56 SEZ developers get govt nod to surrender projects

Government today approved the applications of as many as 56 special economic zone (SEZ) developers, including JSW Aluminium and Parsvnath, to surrender their projects.
The numbers reflect erosion of investor interest for these zones, which once emerged as export hubs.
The decision regarding this was taken by the Board of Approval (BoA) headed by Commerce Secretary Rajeev Kher today.
A total of 57 developers sought approvals for the same.
Except one, the Board has approved all the proposals to surrender projects, Kher told PTI.
Before surrendering their projects, the developers have to refund duty benefits if they have availed any.

Out of 57 SEZs, 35 tax-free enclaves are from IT/ITeS sector, while other sectors include engineering, biotechnology, gems and jewellery, pharmaceuticals and textiles.

In all these cases, formal approvals had been granted. However, since there was no significant progress made by the developer/co-developer, the concerned development commissioner had proposed for cancellation of formal approval granted to these developers.
Parsvnath SEZ Ltd had proposed IT/ITeS zone in Indore. The SEZ was notified in July 2007. Similarly, DLF Commercial Developers too had proposed an IT/ITeS zone in Noida.
Other developers who had sought the government's approval to cancel there zones include Navi Mumbai SEZ, Deccan Infrastructure and Land Holdings, Gujarat Industrial Development Corporation and Delhi Metro Rail Corporation.

Earlier, over 60 SEZ developers have already surrendered their projects.
SEZs, which emerged as major export hubs in the country, started loosing sheen after imposition of minimum alternate tax (MAT) and dividend distribution tax (DDT).
To revive investor sentiment, the Commerce Ministry has suggested the Finance Minister to remove these duties.
Exports from these zones increased from Rs 22,840 crore in 2005-06 to Rs 4.94 lakh crore in 2013-14. The Commerce Ministry is struggling to increase exports as the country's shipments in the last three years have been hovering around USD 300 billion level.