Wipro seeks contiguity relaxation for SEZ in Kolkata

IT major Wipro Technologies has asked the government to waive the contiguity norm for its IT/ITES Special Economic Zone (SEZ) in Salt Lake, Kolkata, which it wants to expand.

The norm was framed to protect government revenues by ensuring that SEZ land is contiguous and not broken in places by public roads or other infrastructure, thereby limiting opportunities for smuggling.

The Board of Approval for SEZs will take up Wipro’s proposal at its meeting on October 9. It will also take up one request to set up a new zone and nine proposals for extension of the validity period of approvals and permits for various SEZ developers and units.

“Wipro SEZ has proposed that since the land that it seeks to add to its IT/ITES zone in Salt Lake is not contiguous, it would put up a tamper-proof surveillance system to ensure unauthorised activities such as smuggling in and out of the zones does not happen,” an official said.

Contiguity is one of the primary requirements for setting up of SEZs as there are chances of revenue leakages for the government if there is no continuity between the land parcels on which an SEZ is set up.

A number of proposals, including Mukesh Ambani’s ambitious proposal for a multi-product SEZ in Navi Mumbai, have not yet been cleared as these have not managed to satisfy the government on the contiguity front.

In its proposal to the government, Wipro said that since the capacity at its IT/ITES SEZ established in 2004 has reached optimum level, it intended to add another 2.65 acres to the zone.

Since the land is not contiguous, the developer has proposed a 24x7 digital surveillance system in addition to the presence of physical security at the site as a tamper-proof solution, and round-the-clock monitoring by authorised officers/specified officers with date-wise retrievability of recordings.

The developer has also assured the government that both parcels of land would be adequately fenced.

“Since there is no provision for establishing contiguity by installing a 24x7 digital surveillance system in the SEZ Rules, it has been decided to place the matter before the BoA,” the official added.

The BoA, which is headed by the Commerce Secretary and includes officials from a number of ministries and departments, including Finance and Home, will also consider a proposal for the setting up of a footwear SEZ in Tamil Nadu by Cheyyar SEZ developers.

The proposals for extension of formal approvals and letters of permission are from developers and units across sectors and states, including JBF Petrochemicals in Mangaluru, Benzochem in Gujarat, and Mylan’s pharmaceutical unit in Indore.