DELHI: As many as 29 special economic zone developers including Tata Consultancy ServicesBSE -0.12 %, Parsvnath Infra and Navi Mumbai SEZ Pvt Ltd have sought more time from the government for implementing their projects. The inter-ministerial Board of Approval (BoA) chaired by Commerce Secretary S R Rao will consider these requests at its meeting on November 8.
Posco-India Pvt Ltd, Unitech Infracon and Lodha Dwellers have also requested additional time for project implementation from the BoA, according to the agenda note of the meeting.
The developers have cited reasons like global meltdown and fluctuating market conditions for delay in completion of projects.
TCS, which is setting up IT/ITES zone in Kolkata has requested for further extension due to problems related to construction. Unitech Infracon Ltd which is setting up IT/ITES zone in Greater Noida has "requested for further extension as work started in 2008 and the pace was slow due to global melt down and fluctuating market conditions", it added.
The developers have asked for one more year to execute their SEZs. The validity period of the approvals for most of them has either expired or is on the verge of expiry.
The validity period for Lodha Dwellers and Unitech Infracon expired on May 2 and May 22 respectively. The validity period for Navi Mumbai SEZ will end on November 21.
The board will also take up two applications for setting up new zones. Under the SEZ Act, the units get 100 per cent tax exemption on profits earned for the first five years, 50 per cent exemption for the next five years and another 50 per cent exemption on re-invested profits in the following five years.
SEZs, which were once major vehicles for investment and export promotion, started losing sheen after the global meltdown and imposition of minimum alternate tax. As many as 58 SEZ developers had surrendered projects due to various reasons till July 31. Exports from SEZs grew by about 31 per cent to Rs 4.76 lakh crore during 2012-13.