Company may take up the project after six months to one year
SEZ developers in India seems to have turned cautious in implementing their projects after global economic crisis. SPG Infrastructure Pvt Ltd, a Siyaram Poddar Group company, has decided to defer its
SEZ project in Kutch by six months to one year.
SPG Infrastructure had planned to set up a sector specific SEZ for transport engineering goods including manufacture of tyres and tubes at Bhuj of Kutch district in Gujarat. As per the memorandum of understanding (MoU) signed with the state government during Vibrant Gujarat Global Investor Summit in 2009, the company was to invest Rs. 865 crore for the project. The SEZ was expected to draw investments to the tune of Rs 5,000 crore, said state government sources privy to the development.
Last month, the company approached Board of Approval for SEZ asking the government body to withdraw in-principal approval granted to it for developing this SEZ. The BOA for SEZ approved company's proposal.
When contacted, Rajiv Poddar, director, SPG Infrastructure, said, "The project has been deferred by six months to one year's time. The export market has slowed down due to financial meltdown and the auto industry is also facing pressures.Considering this, the company chose to put the project on hold for some time".
"There was no point in keeping in-principal approval for the SEZ. We will approach BOA for SEZ again with fresh proposal when we are ready to implement the project", he added.
Essar Steel may also scrap its proposed steel SEZ at Hazira in the wake of decline in demand of steel in overseas market. Another steel giant Welspun Gujarat Stahl Rohren is considering shifting its existing unit outside the engineering SEZ at Anjar in Gujarat.Gujarat Growth Centre Development Corporation is also not going ahead with its SEZ for handicraft and artisan.
The in-principal approval granted to the company has been withdrawn by the government. Now the company is looking at modifying the SEZ project to make it commercial viable.
Gujarat Industrial Development Corporation (GIDC) has sought extension of the validity of formal approval for apparel sector SEZ at Ahmedabad and IT/ITES SEZ at Gandhinagar. Jubilant Infrastructure has also sought the same extension for its chemical SEZ in Bharuch.
Source : Business Standard