Satyam to go slow on expansion, seeks more time for SEZs
Press Trust of India / Jan 21, 2010, 19:00 IST
Mahindra Satyam has approached the Commerce Ministry for more time to develop the three IT Special Economic Zones in Andhra Pradesh as it has decided to go slow on its expansion plans due to the slowdown.
Besides Mahindra Satyam, Wockhardt Infrastructure Development and the Kandla Port are among the 11 applicants that have sought extension.
The Board of Approval (BoA), headed by Commerce Secretary Rahul Khullar would take up these requests on February 11, an official said.
"In its application, Mahindra Satyam has said due to the global economic recession and IT slowdown in particular, it has decided to go slow on the infrastructure and expansion plans..." the official said.
Mahindra Satyam (earlier Satyam Computer Services), which survived one of the worst accounting frauds in the country last year, is in the process of "analysing the global economic situation to amend its expansion plans appropriately".
It had already been given extension for implementing the projects at Hyderabad and Visakhapatnam, which was to lapse in June.
Tech Mahindra, in which Mahindra & Mahindra holds 45 per cent stake, acquired scam-tainted Satyam Computer in 2009. The scam came to the fore after Satyam founder B Ramalingaraju admitted to accounting fraud involving multi-crores of rupees.
The debt-ridden Mumbai-based pharmaceutical Wockhardt Group's arm--Wockhardt Infrastructure has approached the BoA for its Aurangabad (Maharashtra) SEZ. Kandla Port Trust has also sought more time for its multi product SEZ in Bhuj, Gujarat.
As of now, 105 developers have already been given additional time for execution of their tax free enclaves.
The government would also take up eight fresh proposals, including that of Jawaharlal Nehru Port Trust and Ozone SEZ, for setting up SEZs in different parts of the country.
The SEZ units are given 100 per cent tax exemption on income for the first five years, and 50 per cent for the next five years. Another 50 per cent deduction is given on the ploughed-back profits for five years after ten years.
A total of 579 SEZs have been approved and 335 of them have been notified. Over 100 are currently operational.
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