Welspun seeks denotification of its Anjar SEZ

The number of special economic zones (SEZs) in Gujarat seeking denotification keeps growing, with now Welspun Anjar SEZ Limited applying for the same with the government. The Welspun Group company has set up a sector specific SEZ for textiles and garments at Anjar in Kutch, Gujarat.

The company's request for denotification will be soon taken up in a meeting by the Board of Approval (BoA) SEZ, Government of India.

Spread across an area of 109.59 hectares, the SEZ was functional with units working on textile and garment products for exports.

However, citing 'non-viability', Welspun Anjar SEZ Limited has sought denotification.

The SEZ was notified on September 17, 2007. An emailed query to Welspun Group did not solicit any response.

According to the application for denotification, the company has stated that the units in the zone have been debonded and "an amount equivalent to the tax/duty exemption availed has been deposited to the Government Account".

The denotification application by Welspun Anjar SEZ follows closely after the BoA recently approved denotification of 40 per cent of Reliance Industries Limited (RIL)'s Jamnagar SEZ since the company plans to invest Rs 45,000 crore projects in that area to cater to domestic market.

In recent past, the other SEZs in Gujarat that got denotified include a textile and apparel SEZ of Pradip Overseas Limited (POL) and Gallops' multi-product SEZ of NG Group in Ahmedabad, K Raheja Corporation-led special purpose vehicle (SPV) Strength Real Estate Pvt. Ltd.'s IT/ITeS SEZ at Vemali near Vadodara as well as Essar's Hazira SEZ.

Meanwhile, the companies had cited global recession, unsuitability of the land allotted by the state government and loss of tax benefits under the direct tax code (DTC) as their reasons for its loss of interest.