Parsvnath Infra to surrender IT SEZ in Uttrakhand

Parsvnath Infra has approached the government for surrendering its IT/ITeS special economic zone in Uttrakhand in the backdrop of the state government not coming out with its SEZ policy.

The request of the developer would be considered by Board of Approval (BoA) headed by Commerce Secretary S R Rao in a meeting on November 8.

"Now, the developer has requested for de-notification of the SEZ as in spite of the best efforts Government of Uttarakhand has not yet come out with their SEZ policy due to which the layout plan of the SEZ, even though submitted as early as March 2008, cannot be approved," the agenda of the BoA meeting said.

The company has planned to set up the zone in Dehradun. It was to come up in an area of 13.54 hectares and it was notified on September 28, 2007.

The development commissioner has recommended the request for de-notification as no activity has been carried out by the developer, it said.

Another developer Mayar Infrastructure Development has also requested to denotify its sector specific SEZ for Biotechnology at Gurgaon.

"The developer has requested to de-notify complete 25.7177 hectares of his SEZ for the reason that the project is not viable considering the huge cost and expenses," it added.

Special Economic Zones (SEZs), which emerged as major export hubs and investment destinations started loosing sheen after the global economic crisis and imposting of minimum alternate tax.

Exports from these zones declined by 4.1% during the first quarter of the current fiscal.

However, the government is taking steps to revive interest of investors for SEZs. Recently, it had unveiled a package of reforms including easing of land norms to revive investments in SEZs.