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Wednesday, June 3, 2009

IT SEZ Updates : 03/06/09

 

DLF CAN DENOTIFY SEZS ON RETURNING TAX SOPS
New Delhi
Financial Chronicle  Hindustan Times (Delhi edition)  

The government has given an in-principle approval to real estate developer DLF for denotifying four of its special economic zones (SEZs) that it wants to surrender on the condition that all tax incentives given to the zones will be refunded.

The board of approvals (BoA) for these manufacturing hubs met on Tuesday and awarded formal approval to eight SEZ proposals and in-principle approval to two proposals.

DLF has said it owes the government Rs 6-7 crore in the form of tax exemptions given to its four SEZs, according to a commerce department official who did not want to named. "We have to verify that amount. A formal denotification of the SEZs will be done after the due taxes are paid to the government," the official said.

The listed real estate developer has decided to apply for denotification of its SEZs in Gujarat, Haryana, West Bengal and Orissa because it feels these projects are no longer feasible due to the economic slowdown and the liquidity crunch the company is facing.

DLF had received approval for 15 SEZs all of which are in the information technology (IT) and infotech-enabled services (ITeS) sector. Of these, five are operational and another five are in the process of being established.

The company had surrendered one SEZ near Delhi in December 2008. Of the 18 proposals BoA discussed on Tuesday, it gave formal approval to eight SEZs, including three for biotech in Andhra Pradesh, Karnataka and Maharashtra and another three for IT and ITeS in Kerala, Karnataka and Maharashtra.

Two proposals that received in-principle approval are for setting up multi-products SEZs in Andhra Pradesh and Maharashtra. A formal approval to set up these zones would be given once the developers take possession of the land. The board extended the formal approval to projects of 21 SEZ developers that could not meet the completion deadline.

The applications of two others, including Videocon Realty, for an extension of approval, were rejected as that they had not begun the process of acquiring land, the official said.


DLF TO GO AHEAD WITH FOUR IT PROJECT SANS SEZ STATUS
Maulik Pathak, Ahmedabad
Business Standard  The Hindu Business Line  Financial Chronicle  

DLF is planning to go ahead with its four IT park projects in Gujarat, Haryana, Orissa and West Bengal, sans the Special Economic Zone (SEZ) status.

A DLF official confirmed the news and said, while the projects could see a further delay of six-eight months, they are still very much on. The company may, meanwhile, change the land-use pattern also, making more room for housing and commercial activities.

“The Software Technology Parks of India (STPI) status is likely to be extended and this makes good business sense to keep our IT projects on for better times. The investment and size of the projects remain unchanged as of now,” DLF’s Executive Director Y K Tyagi said.

DLF had planned 25-acre IT parks in Gandhinagar, Sonepat, Bhubaneswar and Kolkata.

In Gandhinagar, the company had been allotted 25 acres of government land at subsidised rates. DLF had recently communicated to the state IT department that it aims to use 50 percent of the land for IT/ITeS (IT-enabled Services), while the balance would be used for residential/commercial purposes. “DLF has shown interest in continuing with the IT project in Gandhinagar. We will let them keep the land for the project,” said a senior government official.

Once a developer gets an SEZ notification for an IT park, it has to develop 2 lakh sq ft in the first 18 months. DLF failed to do so and, hence, it requested the Centre to scrap the SEZ status, sources said.

The Gandhinagar project was to be completed by January 2009 and had been projected to create 2.5 million sq ft of workspace. DLF had chalked out an investment plan of Rs 850 crore for the Gujarat project. The real estate major was aiming to draw companies like IBM, Cognizant, Mphasis and Symantec to its park, government sources said. It had also been aiming to lease out as less as 5,000 sq ft to accommodate local players, including entrepreneurs, according to sources close to the development.


GOVT CLEARS NINE SEZS; MOST BELONG TO IT/ITES
New Delhi
Mint  The Economic Times  The Pioneer  The Tribune  Deccan Herald  The Hindu  The Asian Age  The Financial Express  The Times of India  Mail Today  

The government Tuesday cleared nine fresh proposals for setting up special economic zones, most of which related to IT and ITES, followed by the bio-technology sector.

The Board of Approval in the Commerce Ministry gave green signal to Gulf Oil Corporation, L & T, Emaar MGF and MM Tech to set up IT/ITES tax-free enclave in Bangalore, Mumbai, and Chenagamanadu (Kerala), respectively.

Three bio-technology SEZs have been sanctioned for Bangalore, Anantpur (Andhra Pradesh) and Ratnagiri (Maharashtra).

Besides, two multi-product and multi-services SEZs would come up at Kotamandal in Andhra Pradesh and Nasik in Maharashtra.

Since 2006, when the SEZ Act was notified, formal approvals have been granted for setting up 568 SEZs, of which 315 have been notified.

Exports from SEZs grew by 36% to Rs 90,416 crore in 2008-09 from Rs 66,638 crore in the previous fiscal.


L&T INFOTECH SEZ AMONG 8 PROPOSALS OKAYED
New Delhi
The Hindu Business Line

The Board of Approval for SEZs on Tuesday granted formal nod to eight special economic zones, including Larsen & Toubro-promoted SEZ for information technology/ITeS, and in-principle nod to two others.

At its first meeting after the elections, the BoA, headed by the Commerce Secretary, Gopal K. Pillai, considered 18 proposals for establishing SEZs. Among the eight SEZs, three are biotech related — one each in Andhra Pradesh, Karnataka and Maharashtra — three for IT/ITeS in Kerala, and one each in Karnataka and Maharasthra. In the case of in-principle approvals, one is to come up in Andhra Pradesh and the other in Maharashtra for a multi-product SEZ.


SHYAM STEEL TO INVEST RS 500 CRORE FOR IT SEZ IN CITY
Sutanuka Ghoshal & Rakhi Mazumdar, Kolkata
The Economic Times (Kolkata edition)

At a time when West Bengal chief minister Buddhadeb Bhattacharjee’s industrialisation drive has come under cloud, Shyam Steel Ltd, which is setting up a 1.1 million tonne steel plant in the state has just decided to invest Rs 500 crore for setting up an IT SEZ near Kolkata.

The company’s proposal has been placed before the Board of Approvals (BoA) under the commerce ministry for an in-principle approval.

“We have submitted a proposal to set up an IT SEZ near Barasat, which is close to Kolkata. We hope to get all necessary approvals before going ahead with our plans to set up IT infrastructure and export oriented IT units including call centres and BPO facilities,” Shyam Steel director Lalit Beriwala, said.

“Our foray into IT SEZ is part of our plans to diversify into information technology,” he added.

The IT SEZ, which is subject to approval from the commerce ministry, is slated to come up on some 25 acres. Shyam Steel had purchased the land for IT SEZ at Barasat, which falls under Kolkata Metropolitan Development Authority, directly from landowners.

Shyam Steel is likely to float a subsidiary to take up the investment in the IT venture.

“We will route our investment through a new subsidiary. The company is open to the possibility of inviting a strategic partner for the venture,” he said. However, Beriwala said: “The proposal is at a nascent stage and we will apply our minds on this issue at an appropriate time.”

State IT minister Debesh Das said: “Many big IT players are still interested to come to Bengal and we expect that all the IT projects will happen in the state. The IT SEZs too will take shape.”

He pointed out that till date no IT projects have been stalled because of land issue.

“We have every intention to give land to Infosys, Wipro, ICICI, all who have approached us. We are in constant touch with them,” the minister said. However, the growth in employment in the IT sector this year is expected be less than 30 percent.

Meanwhile, West Bengal Electronics Industry Development Corporation (Webel) is all set to finalise a private partner for the proposed Rs 5,000-crore Kalyani Infotech Park within this month. Work at Videocon’s IT SEZ at Siliguri is also proceeding according to the scheduled timeline.

 


 
Disclaimer This Blog aggregates the news from various sources related to IT Industry, SEZ and Commercial Real Estate. All the sources are duly credited.