CA Computer Associates, which wanted to set up an infotech and enabled services SEZ near Hyderabad, has intimated the commerce ministry that it will not be setting up the zone any more as it is not feasible for them.
Maharashtra has the highest number with 48, followed by 44 in Andhra Pradesh, 28 in Karnataka and 25 in Tamil Nadu. There are 22 functional SEZs, which have recorded exports worth Rs 22,000 crore in 2005-06.
In Bangalore Hewlett-Packard, which wanted to set up an infotech and enabled services SEZ, spread over 60,000 square metres, had got the formal approval in September 2006. But the minimum area for infotech and enabled services SEZs was changed to 100,000 square metres, which the company did not find feasible.Recently the commerce ministry has written to 50 developers of SEZs, which already have formal approval, to furnish details of the projects current status. Developers who have made little progress may see the approvals being cancelled or may voluntarily wrap their plans as seen with CA and HP. It may be recalled that the commerce ministry was planing a six-month time limit for completion of procedural formalities for the approved zones.
The government grants formal approvals to those SEZs that possess the required land. After the formal approval is given, the developers have to complete various procedural matters in their respective states, which include furnishing proof of legal right and possession as well as a certificate that the area is free from any legal liabilities from other parties.
The Andhra Pradesh government is set to develop 31 special economic zones (SEZs) for information technology (IT), state Finance Minister K. Rosaiah said during his budget speeech. The truth is companies to which these SEZ's are alloted are bailing out citing legal tussles and feasiblity. All the government can hope now is more don't follow.
Sources said five developers, who have in-principle approval for SEZs, have also given up their plans. Many opted out because the land they identified for SEZs was not available.
The good news is that Semiconductor SEZ is here to stay, the first phase of the prestigious semiconductor manufacturing facility ''Fab City'' near Hyderabad is already underway while the second phase would begin once the central government announced the semi conductor policy.
Of all the formally approved SEZs, Maharashtra has the highest number with 48, followed by 44 in Andhra Pradesh, 28 in Karnataka and 25 in Tamil Nadu. There are 22 functional SEZs, which have recorded exports worth Rs 22,000 crore in 2005-06.
With this, the total number of formally approved SEZs has come down to 235, of which only 63 have been notified. The Empowered Group of Ministers on SEZs has put all decisions related to SEZs on hold, barring the notified ones.
Source: The Hindu, Business Standard
