Commerce to GoM: Clear 41 ‘cleared’ SEZs, roll back freeze

Wednesday January 31 2007 00:05 IST
NEW DELHI: Infosys Technologies, Wipro, Satyam Computers , HCL
Technologies and Bajaj Auto Limited are among the 41 approved developers
who are knocking on the doors of the Government for a rollback of the
GoM’s decision withholding their SEZ notification. Among them, they have
acquired nearly 5,000 hectares of land and Rs 40,000 crore in investment
is sitting idle.

The Commerce Ministry has written to External Affairs Minister Pranab
Mukherjee – who heads the Empowered Group of Ministers – seeking
directions on issuance of notification in these 41 cases spread in nine
states, including Kerala, Uttar Pradesh, Maharashtra, Andhra Pradesh and
Goa. On January 22, the GoM decided on no new SEZ approvals, including
notifications, until it took a final view.

The Commerce Ministry has reminded Mukherjee that of the 236 valid
approvals, 63 SEZs have already been notified. ‘‘In another 41 cases,
the developers have already submitted land details and other documents
as required under the provisions of the SEZ Act 2005 and SEZ Rules,
2006, for issue of notification. The development commissioners have
carried out necessary inspections in these cases. These papers are under
process and draft notifications are being finalised in consultation with
the Law Ministry.’’

The letter goes on to add that because of the GoM’s directions, the
Commerce Ministry cannot issue notifications until the orders are
reversed. ‘‘The developers have expressed concerns over this decision as
they have already taken steps for implementation of their projects.
Number of these have already placed orders, finalised contractors in
anticipation of the notification. All benefits granted under the SEZ Act
become available only from the date of notifications,’’ the Commerce
Ministry has said.

Citing the case of Brandix India Apparel City, a company promoted by a
Sri Lankan promoter with 100% FDI, the Commerce Ministry has informed
the GoM that this company has already recruited and trained 400 rural
women from nearby villages and is ready to commence operation on receipt
of notification.

The Ministry points out that 1,000 acres has already been leased from
the Andhra Pradesh Industrial and Investment Corporation in 2006.
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