 "Conversion of failed SEZs")
The trigger is the Centre's move to revive SEZs with adjustments in minimum alternate tax and dividend distribution tax, thereby attracting investment.
The previous government in its industrial policy announced in January 2013 and the subsequent amendment to the Maharashtra Industrial Development Act, 1961, had proposed conversion of SEZs, which could not take off, into IIAs.
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It was made mandatory for the promoter to use 60 per cent of the land for industrial use, 30 per cent for residential and 10 per cent for commercial purposes.
The new policy envisaged more land available for industry. While SEZs had 50 per cent minimum land requirement for industry earlier, the policy had proposed it at 60 per cent for IIAs. However, it was attacked by various political parties, terming it 'pro-builders'.
"The IIA policy has failed miserably as there was just one proposal received at state-run Maharashtra Industrial Development Corporation from a promoter of SEZ for its conversion into an IIA in Pune district. However, the project did not take off. Other SEZ promoters adopted a wait and watch policy in the run-up to the Lok Sabha and state Assembly polls. Now, with the central government's plan to give a push for revival of SEZs, the earlier government's policy has become infructuous and will be scrapped," a senior industrial department official told Business Standard.
He said a formal decision in this regard would be taken soon.
New industries minister Prakash Mehta has said the government will provide all necessary help for revival of SEZs. According to his department's data for 2012-13, there were 124 approved, 64 notified and only 24 implemented SEZ projects in the state.
The operational SEZs had created about 850,000 jobs and accounted for investment of Rs 10,836 crore.