18 SEZ developers seek more time to execute projects
As many as 18 developers, including Tata Consultancy and G P Realtors, have sought more time from the government for implementing their projects.
The Board of Approval, a 19-member inter-ministerial body that deals with special economic zone (SEZ) related matters will consider these applications on September 14.
No Related Stories Found
The Board would also take up applications of two developers including Reliance Haryana SEZ Ltd (RHSL), which are seeking relaxation in land contiguity norms.
RHSL, which has proposed to set a multi services tax free zone in Gurgaon, has said in its application that Haryana Urban Development Authority wants to construct a road from Dwarka to Kherki Daula.
"The road is passing through...The non-processing area of the SEZ. The proposed road would break the contiguity of the non-processing area," the agenda paper of the meeting said.
The developer has no objection to road passing through the SEZ, it said.
BoA would also consider a proposal for de-notification of a zone. Bengal Shapoorji Infrastructure Development Ltd has sought denotification of its IT zone in West Bengal.
Further, the developers which have sought one to two more years for implementation of their projects have different cited reasons like economic slowdown and imposition of MAT, an official said.
While Tata Consultancy has sought two more years to implement its project, G P Realtors has not mentioned about the numbers of years but seeks more time for its tax free zone.
Tata Consultancy and G P Realtors wants to set up IT SEZ in West Bengal and Haryana respectively.
According to an industry experts, uncertainty over the tax exemptions for new SEZs has also led to declining interest in the duty-free zones. Investors are apprehensive about the new draft Direct Taxes Code (DTC).
According to the revised DTC draft, which will replace the Income Tax Act of 1961, tax exemptions for SEZs will be confined to already existing units.
The board will also take up one applications for setting up new zones.
However, to boost investors confidence in these zones, the government is planning to revive the SEZ rules.
SEZs have been losing appeal among investors since 2008 because of tough global economic conditions and uncertainty over continuation of the tax incentives to these enclaves.
Exports from SEZs stood at Rs 3.65 lakh crore in 2011-12. With investment of Rs 2.02 crore, these zones provide employment to over 8.45 lakh.