Uttam Galva Steels Ltd, the country’s second largest galvanized steel manufacturer, has approached the Government to surrender its two special economic zones (SEZs) in Maharashtra.
The company’s request will be considered by the 19-member Board of Approval chaired by Commerce Secretary S.R. Rao, in its meeting on August 30.
The developer had planned two sector specific SEZs for IT/ITES in Raigad, Maharashtra.
The zones were notified by the government on March 12, 2009 and June 19, 2009.
For both the denotifications, the developer has cited the reason of “general recession in biotechnology sector and local disadvantage,” an official in the commerce ministry told PTI.
SEZs, which were once looked upon as major vehicles for investment and export promotion, started losing sheen after the global meltdown and imposition of minimum alternate tax (MAT) and dividend distribution tax.
However, the Government has recently announced an incentive package including relaxation in minimum land requirement to revive interest of investors in the SEZs.
The minimum land area requirement for setting up of tax free zones was reduced to half and for IT and ITeS SEZs, the government has ended the ceiling. As part of exit policy for the SEZs, it has been decided to allow transfer of ownership and sale of SEZs units.
As many as 58 special economic zone developers have surrendered their projects due to various reasons, including global economic slowdown and changed fiscal incentive regime till 31 July.
The Government has formally approved 576 such zones out of which 173 have commenced exports.