The commerce ministry will shortly send a second set of notices to 57 formally approved special economic zones (SEZs) that have land in their possession but are yet to be notified.

Formally approved zones have to get notified before they become eligible for tax sops under the SEZ Act, 2005.

"We constantly monitor upcoming SEZs. A couple of months ago, we had sent similar notices to the zones. If we do not get a reply this time, the zones will be cancelled. SEZs cannot sit on formal approvals," clarified a commerce ministry official.

The zones that have been sent notices were formally approved before April 2007. "The SEZs that got formal approvals later than that are being given time to complete the notification process," said an official.

According to the SEZ rules, a developer, after getting formal approval, has to notify the zone to get the tax sops. The process involves a certificate from the land revenue department stating that the land area is free from encumbrances as well as physical inspection of the site by a development commissioner of the SEZ.

As of now, there is no prescribed time limit for the process. "Usually, the time taken is between six and nine months," said an official. A total of 187 zones have been notified.

Commerce ministry officials estimate only 50 of the 167 zones approved in principle will see the light of the day due to problems over land acquisition.