries. This SEZ caters to the need of both units in the Special Economic Zone as well as of 100% EOU located in Tamilnadu, Pondicherry and Andaman Nicobar Islands.

Locational Advantages of Mepz

MEPZ--SEZ is easily accessible from the city centre by efficient public transport, suburban railway, buses and cabs. Located on the national highway 45, it is located 6 Kms from the International Airport and 24 Kms from the seaport. It is a mere 45 minutes ride from the city centre.

The Government of Tamilnadu has notified MEPZ--SEZ as a public utility whereby the units are protected from illegal strikes. All labor laws of the land are however applicable to the units located in the zone and it has the following merits as

* Pollution free environment

* In-house customs clearance facility

* Uninterrupted power supply

* Abundant supply of skilled and managerial manpower

* Proximity to airport and suburban railway station.

There are around 190 units inside the Special Economic Zone employing 21,000 laborers. With three to four large units to come up, the number of workers is likely to double in the next couple of years. We need to have necessary infrastructure in place to meet such a huge expansion. Moreover, the shortage of the space in the MEPZ is diverting the large firms to Mahindra Industrial Park, which is a private special economic zone. Further MEPZ is trying to reallocate 30 acres of land occupied from the sick units, which can be retrieved and given to new clients.

Infrastructure of Mepz

It has spread over an area of 262 acres (109 hectares). It offers developed plots as well as built up factory space. Plot size ranges from 1 to 5 acres, and allotment is on 15 years lease basis. Built up space of Standard Design Factory (SDF) varies from 300 to 500 sq. m. It's allotted on 5-year renewable lease. The State Government have made adequate arrangements to provide the much needed infrastructure facilities such as power supply, water connection and communication.

Services Rendered by Mepz

The MEPZ--SEZ offers the following services to the units located in its complex as well as to the Export Oriented Units (EOUs) located in the State of Tamilnadu, Pondicherry and the Union territory of Andaman Nicobar Islands.

Clearance of proposals for automatic approval including foreign investment

Allotment of land and ready built sheds

Release of water connection and telephone connection

* In-house Customs clearances such as filing of shipping bills, bills of entries, examination of goods, customs escort services wherever required

* Endorsements in SOFTEX forms

* Allotment of Import Export Code Number (IEC)

* Acceptance of Legal Undertakings (LUT)

Execution of lease deeds for plots and sheds allocated

* Issuance of green card

* Import of capital goods listed attestation

* Clearing goods for sale in DTA

* Maintenance of roads inside MEPZ complex, street lighting and avenue plantation

* Round the clock security services

* Liaison with Central, State and other Government agencies

* Redressing and resolving problems encountered by the EPZ, EOUs

* Dissemination of information about the units and its products

* Directory listing on the website, forwarding the trade inquires

* Distributing awards for top performers and

* Performs as a single contact point for the units located inside MEPZ as well as for the EOUs located in Tamilnadu, Pondicherry and Andaman Nicobar Island.

Simmering discontent over SEZs: The consensus among experts seems to be that the economic and other costs of SEZs are likely to outweigh those so-called benefits because of the way the rules have been formulated. The RBI has, thus, stated that SEZs be treated as commercial real estate rather than as priority sectors of proposition for bank lending. Though much of criticisms of SEZs have centered on the land acquisition process, the policy itself is riddled with flaws. We don't need to learn lessons from China any more, because the main lesson cannot be from outward orientation. We should concentrate on making the additional reforms for reducing trade barriers.

Freeze on SEZs has upset investors: The Special Economic Zones which have been approved but put on hold in Tamil Nadu due to the controversy over land acquisition in various States, can be given the go-ahead as most of them were being setup on the land belonging to the Small Industries Promotion Corporation of Tamil Nadu (SIPCOT). The major investors are upset over the freeze and might explore the option of moving to countries like Vietnam, if the Government did not relax the norms or lift the freeze.

Nature of Products Manufactured in Mepz

1. Woven Fabrics

2. Automobile Machine Parts

3. Readymade Garments

4. Parts and Accessories of Motor Vehicles Pad Assembly

5. Granites Slabs

6. Frozen Marine Products

7. Software Development Services / IT Services

8. Mechanical Castings, Tools / Jigs fixtures

9. Export of Designer Candles of Assorted Shapes

10. Recycling of all types of ferrous and non-ferrous metal and electronic scrap

11. Gherkins and other vegetables

12. Rear Axle Housings

13. Metal Furniture

14. Grade Cashew nuts, Vegetables Oil

15. Rose Cut Flowers

16. Plain and Studded 21 CT and 22 CT Gold Jewellery

17. Fruit Pulp in Aseptic Bags

18. Automotive Components and Turbo Charges

19. Leather Products

20. Mushrooms

Statement of The Problem

In the current scenario, the foreign trade plays the major role in deciding the countries GDP, and other parameters of growth. The SEZs are also proposed to be set up by private sector. The SEZ can be set in any business area approved by the State Government. Hence, it is assured that it can follow the rules and regulations framed by the countries where the business transactions are extended. But if the State Government is required to govern these SEZ it's a mind-breaking puzzle for any common person. There arise the following questions:

1. What will be the customer's nature and capital requirement to enter SEZ?

2. What are the benefits enjoyed by the customers of SEZ?

3. What is the role-played by the State Government in setting a SEZ?

4. Do all the units in SEZ show the same growth?

Objectives of the Study

With a view to find out the solution for the problems raised above, the following objectives have been framed:

1. To study the level of customer satisfaction prevailing in MEPZ.

2. To find out the infrastructure facility available in MEPZ.

3. To study the policies, schemes and incentives available for the manufacturers and traders in MEPZ and

4. To find out the tie-ups and collaborations.

Hypotheses

The following hypotheses have been framed for the meaningful interpretation of the primary data.

1. The age of the units does not influence the satisfaction level of the standard design factory.

2. The form of business organization does not influence foreign tie-up and collaboration.

3. The age of the units does not influence the satisfaction level of respondents with the unit after entering the SEZ.

4. The status of the respondents does not influence the satisfaction level of the respondents with regard to standard design factory.

5. The incentives and facilities availed by the respondents do not influence the satisfaction level of respondents with the unit after entering the SEZ.

Research Methodology

The design used for the study is descriptive in nature. This research includes surveys and fact-finding inquiries of different kinds. The major purpose of the research is to describe the state of affairs as it exists at present. The primary data is collected through distributing the structured questionnaires. The questions like "satisfaction level on infrastructure", "allocation of standard design factory" etc. were asked with the five-point 'Likerts' scale. Totally 137 customers situated in MEPZ were contacted and data were collected. In this study, a convenient sampling technique is employed. Depending on the conveniences of the researcher the units were interviewed.

Framework of Analysis

The main aim of the study is to ascertain the factors associated with the level of customer satisfaction of the units in MEPZ. Simple and cross tables were formulated to process the data. To test the associations between the dependent and independent variables, chi-square test was administered. Inferences have been made by comparing the calculated value of 2 with the table value to at 5% and 1% level of significance.

Limitations of the Study

As all the respondents are corporate enterprises, it was difficult to get the appointments with all the enterprises. Similarly, the customers were few because only less number of people showed interest in providing the information. Approximation and generalization had to be made since there is no exact population for study.

Analysis and Interpretation of Data

The results of the analysis of the collected data are presented below:

Table 4 shows that the classification of the customer based on the age. Out of 137 customers, 23 (17%) come under the age group of upto 2 years and 67 (49%) belong to the age group which ranges from 3 to 5 years. The remaining 47 (34%) belong to the last category i.e. above 5 years. It is seen from the table that the number of customers is very high in the age group which ranges between 3 and 5 years as compared to the other groups.

Table 5 shows that the classification of the respondents based on the nature of the form of business organization. Out of 137 respondents, 14 (10%) are sole proprietors, 86 (63%) followed private limited company form of business organization, 23 (17%) of them followed public limited company and 14 (10%) are doing their business under joint venture umbrella. It is seen from the table 2 that the majority of customers are following private limited company form of business organization as compared to the other groups.

Table 6 shows that the classification of the respondents based on the size of the business unit based on capital outlay. Out of 137 respondents, 38 (28%) come under the large-scale unit, 66 (48%) belong to the medium scale unit and the remaining 33 (24%) belong to the small-scale unit. It is seen from the table 3 that the majority of the respondents' size of business unit is medium scale unit as compared to the other two classifications.

Table 7 shows that the types of incentives & facilities provided to the SEZ users. Out of 137 respondents 31 (23%) respondents have enjoy the facility of income tax relaxation, 61 (45%) respondents have enjoy the benefit of the duty free import, 16 (12%) respondents have enjoy the benefit of security while 26 (19%) respondents state that they have full freedom in space allocation. The remaining 3 (1%) respondents said that the specified incentives and facilities are not applicable to them. It is seen from the table 4 that the majority of customers are enjoying the benefit of duty free import.

Hypotheses Testing

[H.sub.o]: The age of the units does not influence the satisfaction level of the standard design factory.

Degrees of freedom: 6 Calculated 2: 12.413 Table Value at 5%: 12.591

Out of 23 respondents who have less than 2 years of age, 10 (43%) respondents are found to be highly satisfied, 7 (30%) respondents are satisfied and 6 (27%) respondents are dissatisfied. Out of 67 respondents who fall in the category of 3-5 years, 10 (15%) respondents are found to be highly satisfied, 32 (48%) respondents are satisfied, 19 (28%) respondents are dissatisfied and 6 (9%) respondents are highly dissatisfied. Out of the 47 respondents who fall in the category of exceeding 5 years, 6 (13%) respondents are highly satisfied, 24 (51%) respondents are satisfied, 13 (27%) respondents are dissatisfied, 4 (9%) respondents are highly dissatisfied. As the calculated 2 value is less than the table value at 5% level of significance, the null hypothesis is accepted. Hence it could be inferred that the age of the units does not influence the satisfaction level of the standard design factory.

[H.sub.o]: The form of business organization does not influence foreign tie-up and collaboration.

Degrees of freedom: 3 Calculated 2: 2.365 Table Value at 5%: 7.814

Out of 14 respondents who are sole proprietors, 9 (64%) respondents have foreign tie-up / collaboration and 5 (36%) respondents have no foreign tie-up / collaboration. Out of 86 respondents who follow private limited company form of business organization, 44 (51%) respondents have foreign tie-up / collaboration and 42 (49%) respondents have no foreign tie-up / collaboration. Out of 23 respondents who follow public limited company form of business organization, 11 (48%) respondents have foreign tie-up / collaboration and 12 (52%) respondents have no foreign tie-up / collaboration. Out of 14 respondents who are doing the business under joint venture 5 (36%) respondents have foreign tie-up / collaboration and 9 (64%) respondents have no foreign tie-up / collaboration. As the calculated 2 value is less than the table value at 5% level of significance, the null hypothesis is accepted. Hence it could be inferred that the form of business organization does not influence foreign tie-up and collaboration.

[H.sub.o]: The age of units does not influence the satisfaction level of respondents with the unit after entering the SEZ.

Degrees of freedom: 4 Calculated 2: 5.505 Table Value at 5%: 9.487

Out of 23 respondents whose units are having less than 2 years of age, 17 (74%) respondents are found to be highly satisfied, 1 (4%) respondents is satisfied and 5 (24%) respondents are dissatisfied. Out of 67 respondents who fall in the category of 3-5 years 47 (70%) respondents are found to be highly satisfied, 10 (15%) respondents are satisfied and 10 (15%) respondents are dissatisfied. Out of 47 respondents who fall in the category of exceeding 5 years, 35 (74%) respondents are found to be highly satisfied, 9 (20%) respondents are satisfied and 3 (6%) respondents are dissatisfied. As the calculated 2 value is less than the table value at 5% level of significance, the null hypothesis is accepted. Hence it could be inferred that the age of the units does not influence the satisfaction level of respondents with the unit after entering the SEZ.

[H.sub.o]: The status of the respondents does not influence the satisfaction level of the respondents with regard to the standard design factory.

Degrees of freedom: 10 Calculated 2: 14.412 Table Value at 5%: 18.307

Out of 22 respondents who have one star status 16 (73%) respondents are found to be highly satisfied, 4 (19%) respondents are satisfied and 2 (8%) respondents are dissatisfied. Out of 17 respondents who have two star status 14 (82%) respondents are found to be highly satisfied, 1 (6%) respondents is satisfied and 2 (12%) respondents are dissatisfied. Out of the 32 respondents who have three star status, 18 (56%) respondents are found to be highly satisfied, 8 (25%) respondents are satisfied and 6 (19%) respondents are dissatisfied. Out of the 23 respondents who have four star status, 17 (74%) respondents are found to be highly satisfied, 3 (13%) respondents are satisfied and 3 (13%) respondents are dissatisfied. Out of the 22 respondents who have five star status, 19 (86%) respondents are highly satisfied and 3 (14%) respondents are satisfied. Out of the 21 respondents who have opted not applicable status, 15 (71%) respondents are highly satisfied, 1 (5%) respondents is satisfied and 5 (24%) respondents are dissatisfied. As the calculated 2 value is less than the table value at 5% level of significance, the null hypothesis is accepted. Hence it could be inferred that the status of respondents does not influence the satisfaction level of the respondents with regard to the standard design factory.

[H.sub.o]: The incentives and facilities availed by the respondents does not influence the satisfaction level of respondents with the unit after entering the SEZ.

Degrees of freedom: 8 Calculated 2: 30.610 Table Value at 5%: 15.507

Out of 26 respondents who have availed Customs Exemption, 23 (88%) respondents are found to be highly satisfied and 3 (12%) respondents are satisfied. Out of 13 respondents who have availed FDI concession 7 (54%) respondents are found to be highly satisfied and 6 (46%) respondents are dissatisfied. Out of the 17 respondents who have availed Banking and Insurance incentives 11 (65%) are found to be highly satisfied, 4 (24%) are satisfied and 2 (11%) respondents are dissatisfied. Out of the 30 respondents who have availed CST exemption 15 (50%) are found to be highly satisfied, 9 (30%) are satisfied and 6 (20%) respondents are dissatisfied. Out of the 51 respondents who have availed service tax exemption, 43 (84%) are highly satisfied and 4 (8%) are satisfied and 4 (8%) respondents are dissatisfied. As the calculated 2 value is greater than the table value at 5% level of significance, the null hypothesis is rejected. Hence it could be inferred that the incentives and facilities availed by the respondents influence the satisfaction level of respondents with the unit after entering the SEZ.

Findings

1. "MEPZ is offering the exporters developed plots and built up factory space for low cost of production" is the opinion of most of customers.

2. The known fact is that MEPZ is a locationally advantageous multi product zone and hence all the products like textiles, leather, electronics, engineering, perfumes, toys and software are manufactured and promoted with well designed factories.

3. The majority of the respondents are satisfied with the facilities and incentives provided by the zone especially duty free imports.

4. The age of the units does not influence the satisfaction level of the standard design factory.

5. The form of business organization does not influence foreign tie-up and collaboration. .

6. The age of the units does not influence the satisfaction level of respondents with the unit after entering the SEZ.

7. The status of the respondents does not influence the satisfaction level of the respondents with regard to the standard design factory.

8. The incentives and facilities availed by the respondents influence the satisfaction level of respondents with the unit after entering the SEZ.

Suggestions

1. The small-scale units can be assisted with more financial support to increase their export performance significantly.

2. The merchant exporter category can be encouraged inside the zone, which can benefit both the trading services and the individual growth.

3. The standard design factory is found to be quite attractive.

4. Concessions in the rental accommodation can be provided for low margin units.

5. The customers must be motivated to have tie-up and collaborations so as to increase the volume of business.

6. Increase in protected water supply inside the SEZ area is one of the felt requirements.

7. The transportation facility within the MEPZ must be given extra care so that it may not be a drawback.

8. Storage facilities, including cold storage should be provided, facilitating safety and waiting for favourable market conditions.

9. The bureaucratic set up and complicated formalities should be reduced, enabling easy formation of units.

10. Bank branches should be set up within the MEPZ so as to enable the customers to avail the bank facilities within the zone area.

Conclusion

The EPZs have come to stay in the Indian economic and business life. The strategy for all concerned should be to adopt a two fold approach. In the light of the experience gained in the existing EPZs, newer zones must be created in all States / Districts taking advantage of the special natural facilities available. Secondly, working of the existing EPZs should be thoroughly investigated and bottlenecks found and removed. Improvement and corrections must be done on a war footing. If the players and regulators co-ordinate well with each other, it will be a win win situation for all.

References

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James R. Stepanek (1982), "China's SEZs", The China Business Review 9:2 (March-April 1982), p.38. http://sezindia.nic.in http://sezindia.nic.in/sez-rues2006.pdf

ILO (1989), Export Processing Zones in Developing Countries--Results of a New Survey Geneva, 1989.

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Venugopal Dhoot (2007), ASSOCHAM Guidelines to improve SEZs, India Real Estate forum 7th March. Wall, David (1991), Special Economic Zones in Chinathe Administrative and Regulatory Framework, Research School of Pacific Studies, The Australian National University.

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www.mepz.com

R. Ganapathi * and S. Anbu Malar **

* S. N. R. Sons College (Autonomous), Coimbatore, Tamilnadu, India

** Sri Krishna Arts & Science College, Coimbatore, Tamilnadu, India

* E-mail: [email protected], ** E-mail: [email protected]

Table 1: Types of Industries in Mepz

Sl. Sector Mepz - Sez
No.

1. Engineering industry 28
2. Electronics and Software 12
3. Chemical, Plastic and Allied Industry 20
4. Leather and Sports Goods 8
5. Food, Agriculture and Forest Products 1
6. Garment and Textiles 21
7. Yarn 0
8. Minerals and Ores 0
9. Granites 1
10. Gems and Jewellery 8
11. Miscellaneous 11
12. Trading and Service Units 6

 TOTAL 116

Source: Madras Export Processing Zone

Table 2: Turnover in Mepz (Rs. In Crores)

Sl. Financial Year Mepz-Imports Mepz-Exports
No. (Rs. In Crores) (Rs. In Crore)

1. 2004-2005 689 1376

2. 2005-2006 993 1860

3. 2006-2007 1221 2383

4. 2007-2008 2532 3042

5. 2008-2009 119 148
 (17.04.2008)

Source: Madras Export Processing Zone

Table 3: Status of Units-Mepz-Sez since
Inception

Sl. No. Status Of Number Of
 The Units Mepz-Sez Units

1. Units in Production 116
2. Units being Set up 27

Source: Madras Export Processing Zone

Table 4: Age of the Units

Age Groups Number of Percentage
 Respondents

Up to 2 years 23 17
3 to 5 years 67 49
Above 5 years 47 34

TOTAL 137 100

Source: Primary Data

Table 5: Form of Business Organization of
Respondents

Form Of Business Number Of Percentage
Organization Respondents

Sole proprietor 14 10
Private Limited 86 63
Public Limited 23 17
Joint Venture 14 10

TOTAL 137 100

Source: Primary Data

Table 6: Size of Business Unit of the Respondents

Size of Number of Percentage
Business Unit Respondents

Large Scale 38 28
Medium Scale 66 48
Small Scale 33 24

TOTAL 137 100

Source: Primary Data

Table 7: Main Incentives and Facilities Provided
to Sez Users

Type of Incentives Number Percentage
and Facilities of Respondents

Income Tax Relaxation 31 23
Duty Free Import 61 45
Security 16 12
Full Freedom in Space 26 19
Allocation
Not Applicable 3 1

TOTAL 137 100

Source: Primary Data

Table 8: Relationship between the Age of the Units and the
Satisfaction Level of Sdf

Age of
the Units Satisfaction Level of Sdf

 Highly Satisfied Dissatisfied
 Satisfied

Up to 2 years 10 (43%) 7 (30%) 6 (27%)
3-5 years 10 (15%) 32 (48%) 19 (28%)

Above 5 years 6 (13%) 24 (51%) 13 (27%)

TOTAL 26 63 38

Age of Satisfaction
the Units Level of Sdf Total

 Highly
 Dissatisfied

Up to 2 years 0 (0%) 23
3-5 years 6 (9%) 67

Above 5 years 4 (9%) 47

TOTAL 10 137

Source: Primary Data

Table 9: Relationship between the Form of
Business Organization and Foreign

Form of Foreign Tie-Up/ Total
Business Collaboration
Organization Yes No

Sole proprietor 9 (64%) 5 (36%) 14
Private Limited 44 (51%) 42 (49%) 86
Public Limited 11 (48%) 12 (52%) 23
Joint Venture 5 (36%) 9 (64%) 14

TOTAL 69 68 137

Source: Primary Data

Table 10: Relationship between the Age of the Units and Level of
Satisfaction of Respondents

Age of Level of Satisfaction & Respondent Total
the Units Highly Satisfied Satisfied Dissatisfied

Up to 2 years 17 (74%) 1 (4%) 5 (24%) 23
3-5 years 47 (70%) 10 (15%) 10 (15%) 67
Above 5 years 35 (74%) 9 (20%) 3 (6%) 47

TOTAL 99 20 18 137

Source: Primary Data

Table 11: Relationship between the Status and the Level of
Satisfaction of Respondents

Age of Lavel of Satisfcation & Respondent Total
the Units Highly Satisfied Satisfied Dissatisfied

One star 16 (73%) 4 (19%) 2 (8%) 22
Two star 14 (82%) 1 (6%) 2 (12%) 17
Three star 18 (56%) 8 (25%) 6 (19%) 32
Four star 17 (74%) 3 (13%) 3 (13%) 23
Not Applicable 15 (71%) 1 (5%) 5 (24%) 21

TOTAL 99 20 18 137

Source: Primary Data

Table 12: Relationship between the Incentives and Facilites
Availed and the Level of Satisfaction of Respondents

Types of Lavel of Satisfaction & Respondent Total
Incentives & Highly
Facilities Availed Satisfied Satisfied Dissatisfied

Exemption in Customs 23 (88%) 3 (12%) 0 (0%) 2
FDI 7 (54%) 0 (0%) 6 (46%) 13
Banking & Insurance 11 (65%) 4 (24%) 2 (11%) 17
CST Exemption 15 (50%) 9 (30%) 6 (20%) 30
Service Tax Exemption 43 (84%) 4 (8%) 4 (8%) 51

TOTAL 99 20 18 137

Source: Primary Data