SEZ approvals of Hindalco, Essar, Adani might be cancelled by the government
Government is likely to cancel the approvals granted by it to nine companies including Hindalco Industries, Essar and Adani. This approval was given to these companies for setting up of special economic zones (SEZ); however no work has been done to execute the projects.
The Development Commissioners (DC) have recommended to the Board of Approval (BoA) to cancel these SEZ projects. The formal approval had been granted to these projects by BoA earlier. However the good news is that Hindalco Industries has proposed to set up an aluminium product SEZ in Orissa. Essar Jamnagar SEZ Ltd had proposed to set up a multi- product zone in Gujarat.
The formal approval expired in August 2009. BoA also mentioned that the developer did not make any request for extension. The DC had taken up the matter with the developer but no communication has been received.
Similarly, Adani Townships & Real Estate Company Ltd had proposed an IT/ITeS zone in Gujarat. The formal approval expired on 11.06.2010. The developer has reported that they could not proceed with the SEZ project due to adverse demand scenario from the IT sector.
Due to the slowdown of the global economy, the expansion plans for IT and ITeS (IT Enabled Services)companies were put on hold for the last few years and hence there were no takers for these SEZs.
Source- The Hindu Business Line
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