Amidst controversies, global IT giant Hewlett Packard has decided to drop its plans for a Special Economic Zone in Bangalore following changes in the government norms on the minimum area requirement.
The company has informed the commerce ministry that as it would not be in a position to meet the new stipulation of minimum area required for IT and IT enabled Services, it was withdrawing its application, which had received the formal approval.
Initially the world's largest computer maker wanted to set up SEZ over an area of 60,000 sq metres. However, later the minimum built-up area of an IT, ITeS and electronics SEZ was revised upwards to 100,000 sq metres on the directive of the empowered Group of Ministers.
HP had got final approval from the Board of Approvals for the SEZs in September 2006 but it decided that it would not be able to match the condition of minimum build-up area and gave up its plans.
Apart from HP, CA Associates, another developer proposing to set up IT and ITeS SEZ in Hyderabad, has also decided not to go ahead with its plans even after having final approval.
With two companies dropping out, the number of developers having final approvals for SEZ has come down to 235 from 237.