Srei wants to convert SEZ into industrial park

BANGALORE: Srei Infrastructure Development is exploring the possibility of converting its 500-acre special economic zone near Kharagpur in West Bengal into an industrial park, due to muted market conditions and lack of clarity over the government's proposed Direct Tax Code.

"The Guptamoni SEZ may now become an industrial park, since we have to see it from the tax perspective. Separately, we also need to look at the client mix now. We are going slow on the SEZ, and it has been delayed by a year," said Hemant Kanoria, managing director, Srei.

The Kolkata-based company, which is developing the auto components-focused SEZ under a joint venture with the West Bengal Industrial Infrastructure Development Corp, plans to discuss the proposed changes with the West Bengal government.

In 2009, it was granted an extension till June last year, to acquire land for the project.

Kanoria stressed that the land acquisition process relating to the project will continue as scheduled, and the entire land purchase process is expected to close by the end of 2011.

"We expect to start construction in the next three or four months. So far, we have purchased 130 acre and expect to add a further 370 acre by the end of this year," Kanoria said.

The project had got a nod from the SEZ Board of Approval in 2006, and was scheduled to be completed by 2008.