Decision on SEZ proposals of poll bound states deferred

Bearing in mind the model code of conduct, the inter-ministerial board on SEZ today approved only one of the five applications for setting new special economic zones, deferring decision on all proposals related to four poll bound states.

"One new SEZ (of Artha Infratech in Uttar Pradesh) was approved. We have taken a conscious decision on anything concerning governments which are going to elections and have deferred all those proposals," Commerce Secretary Rahul Khullar told PTI after chairing the Board of Approval (BoA) meeting here.

Assembly elections have been announced in four states - Tamil Nadu, West Bengal, Kerala, Assam-- besides the Union Territory of Puducherry.

In all about 24 decisions related to SEZs falling in poll bound states were deferred.

Special Economic Zones (SEZs) have emerged as a major source of exports as they contributed 35 per cent in the country's shipments in 2009-10.

Decisions on four other applications for setting up new SEZs-- B Raheja Builders, Sterling Port, Cybercity Builders & Developers and SmartCity (Kochi) Infrastructure -- were deferred as the requests were not endorsed by the respective state governments, Commerce Ministry sources said.

Artha Infratech got BoA approval to set up Electronic Hardware and Software including ITITeS SEZ on over 10 hectare in Greater Noida.

The board also allowed extension of time to developers, except those whose SEZs fall in poll bound states, to execute their projects, sources added.

While the BoA rejected the Raheja Haryana SEZ Developers request for relaxation of the land contiguity norms for its engineering SEZ in Gurgaon, it approved a similar request by Wellgrow Buildcon, sources said.

Wellgrow Buildcon proposes to set up electronicsIT and ITeS SEZ in Gurgaon district of Haryana.

The BoA also approved the application of Biomax Fuels, a unit of VSEZ, for import of used cooking oil. The approval was required as import of items like used cooking oil is prohibited.

However, the proposal of Southern Online Biotechnologies, a unit in APIIC SEZ to import prohibited Mutton Tallow and Tallow Oil, was rejected by the BoA, sources added.

So far, 582 SEZs have been formally approved by the BoA, of which 130 are in operation. SEZs have emerged as major sources for attracting investment and increasing exports in the country.

Exports from these zones stood at Rs 2,23,132 crore during the April-December period of this fiscal, as against Rs 1,51,785 crore during the corresponding period of last financial year.

Shipments from SEZs increased from Rs 22,840 crore in 2005-06 to Rs 2,20,711 crore in 2009-10.