Pasvnath allowed to exit 6 SEZs
22 Jul 2011
The government has permitted Parsvnath to exit six SEZ projects in five states after the developer sought exemption under the changed economic circumstances and the government's move to impose taxes on SEZs and its units.
Parsvnath, in its application, had cited economic slowdown, the finance ministry' plan to impose 18.5 per cent minimum alternate tax on SEZ developers and units as well as the withdrawal of profit-linked direct tax deductions for SEZs.
The Board of Approval for SEZs chaired by commerce secretary Rahul Khullar is also reported to have given more time to 45 developers, including Navi Mumbai SEZ Pvt Ltd, Foxconn India, Electronic Corporation of Tamil Nadu, Raheja, Deccan Infrastructure and Land Holdings and GP Realtors, to complete their projects.
Parsvanath Group had received in-principle approval for the six sector-specific SEZs, including a 100-hectare leather SEZ in Agra, a 100-hectare handicrafts SEZ at Moradabad in Uttar Pradesh, a 45-hectare gems and jewellery SEZ in Jaipur, a 100-hectare food processing SEZ at Kundli in Haryana, a 100-hectare automotive and auto component SEZ in Pune and a 1,000-hectare multi-product SEZ at Kancheepuram in Tamil Nadu.
The BoA grants in-principle approval to feasible SEZ projects that are in need of land.