18 SEZ developers across States are delaying projects
September, 10th 2012
As many as 18 developers, including Tata Consultancy and G P Realtors, have sought more time from the Government for implementing their projects.
The Board of Approval, a 19-member inter-ministerial body that deals with special economic zone (SEZ)-related matters, will consider these applications on September 14.
The Board would also take up applications of two developers, including Reliance Haryana SEZ Ltd (RHSL), which are seeking relaxation in land contiguity norms.
RHSL, which has proposed to set a multi-services tax-free zone in Gurgaon, has said in its application that the Haryana Urban Development Authority wants to construct a road from Dwarka to Kherki Daula.
The road is passing through...the non-processing area of the SEZ. The proposed road would break the contiguity of the non-processing area, the agenda paper of the meeting said.
The developer has no objection to the road passing through the SEZ, it said.
The Board would also consider a proposal for de-notification of a zone. Bengal Shapoorji Infrastructure Development Ltd has sought denotification of its IT zone in West Bengal.
Further, the developers which have sought one to two more years for implementation of their projects have cited different reasons like economic slowdown and imposition of MAT, an official said.
While Tata Consultancy has sought two more years to implement its project, G P Realtors has not mentioned the numbers of years but seeks more time for its tax free zone.
Tata Consultancy and G P Realtors want to set up IT SEZs in West Bengal and Haryana respectively.
According to an industry experts, uncertainty over the tax exemptions for new SEZs has also led to declining interest in the duty-free zones. Investors are apprehensive about the new draft Direct Taxes Code (DTC).
According to the revised DTC draft, which will replace the Income Tax Act of 1961, tax exemptions for SEZs will be confined to already existing units.
The Board will also take up one applications for setting up new zones.
Exports from SEZs stood at Rs 3.65 lakh crore in 2011-12. With investments of Rs 2.02 crore, these zones provide employment to over 8.45 lakh.