Slowdown blues for SEZs; big promoters seek time extension

NEW DELHI: With slowdown in economic activities, the Commerce Ministry has been flooded with requests from SEZ promoters seeking extension of time for developing the tax-free industrial and services enclaves.

Scores of leading SEZ promoters, including Infosys Technologies, CMC Ltd, Hindalco Industries, NIIT Technologies, HCL Technologies, Orient Craft Infrastructure, L&T Phoenix Infoparks and K Raheja Corp, have sought more time from the Board of Approval (BoA), which is meeting here on June 2.

The BoA, headed by Commerce Secretary G K Pillai, 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.