| IT feeds SEZ gold rush |
| Siddharth Zarabi & KP Narayana Kumar / New Delhi February 14, 2006 |
| The rush to set up special economic zones is being led by the information technology and IT-enabled services sector. Of the 117 proposals approved by the Centre so far, over a third (44) are from such companies. The list includes some top names in the business like TCS and Wipro and also a host of lesser known players like the Gurgaon-based Pioneer Profin and the Bangalore-based Cessna Garden Pvt Ltd. Together, the 44 proposals entail an investment of Rs 16,000 crore for over 8,230 acres of land, from the Rangareddy district in Andhra Pradesh to Moradabad in Uttar Pradesh. The total acreage envisaged under the 117 approved SEZs is a whopping 225,901 acres. Putting up a project in an SEZ fetches a company a host of fiscal benefits like 100 per cent tax exemption under Section 10A of the Income Tax Act, duty free imports, extension of tax benefits under Section 80 IA and external commercial borrowings without any maturity restriction. IT and ITES companies also seem to have taken a special liking for the National Capital Region with 11 zones choosing to be located in this area. Chennai has attracted 10, Bangalore and Pune five each and Kolkota four. These zones also propose to provide employment in very large numbers. Shyamaraju & Company |
