DLF to restart Kolkata SEZ project

NEW DELHI: The government today gave the nod for the country's largest real estate developer, DLF, to revive its plan for a special economic zone (SEZ) in Kolkata.

"The Board of Approval has allowed re-notification of DLF's SEZ in Kolkata," Commerce Ministry Additional Secretary D K Mittal told reporters here after a meeting of the Board of Approval, the nodal body for SEZ-related matters.

The Kolkata SEZ was one of DLF's four SEZ projects notified in June, 2008.

However, the tax-free enclave in Kolkata, which was to be developed in a small area of 10.48 hectares, was de-notified along with the other three SEZs in February, 2009, on account of demand shrinkage for commercial space.

With the improved sentiment in the real estate sector, DLF had approached the Commerce Ministry for reviving this IT/ITeS tax-free zone. In its application for restarting the project, the company said demand for IT/ITES leasing space is showing signs of improvement.

However, DLF's three other projects in Gujarat, Haryana and Orissa remain de-notified.

In all, about 12 developers had pulled out their SEZ projects due to a slowdown in the commercial space segment last year.