L&T Chennai Projects, amongst other 3 developers, on grounds of global recession in IT/ITeS sector, general slowdown in macroeconomic scenario and introduction of minimum alternate tax (MAT) and dividend distribution tax, have requested the commerce ministry, for de-notification of the SEZ.
Meanwhile, in absence of sufficient interest for special economic zones, 16 developers including Cognizant Technology Solutions Corp. and Parsvnath SEZ have sought more time from the government for implementing their projects.
SEZs have emerged as major route for attracting investments and increasing exports. So far, 166 zones are operational. However, uncertainty over tax exemptions to new SEZs has also led to declining interest in these tax-free enclaves.
