The mad rush for setting up Special Economic Zone (SEZ) has come to an end as developers are now lining up to either scrap their SEZ projects or put them hold in Gujarat. Larsen and Toubro (L&T) is the latest one to jump on the bandwagon. The leading engineering, manufacturing and construction major has decided to put its heavy engineering SEZ near Surat on hold.
L&T had planned an SEZ for heavy engineering at Suvali and Mora in Choriyasi of Surat district. The SEZ was to come up over an area of 100 hectares. As per the government officials, the overall investment for the project was close to Rs. 4,000 crore.
The company had applied for Centre government's approval in December. However, the company, later on, requested the Board of Approvals (BoA) for SEZs for withdrawal of the proposal, following which the government decided to defer L&T's proposal.
When contacted, the company officials confirmed that the project has been put on hold in the wake of sluggish activities in export market. "Nothing is happening on that front. As of now, we have deferred the SEZ," said a senior company officials.
However, the company may revive the project when the economic activities pick up in future. Like L&T, SPG Infrastructure Pvt Ltd, a Siyaram Poddar Group company, has decided to defer its Rs. 865 crore sector specific SEZ project in Kutch. Indian Steel Corporation Ltd and Gujarat Growth Centre Development Corporation Ltd have communicated to the government to withdraw their SEZs. Realty major DLF got four such SEZs denotified by the commerce ministry, while Parsvnath has put 12 projects on hold. Essar has also sought denotification of its engineering SEZ at Hazira in Surat as all the four units in the SEZ have decided to opt out of the SEZ.
