Mukesh Ambani’s Reliance Industries Ltd has got a year’s extension for its special economic zones in Haryana and Navi Mumbai. The company had sought more time from the Union ministry of commerce and industry to start perations in these SEZs, citing global economic slowdown as the reason.
Among others which have got an extension are Indiabulls, Tata Consultancy, Foxconn India and Tamil Nadu Industrial Development Corporation Ltd. The Board of Approval (BoA) for SEZs under the ministry, headed by commerce secretary Rahul Khullar, today granted extension to 15 such proposals where formal approval had been granted but operations were yet to begin.
The BOA also granted a second extension of validity for some other formal approvals for SEZs. These included Bengal Shapoorji Developers Pvt Ltd, Claridges SEZ Developers Ltd, Cognizant Technology and Bajaj Holdings and Investment Ltd.
“The Board of Approval has approved the requests for extension of time of all the developers,” D K Mittal, additional secretary, said after the meeting.
The government also gave its nod to six new proposals to set up SEZs. Among these were Larsen & Toubro and Kerala State Information Technology Infrastructure Ltd. The inter-ministerial board also granted three in-principle approvals to Hindalco Industries Ltd in Madhya Pradesh, Drugs and Pharmaceuticals Manufacturers Association in Andhra Pradesh and Sealand Ports Pvt Ltd.
The BoA also allowed the surrender of projects by Larsen & Toubro, Gulf Oil Corporation Ltd, Bata India Ltd and NSL SEZ (Chennai) Pvt Ltd. The lack of clarity in the provisions under the proposed Direct Tax Code and Goods and Services Tax regulations were given as the main reason by L&T for surrendering its information technology SEZ in Mumbai, besides lack of enough activity in the sector after the recession.
In the case of Bata India Ltd, the company has given an undertaking to refund all the benefits availed under the SEZ Act and Rules.
The government has given formal approval for setting up 574 SEZs, of which 353 have been notified. Exports from SEZs reached Rs 2,20,711 crore in 2009-10, up 121.3 per cent from the previous financial year. Total investments made in SEZs has been Rs 1,48,489 crore and these provide employment to 503,611 persons, Khullar said.
