Private firms put SEZ plans on hold

In view of the economic slowdown, the credit-crunched private firms have put on hold their plans for setting up special economic zones in the national capital.

At a recent meeting with Delhi chief secretary Rakesh Mehta besides other Industries department officials, private developers like DLF Commercial Developers Ltd and Consolidate Finvest and Holdings Ltd expressed their inability to invest in the project.

"All the private developers who were keen to set up the special zones were not keen to invest at this time, citing financial crunch," Mehta told PTI.

He said that only two projects of the state government's own Delhi State Industrial and Infrastructure Development Corporation have been given approval for development of IT park and gems and jewels SEZ.

The DSIIDC SEZ projects will now be reveiwed by the commerce ministry for final approval, Mehta added.

Since the notification of the Delhi SEZ policy in February, the state government had received eight proposals from the developers with some of them even identifying the location for their projects.

While Sweet Home Estate Pvt Ltd has identified land in Vasant Kunj, both Sumit Apartments and Consolidate Finvest and Holdings Ltd planned SEZ in Nazafgarh and DLF Commercial Developers Ltd in Jasola.

The projects relate to information technology-enabled services, electronic hardware and software, nanotechnology, biotechnology, gems and jewellery.

As per SEZ policy endorsed by Delhi Cabinet in 2006, no polluting industries will be allowed to be set up inside SEZs and environmental clearance will be a must for all projects except those dealing with ITES.

Transactions within the SEZ will be exempted from the state and local taxes. No stamp duty will be charged on lease/licence deed regarding the land or built up space.