CAG: SEZ investments worth Rs 400-cr in limbo in Tamil Nadu
According to a report tabled by the Comptroller and Auditor General of India in the Assembly last week, SEZ investments worth nearly Rs 400 crore are in limbo in Tamil Nadu because the investments were made without proper planning.
As per the CAG report on public sector undertakings for 2012-13, the Rs 400-crore SEZ investments which are lying idle in Tamil Nadu were made in eight SEZ projects in the state. However, the amount was invested without any proper planning or the requisite ground work in small towns and cities.
The report has revealed that the SEZs which were set up by the Electronics Corporation of Tamil Nadu at different locations in the State failed to attract adequate investments. As a result, the occupancy in these SEZ projects ranges between 6 percent and 42 percent.
With regard to the issues which have left Rs 400-crore worth of SEZ investment in limbo in Tamil Nadu, the CAG report highlighted the fact that the projects were apparently executed without feasibility studies and proper assessment of market potential. In addition, the locations at which the SEZ projects were set up were also not appropriate.
Specifically, the CAG report has revealed that while no feasibility studies were carried out for the SEZs in Madurai, Salem and Tirunelveli in South Tamil Nadu; feasibility study conducted for the Tiruchi SEZ project had indicated the city was not an ideal IT location.
Source – The Hindu Business Line
