NEW DELHI: The government will consider several proposals tomorrow for withdrawal of special economic zones approvals as the promoters have developed cold feet due to slump in demand for commercial space.
The Board of approval in the commerce ministry will also take up the application of Mukesh Ambani promoted Mumbai
SEZ seeking third extension for validity of its principal approval in 2006.
As many as 10 promoters want to pull out of the SEZ projects which included development of lakhs of square feet of commercial space in different states mostly in Maharashtra, Tamil Nadu and Punjab.
Promoters who want to pull out of projects in the wake of the slow down for commercial space include Gremach Infrastructure Equipments for its proposed project at Kolhapur, ETL Infrastructure Services' project at Kancheepuram in Tamil Nadu and Maharashtra Industrial Development
Besides, BoA would also take up two fresh SEZ proposals including from Larsen and Toubro. Due to the global recession demand for commercial space saw huge erosion. A total of 579 SEZs have been approved and 335 of them have been notified.
The SEZs have attracted an investment of over Rs 1.10 lakh crore and exports from the units were valued at around Rs 100,000 crore in 2008-09.
Meanwhile, real estate consultant CBRE said India will add up to 40 million sq ft of office space this year, which will be higher than many other advanced countries.
Source : TOI