Slowdown blues for SEZs
With slowdown in economic activities, scores of leading SEZ promoters, including Infosys, Hindalco and NIIT, have been given extension by the Commerce Ministry for developing the tax-free enclaves. However, the Board of Approval headed by Commerce Secretary GK Pillai during its meet on June 2 will consider proposals for setting up 17 new special economic zones (SEZs), including those of Larsen and Toubro, Emaar MGF and Gulf Oil Corporation.
The BoA, which will meet soon after taking over of the UPA government for the second time, also takes up request from realty major DLF for de-notification of its IT-ITeS SEZs in Gujarat, Haryana, West Bengal and Orissa. “The developer (DLF) has requested for de-notification ... Due to slowdown in the economy and liquidity crunch in the overall industry,” the agenda document of the meeting said.
The BoA would consider the proposal of Larsen and Toubro for setting IT SEZ in Mumbai, while Gulf Oil Corporation has moved application for a tax free zone in Bangalore. Other proposals for new SEZs include Emaar MGF’s IT related SEZ in Kerala. PTI