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Many developers have applied to the Government asking to drop their plans to build Special Economic Zones.
They say the economic slowdown, lack of demand for SEZ space, imposition of 18.5 per cent Minimum Alternate Tax on SEZ developers and units as well as the Direct Taxes Code proposing to withdraw profit-linked deductions for SEZs have made their projects unviable.
Their applications will be taken up by the Board of Approval (BoA) for SEZs on July 22, according to the agenda note for the BoA meeting.
Parsvanath has sought the BoA's nod to withdraw the in-principle approval given for its sector specific SEZ in Agra (100 hectare-leather SEZ), Jaipur (45 hectare-gems and jewellery SEZ), Kundli in Haryana (100 hectare-food processing SEZ), Moradabad in Uttar Pradesh (100 hectare-handicrafts SEZ), Pune (100 hectare-automotive and auto component SEZ) and Kancheepuram in Tamil Nadu (1000 hectare multi-product SEZ).
In-principle approval is given to feasible projects requiring acquisition of land later.
Developers who have sought withdrawal of formal approval for their SEZ projects include: Juventus Builders and Developers – 10.12 hectare IT/ITES SEZ in Raigad (Maharashtra); Sundari Theme Ventures – 10.12 hectare biotech SEZ at Kolthur in Andhra Pradesh; and Alok Infrastructure – 73.48 hectare textile SEZ near Silvasa in Dadra and Nagar Haveli. Formal approval is for those projects with land.
Those who have applied for de-notification of their SEZs include: Oval Developers – 11.78 hectares Electronic Hardware and Software SEZ at District-24 Parganas (South) in West Bengal; Airmid Developers – 11.7 hectare-IT/ITES SEZ at Gurgaon in Haryana; Yashprabha Enterprises – 10.36 hectare biotech SEZ at Ratnagiri (Maharashtra); Karnataka Biotechnology and Information Technology Services – 37.5 hectare biotech SEZ in Bangalore; and NG Realty 217 hectare-engineering SEZ in Ahmedabad.
De-notification of an SEZ is permitted subject to the condition that the developer returns to the Government the tax benefits availed for the SEZ.
Besides, around 45 developers, including Smart City (Kochi) Infrastructure Pvt Ltd, Foxconn India, Electronic Corporation of Tamil Nadu (ELCOT), Navi Mumbai SEZ Pvt Ltd, Raheja, Deccan Infrastructure and Land Holdings and GP Realtors have sought more time to complete their projects.
Amidst all this, two developers have applied for setting up new SEZs.
They include 1,380 hectare multi-product SEZ in Bharuch (Gujarat) by Anique Infrastructure and 10.2 hectare electronics hardware and software SEZ at Medak (Andhra Pradesh) by Radiant Corporation.
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