Social infrastructure activities in SEZs yet to get govt nod ,

ARUN S
Posted online: Thursday, October 26, 2006 at 0000 hours IST

NEW DELHI, OCT 25: Even a month after the Board of Approval (BoA) for
Special Economic Zones (SEZs) came out with a list of authorised
activities regarding construction of social infrastructure in the
non-processing area of SEZs, the government is yet to officially notify
the activities.
Commerce ministry sources said the finance ministry was still studying
the list to give a final go-ahead. Due to the delay in notification,
several developers have been complaining about a lack of clarity.

32 SEZs have so far been notified and the developers will now be coming
to the BoA for approval of infrastructure activities.

After the list was released on September 21, the BoA held three more
meetings to give approvals to SEZ proposals. Another BoA meeting is due
on October 27. More developers will be approaching the BoA for clearance
of these activities, since the BoA has also given formal approval to 212
SEZs and in-principle approval to another 152.

Roadblock
• Finance ministry still studying the list of authorised activities in
the non-processing area of SEZs
• Developers will soon be approaching the BoA for clearance of
activities in non-processing areas
• SEZ land is divided into processing area (35% of the total area) and
the rest is non-processing area

CB Richard Ellis’ South Asia MD Anshuman Magazine said: “Several
developers are still confused about the policy. This is causing delay in
execution of projects.”

Unitech Ltd managing director Sanjay Chandra said: “There is
uncertainty. We have to plan fast for big investments and these delays
and changes in policies are causing difficulties”.

The finance ministry, however, is not under any timeframe to give
approval to the list. As per the SEZ Act , which says such a list has to
be authorised by the Centre, the notification is a technical
requirement. Once the list is notified, the BoA will use it for
“authorising operations which only would qualify for exemptions,
concessions and drawback”.

Some of the authorised activites eligible for the BoA nod for IT/ITES
SEZs and sector specific and multi-product SEZs are: roads, water
supply, effluent treatment plant, electrical substations, offices,
parking, swimming pool, recreational facilities, medical centre, bus
bays and Wi-Fi services.

But for sector-specific SEZs, in addition to the above, construction of
rail head is also an authorised activity. In multi-product SEZs,
building a port, airport/air cargo complex, banks and golf course are
also considered authorized activities. “It is appropriate that the list
is notified as early as possible as it will help the BoA in giving
clearance to these activities and also the developers in going ahead
with their projects faster,” an commerce ministry official said.

http://www.financialexpress.com/fe_full_story.php?content_id=144514