Latest Property News on 'Special Economic Zones'

CAG Report Reveals a Rs. 2,000-Crore Revenue Leakage in SEZ Units

With units in special economic zones (SEZs) permitted to treat their domestic sales as export earnings, the government had to forgo revenue amounting to nearly Rs. 2,000 crore, the Comptroller and Auditor-General of India (CAG) has revealed.

Making a case for an amendment to the SEZ Act, the CAG, in its report presented to Parliament on Tuesday, said: “SEZ units have been achieving the prescribed net foreign exchange earnings (NFE) mainly through domestic sales, defeating one of the sub-objectives of the scheme, which was to augment exports.” Read More »

Removal of Tax Sops for SEZ’s

The Empowered Group of Ministers (eGoM), under the Chairmanship of the Union External Affairs Minister, Mr. Pranab Mukherjee, is meeting here on February 4 to examine the merit of the Finance Ministry’s plea for removing a slew of tax exemptions provided to the Special Economic Zone (SEZ) and their developers.

Sources in the Government told that the Finance Ministry has drawn the attention of the eGoM on the revenue loss on account of tax exemptions to units in SEZs which has been estimated to be Rs 1,02,621 crore for the period 2006-07 to 2009-10. Out of this, the revenue loss due to direct taxes is reckoned to be Rs 53,740 crore and on account of indirect taxes Rs 48,881 crore. Read More »

Hirco to Invest $198 mn in Mumbai Township

Indian property developer Hirco put $198.1 million in a 280-acre mixed Township development project in proximity to Mumbai.

The Panvel Residential Township, which comprises 18.3 million square feet of planned residential and retail space, is situated near the planned second Mumbai International Airport. The project is very close to Mumbai’s Central Business District.

The Township is designed to cater increasing demand of residential property from India’s middle classes in Mumbai-Pune growth corridor. The company is likely to offer flats, townhouses, villas, healthcare facilities, and other amenities required to create an excellent structure. Read More »

DLF bids highest for Tidel-II

DLF Ltd, India’s largest real estate development company, has emerged as the highest bidder for establishing the Tidel-II, the second IT/ITes SEZ in Chennai.

DLF made a bid of Rs 26.07 crore an acre for the 26-acre property at Taramani and take the total bid amount to Rs 660 crore in the closed bids called by Tamil Nadu Industrial Development Corporation.

DLF bid at a rate of Rs 5,757 per sq ft for the property including 11.32 lakh sq ft. Other real estate developers bidding for the property were Ascendas, RMZ Corp, and Prestige Group. Read More »

Commerce Ministry Frames New Guidelines for SEZs

The Commerce & Industry Ministry has released a new set of guidelines for the state government to follow a single window clearance system for special economic zone (SEZ) units and builders.

The SEZ Act and rules released earlier promised a mechanism of single window clearance for developers and units.  However, it could not be executed at that time as state governments were not able to get their act together.

According to the guidelines, units and developers will be exempted from paying VAT and stamp duty in the processing area. The decision has been taken at a meet between representatives of commerce department and state governments. Read More »

Gujarat Leads National Chart in Terms of Area Occupied by SEZs

Finally, Gujarat has emerged as the leading SEZ state. Thanks to prohibitive investments in the segment. Around 15,000 hectares of the state land is to be utilized for the development of these duty free enclaves. Gujarat leads the national chart on the back of same fact in terms of geographical area occupied by SEZs.  The Board of Approvals has given the nod for the construction of five more such projects in Gujarat.

Following in footsteps of Gujarat is Maharashtra. With the total 11,500 hectares reserved for SEZs, the state wins the second position. Andhra Pradesh has 11,000 hectares of area under SEZs which puts it after Maharashtra. Tamil Nadu comes to a fourth position with around 5,000 hectares and Orissa has 2,500 hectares. Read More »

SEZ-Undue Emphasis On IT

Special Economic Zones (SEZs) have been a subject of hot debate in India for quite a lot of time now. Some call it a potential trigger to the economic growth story of India while some call it the source of mass conflicts; Nandigram as a stark example.

Well, social theories apart, we can’t really say that the concept of SEZ in India should have been the way it is. Read More »

Gurgaon on Track to become a Major SEZ HUB

With 52 Special Economic Zones to come up in Gurgaon, this cyber town is all set to become a major SEZ hub. Around 34% of the agricultural land in Gurgaon will be utilized by these duty free enclaves which boast to generate a huge plethora of job opportunities. Not all of these SEZs will be spread over a large area.

Of total 52 SEZs, only five will be developed as multi-product enclave whereas 36 will cater to IT/ITes. There will be four bio-tech SEZs and three SEZs in the categories of textile and jewellery. Read More »

‘Goa SEZs’ Hang in Limbo

With an expected proliferation of IT companies in Goa, the state authority has sought permission to set up 15 Special Economic Zones (SEZs). Of this, the Centre has given a nod for seven of them. Although, Goa has got the approval but still has to decide on the procedure of acquiring land.

Land is a factor that appears hard to come by in Goa. Around 40% of the state’s land come under forest zones, and hence, cannot be considered for commercial purpose. On the other hand, the available prospective land is abided by stringent rules framed during the Portuguese rule. Read More »

Trikona Cap Takes 33% Stake in Uppal’s 67.5-acre Haryana SEZ

Real estate fund Trikona Capital has acquired 33% stake in real estate company Uppal’s Group’s Haryana SEZ for around $50 million.

SEZ is owned by a special purpose vehicle (SPV), in which the remaining stake has been acquired by Uppal’s Group. Read More »