14 September 2014
NEW DELHI: As many as 14 special economic zone developers, including GP Realtors and Navi Mumbai SEZ, have sought more time from the government for implementing their projects.
The inter-ministerial Board of Approval (BoA) chaired by Commerce Secretary Rajeev Kher will consider these requests at its meeting on September 18.
GP Realtors has proposed to set up IT/ITeS zone in Gurgaon. It has invested Rs. 172.22 crore till date, including cost of land.
The developer has sought extension of the validity period of formal approval beyond November 13, the agenda of the BoA meeting said.
“The developer has already been granted four extensions, validity of which is up to 22nd October 2014. The developer has requested for further extension so as to implement the project,” it said.
The board will also take up seven applications including that of Air India Ltd and Pidilite Industries for extension of letter of permission.
SEZs, which were once major vehicles for investment and export promotion, started losing sheen after the global meltdown and imposition of minimum alternate tax (MAT) and Dividend Distribution Tax (DDT).
The Commerce Ministry is expected to announce fiscal and non-fiscal incentives to these zones in order to revive investor sentiment.
In 2011, government had imposed 18.5 per cent MAT on the book profits of special economic zone developers and units.
Exports from these zones increased from Rs. 22,840 crore in 2005-06 to Rs. 4.94 lakh crore in 2013-14.
Courtesy of NDTV