Firms put SEZ plans on backburner

Around 41 proposals will be considered for withdrawal or extension of formal approval by the Board of Approval (BoA) for Special Economic Zones (SEZ).

The reasons cited include economic slowdown, poor demand for space, uncertainty regarding continuity of fiscal concessions under the Direct Taxes Code (DTC) regime, and land dispute.

Formal approval is given to proposals meeting the minimum land requirements, but it can be extended or withdrawn. A notified SEZ can be partially de-notified subject to minimum area rules. But the de-notified portion will not get tax benefits. SEZs can also be fully denotified.

Larsen & Toubro wants withdrawal of formal approval granted to its proposed IT/ITeS SEZ in Mumbai.

Gulf Oil Corp has sought withdrawal of formal approval to its IT/ITeS SEZ in Bangalore, citing poor demand for space. Among those seeking extension of formal approval are Reliance Haryana SEZ, Navi Mumbai SEZ, Unitech, Uttam Galva, TCS, Indiabulls and Cognizant.