'Centre cancels approvals to set up six SEZs in MP'

The Centre has cancelled formal approvals given to set up six Special Economic Zones (SEZ) projects in Madhya Pradesh after developers failed to take interest in developing them, official sources said.
"The Board of Approval (BOA) headed by Central Government's Commerce Secretary Rajiv Kher in its meeting on February 20 has cancelled the formal approval granted to six proposed SEZs in Madhya Pradesh on the basis of recommendations made by the concerned authorities," Madhya Pradesh's SEZ Development Commissioner A K Rathore told PTI today.
These SEZ projects are Parshavnath SEZ Limited's proposed IT SEZ in Indore, Zoom Developers proposed multi- services SEZ in Indore, Malwa IT Park Limited's proposed IT SEZ in Indore, Gwalior Agriculture's proposed multi-services SEZ in Indore, Cassandra Reality's proposed IT SEZ in Indore as well as Writers and Publishers' proposed IT SEZ in Chhindwara.

Rathore said that all these SEZs were given formal approvals from 2006 to 2008, but their developers had not taken interest in developing them because of different reasons after which a recommendation was made to the Commerce Secretary to cancel their formal approval.
Meanwhile, figures revealed that out of ten notified SEZs in the state, only two became functional and began exporting products which included multi-product SEZs at Pithampur near Indore and Crystal IT Park, also in Indore.
Rathore said that infotech SEZs have a bright future in the state and proposed SEZs of major firms like TCS, Infosys as well as Impetus in Indore would begin software exports from their respective units by 2017. These SEZs were notified in 2013.

Noted economist Jayantilal Bhandari blamed tough SEZ rules and procedures in force, for the situation.
He said that though developers expected the Prime Minister Narendra Modi-led government to reduce rates of the Minimum Alternate Tax applicable to SEZs in the budget, they were disappointed.