SEZ craze slows down, new nods next year
Fresh applications for setting up special economic zones are likely to be taken up only in the new year.
By Amiti Sen, TNN |
NEW DELHI: Fresh applications for setting up special economic zones (SEZs) are now likely to be taken up only in the new year. Since the board of approval for SEZs has already approved over 200 proposals of which only a fraction have been notified and the number of fresh applications are low, the commerce ministry has decided to go slow.
Speaking to ET, official sources said there were about 70 applications received by the BoA so far. Since the cap on the total number of SEZs to be allowed has been removed, not many are expected to be made in the remaining days of 2006.
Speaking to ET, official sources said there were about 70 applications received by the BoA so far. Since the cap on the total number of SEZs to be allowed has been removed, not many are expected to be made in the remaining days of 2006.
| IN NO HURRY Since the board of approval for SEZs has approved over 200 proposals and the number of fresh applications are low, the commerce ministry has decided to go slow Since there was a cap of 150 on new approvals, there was a mad rush from applicants who feared that they might miss the bus The requirement on applicants of getting a certificate from respective state governments specifying that the land to be used for developing SEZs is not agricultural land has also slowed the flow of applications The board of approval for SEZs has received 70 new applications so far. The board is likely to meet next year when a substantial number of proposals on the table |
“Since we have started the process of clearing proposals statewise, it makes sense to hold fresh meetings when we have a substantial number of proposals on the table. It is unlikely that the BoA will meet this year,” an official said.
Another reason for not hurrying with the fresh proposals is the fact that of the total number of SEZs approved so far, less than 30 have been notified. The general feeling is that some time should be given for further notifications before additional approvals are given.
Since the government had initially imposed a cap of 150, there was a mad rush from applicants who feared that they might miss the bus. But when the empowered-group of ministers on SEZs lifted the cap, the flow slowed down to a trickle.
Another requirement which could play a role in slowing down applications is the requirement imposed by the Centre on applicants of getting a certificate from respective state governments specifying that the land to be used for developing SEZs is not agricultural land. This follows a big debate on grabbing of productive agricultural land by special economic zone developers.
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