BoA may resume SEZ clearances next month

NEW DELHI: The frustration of a number of late entrants joining the SEZ bandwagon is expected to come to an end when the board of approvals (BoA) for SEZs meets during the middle of next month. Projects in the initial stages would find progress in their multi-stage clearance once the BoA meets around May 15, officials said. The BoA has not been meeting for quite some time since the eGoM on SEZs imposed a freeze on all clearances.

Only 63 SEZs have been notified so far while nearly 230 are waiting in the wings after formal clearances. These projects will get final clearance only after the BoA resumes processing of approvals.

While real estate companies keen to develop mega SEZs would find the going tough due to the cap of 5,000 hectares on land acquisition, smaller companies which applied for SEZ projects at a later stage would stand to benefit due to lifting of the freeze on approvals.

“In respect of pending applications for SEZs, these may be processed for in-principle, formal approval, notifications subject to the condition that the state governments would not undertake any compulsory acquisition of land for such SEZs,” said a statement from the commerce & industry ministry. Earlier, it was expected that the BoA would meet this month but resumption of clearance would begin next month in view of recent developments, officials said.

Developers first obtain provisional clearances and get formal clearance only after completing land acquisition. Finally, SEZs are notified only when all formalities are completed by developers. Following a decision by the eGoM, the commerce department would now verify adherence to land acquisition norms before providing the green signal for final clearance.