The commerce ministry has received 18 proposals for setting up special economic zones (SEZs), which are likely to be considered by an empowered board after the new government assumes office later this month.
The Board of Approval (BoA), chaired by Commerce Secretary GK Pillai, may meet immediately after the new government is formed to take up the SEZ proposals, a senior official said. However, it remains to be seen whether the ministry could go ahead clearing the SEZ proposals in terms of the policy framework of the UPA if the same coalition does not return to power.
“The BoA will meet later this month to consider 18-20 SEZ proposals,” the official said. He said that due to the global credit squeeze, only companies that were serious in setting up tax-free enclaves were coming up with proposals.
According to industry sources, India’s major real estate players like DLF and Parsvanath have been unable to raise funds for their SEZ projects. DLF has approached the government on surrendering its four of the nine notified SEZs on IT-ITeS, while Parsvanath had put on hold its 12 IT/ITeS SEZ projects.
Most SEZ developers have sought time from the commerce ministry to complete their projects. The 19-member inter-ministerial BoA met in February and had approved 10 proposals for setting up SEZs, including those of Larsen & Toubro and the Navi Mumbai SEZ, promoted by an aide of Reliance Industries Chairman Mukesh Ambani.
Exports from the SEZs increased by 36 per cent to Rs 90,000 crore in 2008-09 from Rs 66,638 crore in the previous fiscal.
As in March 2008, 568 SEZs have got formal approval, 144 ‘in-principle’ approval, and 311 are notified. Of this, 90 are functional.
Source:Business Standard