When ‘Airmid Developers’ sought a no-objection certificate from Haryana Industries department few months back, as a part of completion of the de-notification process for their planned special economic zone (SEZ) in Haryana, it reflected the sad state of how SEZs are shaping up in the state. Airmid Developers is a wholly-owned subsidiary of ‘India Bulls Real Estate Limited (IBREL).
From more than 100 SEZ developers that had shown interest in setting up SEZ in Haryana, 46 SEZ developers were approved by the Government of India and 17 ‘in principle’ approval was granted for SEZs. However, till date, 14 ‘in principal’ approval have lapsed while two SEZs in Haryana have sought de-notification.
Airmid Developers, in June, had sought a no-due certificate from the Haryana government as part of the de-notification for their upcoming SEZ. The proposed SEZ in the IT/ITES sector, coming over 28 acres of land in Gurgaon, sought an investment of Rs 750 crore, giving employment to 50,000 persons.
Prior to Airmid Developers, DLF was the first player in Haryana to seek de-notification for their upcoming IT/ITES SEZ spread over 10 hectares of land in Sonepat.
So what has been the reason behind this tardy SEZ progress in Haryana?
Manoj Goyal, senior vice president, Raheja Developers, maintains, “There are multiple factors that have led to slow progress of SEZs.”
Raheja Developers is also coming up with a couple of SEZs in IT/ITES and multi-product categories in Haryana. The extension for the projects stands lapsed as on date even as company officials claim they are seeking extension for the same.
Impositions of MAT, undoubtedly has been the biggest trouble for tardy progress of SEZ.
Imposition of MAT levying 18.5 per cent tax on SEZ developers and units, who earlier were exempted from the tax, has hurt the sentiments.
Ajay Nijhawan, convener, panel on SEZ Developers, maintained DTC and MAT are the biggest culprits behind slow progress of SEZ in the state so far.
Manoj Goyal added besides MAT hurting investors and developers sentiment it is also multiple channels through which developer has to move before having the clearances. In absence of single window mechanism to facilitate SEZ developer quickly move through all his clearances, the multiple window acts as an impediment.
Few developers also believe the Haryana government officials lackadaisical attitude towards getting things cleared also hurts. While there was an ‘open house meeting’ held earlier this year units with SEZ developers in Haryana, issues raked by the developers still remain un- settled, laments developers.
