Govt gives time to 33 SEZ developers for executing projects

SEZs and the issues related to them.

The minutes of the meeting said the developers surrendering their projects have to obtain a certificate from the respective Development Commissioners that 8220;the developer has not availed of any tax/duty benefits under the SEZ Act/ Rules or the same have been refunded8221;.

SEZ developers,including Ansal SEZ Projects and Shyam Steel Industries had approached the BoA for surrendering their projects.

According to industry experts,seeking more time for developing projects and surrendering them reflected lack of enthusiasm in the tax-free enclaves.

8220;Imposition of minimum alternate tax and uncertainty over tax incentives after implementation of the Direct Taxes Code DTC has dampened interest in the tax-free enclaves,8221; a Commerce Ministry official said.

The DTC regime being considered by Parliament proposes to do away with the income tax exemption given to SEZs and instead link tax sops to investments made in them. Profit linked benefits were the main attraction of the SEZ scheme.

The initial phase of SEZ scheme,launched in 2006,saw developers lining up in big numbers for projects. It was also seen as a real estate opportunity.

Other developers that got more time to execute their projects include Navi Mumbai SEZ and Mahindra amp; Mahindra Ltd.

The BoA also approved four new proposals,including Jubilant Infrastructure Ltd,which has proposed to set a biotech SEZ in Karnatka.

However,to boost investor confidence in these zones,the government is planning incentives for developers who want to set up SEZs in remote and undeveloped areas.

Overseas shipments from the 153 operational tax-free havens have come down to 12 per cent in the country8217;s total exports,from about 30 per cent in previous years.