TCS, Dr Reddy’s among 24 SEZ developers seeking more time, 3 others to surrender
17 Jan 2014
As many as 24 special economic zone (SEZ) developers, including Tata Consultancy Services (TCS) and Dr Reddy's Lab, have sought more time to execute their projects while three others have sought to surrender their projects.
Three developers, including Haldia Free Trade Warehousing, have sought to surrender their projects.
The inter-ministerial Board of Approval (BoA), chaired by commerce secretary S R Rao, will consider these requests at its meeting tomorrow.
Haldia Free Trade Warehousing which had proposed to set up a zone in West Bengal has cited the policy of the state government as reason for scrapping the project.
The BoA said the developer "has requested for withdrawal of formal approval as they have decided to develop outside the scope of SEZ in view of the present policy of the state government."
GP Realtors and Ansal IT City and Parks have also sought more time to implement their projects.
As most of the players have invested some amount in developing the SEZs, Development Commissioners of the respective zones have asked the BoA to give another year for their projects.
Tata Consultancy Services has already invested Rs416.63 crore on the IT SEZ project, which is coming up at Andhra Pradesh.
Dr Reddy's Laboratories, which is also setting up a pharma zone in Andhra Pradesh, has already invested Rs150 crore in infrastructure development.
Other pharmaceutical firms such as Zydus Technologies and Cadila Healthcare have also sought more time to commence production at their SEZ units as they are yet to obtain the necessary regulatory approvals.
The BoA would also take up Wipro's application seeking an industrial licence for manufacture of defence products in Bangalore.
Reliance Industries Ltd, developer of Jamnagar SEZ, has sought permission to erect 50 pillars in SEZ area to provide connectivity of their upcoming C2 Complex from DTA Refinery and construct two under passes below the existing rail line and SEZ road.
SEZs, which have been touted as major export hubs, contribute about 30 per cent of the country's total overseas shipments. However, imposition of minimum alternate tax and dividend distribution tax had impacted the growth of these zones.
Exports from SEZs during April-June period of the current fiscal declined to Rs1,13,000 crore from Rs4,05,000 crore during the same period last year.
