IT SEZ Updates: 9/7/09

BOA TO TAKE UP FRESH SEZ PROPOSALS ON AUGUST 11
New Delhi
The Economic Times  The Financial Express  

The Board of Approval, the apex body which clears Special Economic Zone projects, will meet next month to approve fresh proposals.

"The Board of Approval chaired by Commerce Secretary Rahul Khullar will take up fresh proposals for setting up SEZs on August 11," a senior Commerce Ministry official said.

The last BOA held on June 19 had approved two fresh proposals, ratified extension of time to 23 developers, including Satyam Computer Services, for implementing tax-free enclaves.

Senior officials from different ministries, including Finance, Home Affairs and Defence, would be attending the meeting, a Commerce Ministry official said.

So far 576 formal approvals have been granted for setting up of SEZs, out of which 319 have been notified.

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

COMING SOON, CHEAPER LOANS FOR SEZ DEVELOPERS
Amiti Sen, New Delhi
The Economic Times

The government may soon release a new set of rules that will make domestic borrowing cheaper for developers of special economic zones (SEZs), thereby boosting investment in these tax-free manufacturing hubs.

The Reserve Bank of India (RBI) recently granted infrastructure status to projects in these SEZs that will let them access cheaper funds. The central bank will now release revised commercial real estate exposure (CREE) guidelines for banks to identify activities that can be classified as infrastructure.

The draft norms have been circulated for comments to banks and general public, and once they are finalised, SEZ developers will be able to source funds at about 2 percent cheaper rates for most activities in the processing areas that are likely to be classified as infrastructure, a government official said.

The move will benefit both small and big SEZ developers such as Reliance, Adani and Essar, and IT companies such as Infosys and Wipro.

IT FIRM IN ARYABHATTA PARK TO TAKE OFF IN AUG
Hubli
The Times of India

The IT dreams of the twin-cities may be a reality soon. The first ever IT company to occupy space in the Aryabhatta Tech Park is set to take off in one month's time. Thanks to the infrastructure development taking place in the park and in the city.

A software development and BPO firm N S Infotech Pvt Ltd took up construction work on the 40,000-sqft area it had been allotted. Company promoter Santosh Huralikoppi said here on Monday that the firm will start functioning from the second week of August.

The Hubli-Dharwad Municipal Corporation, that is in charge of infrastructure development in the 26-acre park, has completed building a one-kilometre-long road inside the park and begun work on other facilities.

Assembly Speaker Jagadeesh Shettar who inspected the area on Monday, said facilities like fixing boundary line and constructing compound walls, landscaping and other amenities will be provided soon. He said, the IT department officials had promised more funds for these works.

The state government is trying to get SEZ status for the IT park. For this, we need to have a large tract of contagious land. We need to shift the KSRP building that is situated inside the park area. "I will take up the matter with the state law minister Suresh Kumar," he said.

The Karnataka State Law University authorities are using portions of the KSRP building and they will be asked to move out too. Shettar hoped that more IT and ITES companies will start functioning from here. "I am sure these companies will start work once all infrastructure is ready. However, the state government will take back the land if the companies don't start work in two years," he said.