DLF to go ahead with four IT project, sans SEZ status

DLF is planning to go ahead with its IT park project in all Gujarat, Haryana, Orissa and West Bengal, sans the special economic zone status.

A DLF official confirmed the news and said that while the projects could see a further delay of six to 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," said YK Tyagi, executive director of DLF.

DLF had planned 25 acres IT parks in Gandhinagar, Sonepat, Bhubneshwar and Kolkatta.

In Gandhinagar, the company had been allotted 25 acres of government land at subsidised rates. DLF has recently communicated to the state IT department that it aims to use 50 per cent of the land for IT/ITES while the balance would be used for residential/commercial purpose.

"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 SEZ notification for an IT park, it has to develop 2 lakh sq ft in first eighteen 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 projected to create 2.5 million sq ft of workspace.

DLF had chalked out an investment plan of Rs 850 crore for Gujarat project. DLF was aiming to draw companies like IBM, Cognizant, Mphasis and Symantec to its park, government sources said. It has also been aiming to lease out as less as 5,000 sq ft to accomodate local players including entrepreneurs, sources close to the development said.

The Central government on Monday gave in-principle nod to DLF to withdraw the four IT, ITES Special Economic Zones as the realty major did not want to build in the face of slowdown in the real estate business.