The government has approved the proposals of Wipro Ltd and Mumbai Futuristic Economic Zone to set up special economic zones in Andhra Pradesh and Maharashtra.
The decision regarding this was taken by the Board of Approval in its meeting on September 18.
The BoA, headed by Commerce Secretary Rajeev Kher, is a 19-member inter-ministerial body that deals with special economic zones and issues related to them.
Wipro Ltd has proposed to set up IT/ITES zone in Andhra Pradesh on an area of 1.22 hectares.
"The board noted that the developer is in possession of the land. The Government of Andhra Pradesh has also recommended the proposal.
“Accordingly, the Board decided to grant formal approval to the proposal of Wipro Ltd," the commerce ministry said.
Mumbai Futuristic Economic Zone has proposed to set up two SEZs -- Biotech and IT/ITeS -- in Maharashtra.
While the biotech SEZ would come up over 24 hectares, the IT/ITeS zone would be developed on 10.47 hectares.
The board also approved the change of name of the developer from Mumbai Futuristic Economic Zone Pvt Ltd to Attivo Economic Zone (Mumbai) Pvt Ltd.
Adani Ports and Special Economic Zone Ltd too approached the Commerce Ministry for its multi-product SEZ in Gujarat.
But the matter was deferred by the BoA.
"The Board noted that Department of Revenue has sought some more information and requested to defer consideration of the proposal.
“Therefore, the Board, after deliberations, decided to defer the proposal," it added.
Further, the government has given more time to 13 special economic zone developers, including Navi Mumbai SEZ and Kerala State IT Infrastructure to execute their projects.
According to industry experts, seeking more time for developing projects and surrendering them reflected lack of enthusiasm in the tax-free enclaves due to imposition of minimum alternate tax and dividend distribution tax.
The initial phase of SEZ scheme, launched in 2006, saw developers lining up in big numbers for projects.
But after imposition of MAT and DDT, it started loosing sheen.
However, to boost investor confidence in these zones, the government is planning incentives for developers and units.
The incentives are likely to be announced during the new Foreign Trade Policy, expected by October end.
Exports from these zones increased from Rs 22,840 crore (Rs 228.4 billion) in 2005-06 to Rs 4.94 lakh crore (Rs 4.94 trillion) in 2013-14.
Image: Wipro chief Azim Premji; Photograph: Rediff Archives
.jpg)
