Parsvnath SEZ, Unitech Realty Projects, Uttam Galva Steelsa and others seeks more time to implement projects

NEW DELHI: Reflecting lack of enthusiasm for the special economic zones, as many as 53 developers including Parsvnath SEZ, Unitech Realty Projects and Uttam Galva Steels have sought more time from the government for implementing their projects.

Reliance Haryana SEZ, NIIT Technologies, Navi Mumbai SEZ, Indiabulls Industrial Infrastructure and Mahindra and Mahindra Ltd have also requested for additional time from the Board of Approval (BoA), headed by Commerce Secretary Rahul Khullar, an official said.

BoA, a 19-member inter-ministerial body that deals with special economic zones (SEZs) related matters, is scheduled to meet on May 31.

Another 6 promoters have approached the Commerce Ministry for surrendering their projects.

The developers, who have requested for denotification, have cited reasons like global economic slowdown, problems related to land acquisition and imposition of minimum alternative tax (MAT) on the developers and units.

The developers who have approached for denotification of their tax free enclaves include Maharashtra Industrial Development Corporation for its sector specific SEZ and Satyam Computer Services for its IT/ITeS zone.

According to an industry expert, uncertainty over tax exemptions to new SEZs has also led to declining interest in the tax free enclaves. Investors are apprehensive about the new draft Direct Taxes Code (DTC).