22 more developers seek govt nod to cancel SEZs
The 22 developers include Tamilnadu Industrial Development Corporation and Sunwise Properties
May 07, 2015
Source : The Economic Times (ETRealty.com)


NEW DELHI: A few months after government cancelled 56 SEZ projects, 22 more developers have approached the government to surrender their tax free zones.
The 22 developers include Tamilnadu Industrial Development Corporation and Sunwise Properties.
The Board of Approval (BoA) chaired by Commerce Secretary Rajeev Kher would take a decision on these applications in its meeting on May 19.
Of 22 SEZs, 19 are from IT/ITeS sector. While other sectors include multi-product, engineering, hardware and software.
"In these cases, a formal approval has been granted by the DoC (Department of Commerce). However, since there is no significant progress made by the Developer/co-developer, the concerned DC (development commissioner) has proposed for cancellation of formal approval granted to the developer," the agenda note of the BoA meeting said.
In February, the government had cancelled 56 tax free enclaves.
Tamilnadu Industrial Development Corporation had proposed a multi-product special economic zone (SEZ). The formal approval was granted in 2011.
"Developer was given sufficient opportunities to apply for extension, if they are serious in implementing the project. The developer has expressed their unwillingness and requested for cancellation of formal approval. DC has recommended for cancellation of formal approval," it said.
Similarly, Sunwise Properties Pvt Ltd has proposed an IT/ITeS zone in Gurgaon. It was notified in 2009.
"...Approval Committee decided to forward the case to DoC with the request to take necessary action for cancellation of formal LoA/denotification of SEZ," it said.
Other developers who have sought government's approval to cancel there zones include Raaga Mayuri Builders, Township Developers India, Progressive Buildestate, GHI Finlease and Investment, Mikado Realtors, Uppal Housing, Sarv-Mangal Real Tech and Mohan Investment and Properties.
Further, 27 developers including Gulf Oil Corporation, Vedanta Aluminium Ltd, Indiabulls Industrial Infrastructure and Navi Mumbai SEZ have asked for more time o implement their projects.
The BoA would also consider the proposal of Infosys Ltd to set up a new IT/ITeS zone in Karnataka.
SEZs, which were emerged as a major export hub in the country, started loosing sheen after imposition of minimum alternate tax (MAT) and dividend distribution tax (DDT).
Industry has sought a reduction or removal of these taxes boost investments.
Exports from these zones increased from Rs 22,840 crore in 2005-06 to Rs 4.94 lakh crore in 2013-14.
The commerce ministry is struggling to increase exports as the country's shipments in the last three years have been hovering around USD 300 billion.

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