Reflecting lack of enthusiasm for the special economic zones, over 40 developers including Parsvnath SEZ Ltd and Ranbaxy Laboratories have sought more time from the government for implementing their projects.

Reliance Haryana SEZ Ltd has also requested for additional time from the Board of Approval (BoA), headed by the Commerce Secretary, Mr Rahul Khullar, the BoA agenda said.

Maharashtra Industrial Development Corporation has approached the BoA for surrendering its sector specific tax free enclave at Solapur, the agenda said.

Gujarat Hydrocarbons and Power SEZ Ltd which was planning to set up a sector specific SEZ in Gujarat sought “...withdrawal of formal approval due to uncertainty in the international market and in the legal framework governing SEZs”.

According to an industry expert, uncertainty over tax exemptions to new SEZs has also led to declining interest in the tax-free enclaves. Investors are very 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 the existing units.

comment COMMENT NOW