SEZ developers seek more time for projects

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SEZ Developers Request Time Extension

In New Delhi, the foremost 9 special economic zone developers across India, featuring entities such as TCS, Parsvnath Infra, and Navi Mumbai SEZ, have formally requested additional time from the government to facilitate the successful implementation of their respective projects. The government is scheduled to convene with these developers on November 8th to thoroughly examine their plans moving forward and collaboratively devise strategies for effective project completion.

Reasons Cited for Delays

These developers attribute the experienced delays to prevailing global economic downturn and the fluctuating market conditions. Specifically, TCS, currently involved in establishing IT zones within Kolkata, India, has formally requested additional time to ensure the successful completion of the project. Similarly, it is worth noting that Unitech Infracon, responsible for constructing an IT zone in Greater Noida, has also submitted a request for a further extension.

Extension Requests and Government Policy

These developers collectively seek an additional year to effectively execute their SEZ projects, primarily due to either the expiration or imminent expiry of the originally stipulated timeframes. The government is furthermore slated to consider two distinct applications for the establishment of new zones within the country. Under the extant SEZ Act, operational units receive substantial tax exemptions, encompassing a 100% tax exemption on generated profits for the initial five years, followed by a 50% exemption for the subsequent five years, with an additional 50% exemption applicable to reinvestments.

SEZ Investment Climate

SEZs have experienced a decline in attractiveness subsequent to the economic slowdown, despite having previously functioned as major investment endeavors. Posco-India Pvt Ltd and Lodha Dwellers have formally requested from the government additional time for effective project implementation.