Karnataka opposes changes in SEZ policy through DTC

BANGALORE: Karnataka today urged the Centre not to alter the SEZ policy through the proposed Direct Tax Code as it would create 'uncertainty' and force many investors to put their investments on hold.

Chief Minister B S Yeddyurappa in a letter to Prime Minister Manmohan Singh said "this uncertainty needs to be removed straight away by issuing instructions that SEZ scheme shall not be altered by Direct Tax Code".

By proposing the changes, the country would be sending wrong signals to international and domestic investors, he pointed out. "In case this change is brought about, Karnataka would have no alterantive but to withdraw its SEZ policy".

In Karnataka 52 SEZs have been formally approved, 10 SEZs have been given in-principle approval and 29 of them have been notified. Seventeen SEZs have started operating in the state, Yeddyurappa said.