The Maharashtra Industrial Development Corporation, MIDC, the state's nodal agency creating infrastructure for industry, had applied for permission to set up 30 SEZs, when the policy was first announced. Over four years later, with changes in the tax structure governing SEZs having made them unattractive as investment destinations, the MIDC is asking for permission that 24 of its proposed 30 SEZs should be cancelled.
A senior MIDC official, requesting anonymity, said they had proposed these 30 SEZs in three models, with a majority 16 where MIDC was the sole developer. The other two models were in a public private partnership, where it had seven SEZs, and another seven in joint ventures.
"Of the 16 where MIDC was the sole developer, two are already operational, one at Hinjewadi near Pune and another at Shendra, near Aurangabad. Two more, one at Phaltan and another at Kesrudi-Khandala, will be operational in another six months," the official said. The MIDC's requests for cancellation of the balance 12 SEZs is at varying stages, he added.
The Hinjewadi
SEZ is in Phase III of the IT Park while the Phaltan SEZ has an anchor tenant, Cummins India. Indications are that Cummins India is looking for more land in the 100 hectare SEZ, expanding its presence there while the 110 ha Kesurdi Khandala SEZ already has one tenant, Helvoet. The Phaltan, Kesurdi Khandala and Shendra SEZs are for the engineering sector while the Hinjewadi SEZ is earmarked for the IT sector.
"We had adopted three models for SEZ development, with 16 in which we were developers, seven were in a PPP mode while another seven were in joint ventures. Barring two JVs, one with Indiabulls, which has scaled back its SEZ to 1100 ha and Bharat Forge which has retained its intention of a 4500 ha SEZ, the others have all called off their plans. So also the SEZs that were to come up in the PPP model, all seven are seeking or have received permission for cancellation," the official noted.
The SEZs which MIDC was itself going to develop were of 100 hectare or more while one in the PPP model was for 1,000 ha. Land acquisition was also proving to be difficult, one early reason for MIDC's partners wanting to exit the business.
Source : economictimes.indiatimes.com