New Delhi: Reflecting slow implementation of SEZ scheme, the government has given more time to as much as 184 special economic zone developers to execute their projects.
“The Board of Approval (BoA) depending on merits of each case, have permitted extension of validity of approval of 184 SEZs beyond the initial 3 years...,” minister of state for commerce and industry Jyotiraditya Scindia said in a written reply to Lok Sabha.
BoA, headed by commerce secretary Rahul Khullar is an inter-ministerial body that deals with SEZs and related issues.
“Requests for extension of validity period beyond the initial period of three years have been received from developers citing global economic slowdown/delay in getting requisite clearances etc. as grounds for extension.
Interest in SEZs, which give substantial tax benefits to units and developers, is also on the decline, as the draft Direct Taxes Code (DTC) of the government proposes to curtail the sops.
The DTC Bill, if cleared by Parliament, will overhaul the country’s Income Tax Act.
SEZs have emerged as major sources of attracting investments and increasing exports.
During April-September 2010-11, physical exports from 122 operational tax free enclaves stood at Rs1,39,841 crore, an increase of 55.8% over the year ago period.
In the last four years, the government has approved 580 SEZs.