3 developers seek to walk out on SEZs
The Economic Times, November 30, 2009, Page 9
Amiti Sen NEW DELHI
THREE large notified special economic zones or SEZs have requested the government to allow them to abandon their projects, suggesting that the slowdown has taken a toll on the investments in these model enclaves envisaged to give a push to industrial growth.
The government does not yet see this as a worrying sign or set back in attempts to created worldclass industrial infrastructure.
Essar’s engineering SEZ in Hazira, Royal Palms IT/ITeS SEZ in Mumbai and SNP Infrastructure’s IT/ITeS SEZ in Tamil Nadu have expressed their inability to go ahead with their projects, citing poor market conditions.
The requests will be considered at the December 15 meeting of the board of approval, government body that approves proposals for setting up of the enclaves that are eligible for substantial tax concessions.
All three have cited `global slowdown a nd market conditions’’ as reasons for their wish to exit the projects, a commerce department official, who did not wish to be named, told ET.
The number of notified projects, projects that have the final go-ahead to start development and setting up of units therein, which developers are seeking to withdraw has now gone up to twelve.
Earlier, developers including real estate major DLF and Rahejas had put in requests for de-notification of some of their SEZs.
“It is true that there are some developers who do not find it viable to carry on with their projects because of the economic slowdown. But, at the same time, the government is also receiving requests for setting up new projects and exports from the zones is on the rise,” the official added.
The board of approval has received eight new requests for setting up SEZs which includes projects from L&T and Sterlite Industries and three requests for conversion of in-principal approval to formal approvals, which happen when developers have managed to acquire land.
A number of developers also want to hold on to their project approvals and wait for the economy to improve before making investments.
Requests from as many as eleven SEZ developers, including Korean steel giant Posco, IndiaBulls infrastructure and Reliance Haryana for grant of a third extension to the approval given to their projects in Orissa, Raigarh and Gurgaon, respectively, will also be considered by the board of approval.
A total of 16 developers have asked for the first extension of formal approvals given to their projects.
The validity of an approval given to a SEZ project is for one year and the SEZ rules provide for grant of two extensions of twelve months each. “While granting the first extension will not be a problem, the board has to examine under what circumstances projects can be given a third extension,” the official said.
The Economic Times, November 30, 2009, Page 9
Amiti Sen NEW DELHI
THREE large notified special economic zones or SEZs have requested the government to allow them to abandon their projects, suggesting that the slowdown has taken a toll on the investments in these model enclaves envisaged to give a push to industrial growth.
The government does not yet see this as a worrying sign or set back in attempts to created worldclass industrial infrastructure.
Essar’s engineering SEZ in Hazira, Royal Palms IT/ITeS SEZ in Mumbai and SNP Infrastructure’s IT/ITeS SEZ in Tamil Nadu have expressed their inability to go ahead with their projects, citing poor market conditions.
The requests will be considered at the December 15 meeting of the board of approval, government body that approves proposals for setting up of the enclaves that are eligible for substantial tax concessions.
All three have cited `global slowdown a nd market conditions’’ as reasons for their wish to exit the projects, a commerce department official, who did not wish to be named, told ET.
The number of notified projects, projects that have the final go-ahead to start development and setting up of units therein, which developers are seeking to withdraw has now gone up to twelve.
Earlier, developers including real estate major DLF and Rahejas had put in requests for de-notification of some of their SEZs.
“It is true that there are some developers who do not find it viable to carry on with their projects because of the economic slowdown. But, at the same time, the government is also receiving requests for setting up new projects and exports from the zones is on the rise,” the official added.
The board of approval has received eight new requests for setting up SEZs which includes projects from L&T and Sterlite Industries and three requests for conversion of in-principal approval to formal approvals, which happen when developers have managed to acquire land.
A number of developers also want to hold on to their project approvals and wait for the economy to improve before making investments.
Requests from as many as eleven SEZ developers, including Korean steel giant Posco, IndiaBulls infrastructure and Reliance Haryana for grant of a third extension to the approval given to their projects in Orissa, Raigarh and Gurgaon, respectively, will also be considered by the board of approval.
A total of 16 developers have asked for the first extension of formal approvals given to their projects.
The validity of an approval given to a SEZ project is for one year and the SEZ rules provide for grant of two extensions of twelve months each. “While granting the first extension will not be a problem, the board has to examine under what circumstances projects can be given a third extension,” the official said.
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