10 developers want to pull out of SEZs; 8 seek more time

10 developers want to pull out of SEZs; 8 seek more time
New Delhi
The Economic Times Mint

The economic slowdown and the problems in acquiring land are making developers re-think their SEZ plans and 10 of them have approached the government for withdrawal of approvals for setting up the tax-free enclaves.

Besides, at least eight SEZs, have sought extension, citing different reasons like problems in acquiring land.

The applications for seeking withdrawal of approvals and extension of validity of clearances will be considered by the Board of Approvals in the Commerce Ministry in its meeting on October five.

Promoters which want to pull out of these projects in the wake of the slow down for commercial space include Gremach Infrastructure Equipments for its proposed project at Kolhapur, ETL Infrastructure Services' project at Kancheepuram in Tamil Nadu and Maharashtra Industrial Development Corporation for a bio-technology SEZ at Jalna in Maharashtra.

Those seeking extension of time include Mumbai SEZ, promoted by Reliance Industries' Chairman Mukesh Ambani and his close aide Anand Jain, Gitanjali Gems, Jubliant Infrastructure and L&T Hitech City, an official said.

The BoA has so far approved one-year extension to 81 developers.

After the economy felt the impact of the global recession from September 2008 the demand for commercial space saw a big erosion.