Developers hesitate to invest in SEZ land

By Accommodation Times News Service

Recently ministry of commerce have discussed paper highlighted that there is a perception that many developers do not set up the proposed SEZ and continue to hold on to large parcels of land with the intention of benefitting from its alternative usage and land price.

The commerce ministry paper has pointed out that SEZ flaws. Basically SEZ is concentrated in majorly in six states only i.e. Andhra Pradesh, Kerala, Maharashtra, Gujarat, Tamil Nadu and 92% of total experts.  SEZ is also located around the urban centers.

Economist at National Council of Applied Economic Research (NCAER) said, SEZ has become a dirty word for the developers. Government do not see any political returns in pushing them and companies thus do not get much political support. That there also seems to be lack co-ordination between the centre and the states the latter can evolve their SEZ policies within the board framework laid down by the centre. Many developers complain they get tax breaks and concessions from the centre but not from the states.

With the minister says, if there are delays beyond permission actions are taken the fact of the matter is that the developers are increasingly approaching the government either seeking more time for implementing of their projects or to surrender their projects.  Promoters have laid down their projects. The developers have cited global slowdown, imposition of minimum alternate tax and lack of response from infrastructure developers as major reasons for surrendering projects.

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