Navi Mumbai SEZ Ltd, promoted by Reliance Industries chief Mukesh Ambani and his associate Anand Jain, has sought a sixth extension of formal approvals for three of its IT/ITES special economic zones (SEZ) in Ulwe, Maharashtra.
The developers claim that it was non-enactment of the new SEZ policy by the Maharashtra government that was leading to a delay in the projects taking-off. The projects were first approved in October 2007.
Clarity sought“The SEZ is developed and ready for the prospective units. However, potential investors are waiting for clarity from government of Maharashtra about the new SEZ Policy,” as per separate submissions from Navi Mumbai SEZ for the three zones.
The proposal will be considered by the Board of Approval for SEZs – the decision making body for SEZs comprising officials from various Ministries including commerce, finance and home – at its meeting on December 30.
The development commissioner of the area, in his report, has proposed a one year extension for all three zones. The fifth formal approval for the zones lapsed in October 2015.
In the submission, the developers pointed out that for all three SEZs, physical infrastructure was already under construction. The developers have asked for extension of formal approval for implementation of the project.
In the absence of an extension, the three zones will lose the SEZ tag and associated benefits and a fresh application would have to be made to re-gain the status.
The developers have also said that the imposition of minimum alternate tax and dividend distribution tax on SEZ developers & units have had a direct detrimental impact on setting up units in a SEZ.
Navi Mumbai SEZ’s ambitious multi-product zone proposed to be set up at Dronagiri, Maharashtra, also has been facing a tough time.
The BoA, in August, had given a six-month extension to the project, despite the development commissioner of the zone not recommending it.
The extension, which lapses on January 29, 2016, was given under the condition that the developer shall submit a clear-cut development plan and action plan of the SEZ and approval of the Maharashtra government within that time-frame.