The Commerce Ministry will take up 22 proposals of special economic zone (SEZ) developers that have approached it to surrender their tax free zones. Of 22 SEZs, 19 are from IT/ITeS sector, while other sectors include multi-product, engineering, hardware and software. Besides, the board would also take decision on the applications of 27 special economic zone developers that have sought more time to execute their projects. The Board of Approval (BoA) would also consider the proposal of Infosys Ltd to set up a new IT/ITeS zone in Karnataka.
The decisions on surrender and time extension will be taken by the BoA chaired by Commerce Secretary Rajeev Kher. About the developers wanting to surrender their projects, the BoA has stated that a formal approval has been granted by the DoC (Department of Commerce). However, since there is no significant progress made by the Developer/co-developer, the concerned DC (development commissioner) has proposed for cancellation of formal approval granted to the developer. SEZs started losing sheen after the imposition of minimum alternate tax (MAT) and dividend distribution tax (DDT). Industry has sought a reduction or removal of these taxes to boost investments.
The 22 developers who have approached to surrender their SEZ include Tamilnadu Industrial Development Corporation and Sunwise Properties, Raaga Mayuri Builders, Township Developers India, Progressive Buildestate, GHI Finlease and Investment, Mikado Realtors, Uppal Housing, Sarv-Mangal Real Tech and Mohan Investment and Properties. While those who had asked for more time include Gulf Oil Corporation, Vedanta Aluminium, Kandla Port Trust and Indiabulls Industrial Infrastructure.