)
Government has cancelled 58 proposals for setting up special economic zones (SEZ) by various developers till July 31, said minister of commerce and industry D Purandeswari in her reply to the Lok Sabha today.
“Board of Approval on SEZs has approved 58 such requests for de-notification of SEZs till July 31, 2913. The reasons given by the developers for de-notification include global economic slowdown, poor market response, non-availability of skilled labour force, lack of demand for space, changed fiscal incentives regime for SEZs etc.,” the minister said in a written reply in the Lok Sabha.
On a separate query on SEZs, Purandeswari said that exports from SEZs stood at Rs.1.3 lakh crores in the first quarter of the fiscal. A total of 173 SEZs have commenced export. So far the government has approved 576 proposals out of which 392 have been notified.
“Businesses established in SEZs are as susceptible to the external environment similar to businesses in the domestic tariff area of the country. Global economic slowdown has had an adverse impact on SEZs as well. In order to address the challenges being faced by SEZs, certain amendments in SEZ policy and its operational framework have been made with the objective of making SEZs more investors’ friendly,” she said.
