Now, One More Sez Wants to Withdraw from Gujarat 0

e-Paper

Indian Premier League 2016

T RENDING# VVIP chopper scam Vijay Mallya IPL 2016 Uttarakhand West Bengal elections 2016

NOW, ONE MORE SEZ WANTS TO WITHDRAW FROM GUJARAT 0

0 0 0

JIT ENDRA DAVE | HIMANSH DHOMSE | Fri, 15 Jul 2011-02:55pm , Ahmedabad , dna

After struggling for four years to develop an engineering special economic zone (SEZ) at Rajoda near Changodar in Ahmedabad district, city-based developer NG Realty has now ﬁnally decided to abandon the plan and de-notify its Gallpos SEZ.

The SEZ had got formal approval in May 2007. Four years on, the company wants to de-notify it and is now planning to convert it into an industrial park. With this, Gallops becomes sixth SEZ to be withdrawn in Gujarat.

After investing Rs350 crore in this project, including Rs100 crore in development and Rs250 crore in acquiring land, NG Realty has sent a request to Board of Approval of SEZs for de-notiﬁcation of its SEZ at Rajoda.

In the request, the ﬁrm has cited unstable SEZ policy and imposition of minimum alternate tax (MAT) as reasons for shelving the project.

The SEZ, spread in around 230 hectares, got notiﬁed over an area of 217.14 hectares. With many ups and downs, the developer was left with no other choice but to de-notify it.

NG Patel, chairman of NG Realty, conﬁrmed that they are mulling to de-notify their engineering SEZ and said that the SEZs are not viable anymore due to change in the government policy.

"The government has withdrawn majority of the beneﬁts and only certain beneﬁts like relaxations in income tax are available. The central government decision of imposing MAT has been a fatal blow to the SEZ," he said. Now, the group will set up an industrial park on demarcated land.

"We will not have to bear major loss as land price appreciation will compensate it," Patel said.

Before applying for the de-notiﬁcation, NG Realty had tried to bring in partners but in vain. First it tried to rope in a Delhi-based company. However, things did not work out so it tied up with Mumbai-based Kalpataru Power Ltd.

Both the times, it was said to be 50:50 joint venture but the deal was not struck. Lately, local company Electrotherm Ltd had shown interest in taking over the project but negotiations failed.

Minister of state for industries, Gujarat government, Saurabh Patel believes that the change in policy by the Centre is unfortunate for Gujarat. "Because of the tax on SEZs, the investors have lost conﬁdence in government and started withdrawing SEZs. Not only the state governments but even central government stand to lose revenue under this policy," he said.

Before Gallops SEZ, five more developers had either de-notified or withdrawn from such projects. Earlier, the proposed SEZs of DLF and Essar had been de-notified and the withdrawal request of Strength Real Estate Private Limited for an IT or ITeS SEZ in Vadodara had been granted.

Three months back, two companies whose withdrawal requests were also granted were Gujarat Hydrocarbons & Power SEZ Limited, and Mexus Corporation.

FROM AROUND THE WEB

Economist Proclaims: "Get Out Want t o See How Celebrit ies 10 Cheapest and Amazing of St ocks Now!" Really Live? See Inside T hese Gadget s You Can Get in 2016 The Sovereign Investor Homes T hat Are Current ly on World List Mt haens Mioan rGkleobtal by Dow Jones

Where t he World's Billionaires T he most addict ive game of 10 Baﬄing BS Myt hs About Live t he year! Play wit h 15 million Being Rich You Shouldn't Mansion Global by Dow Jones Players now! Believe Forge Of Empires Trends Share T his simple sit t ing t est could Top 10 Amazing Wedding Top 10 Cheapest and Awesome predict how long you will live Dest inat ions in t he World | Gadget s You Can Get in 2016 | Mother Nature Network Love and Mind Love and Mind Love and Mind Love and Mind

0 Comments - Join the Discussions

POPULAR

US leads 25 strikes against ISIS in Bihar: Youth tries to ﬂing chappal Serena Williams removes Uttarakhand forest ﬁre reaches Iraq, Syria: Statement towards CM Nitish Kumar at photoshopped picture after boarding school in Himachal 'Janata Darbar' being slammed Pradesh's Kasauli

ALSO READ INDIA Tamil Nadu: Man burns his mother to death f or not getting him married

INDIA Mayawati shrugs oﬀ Rahul or Priyanka Gandhi as challenges f or UP CM post INDIA Kalraj Mishra blames SP and BSP f or 'bad shape of aﬀairs' in UP, says BJP is the only alternative INDIA UN arbitration court rules India should release Italian marine, says Italian f oreign ministry

INDIA West Bengal: 3 CID oﬃcers injured while diﬀusing crude bombs at Malda INDIA Tamil Nadu Elections 2016: Despite hot weather, election rallies continue in f ull swing

IPL 2016

ROYAL CHALLENGERS BANGALORE vs KOLKATA KNIGHT RIDERS Mon, 2 May 2016, 08:00 PM IST

RELATED Gujarat issues ordinance to provide 10% quota f or economically backward

Amid row over Modi's educational qualiﬁcations, report says PM got a ﬁrst class in MA f rom Gujarat University Ahmedabad: 35 Shiv Sena activists detained f or protesting against Rahat Fateh Ali Khan's concert

VIDEO

Watch: This Kargil martyr's daughter has a powerful message against war between India and Pakistan Watch: T his stunning drone 'ballet' at Mt Fuji will leave you amazed!

Watch: Obama literally drops the mic at White House Correspondents Dinner, takes shot at Trump

VIEW ALL