The Rs 56,000-crore (Rs 560 billion) Adani Group on Monday received a major blow from the Gujarat High Court, which ordered a shutdown of 12 units in Adani Ports and Special Economic Zone (APSEZ), located in Mundra, Kutch district, with immediate effect.
Out of 389 SEZs notified, 170 are operational, Export Promotion Council for export-oriented units and special economic zones (EPCES) said in a statement.
Also considered as a green initiative, it would help the units reduce transaction cost and time.
On Thursday, Adani Enterprises announced that it will not go ahead with acquiring Macquarie group's two road companies at an enterprise valuation of Rs 3,100 crore.
The applications for seeking withdrawal of approvals and extension of validity of clearances will be considered by the board of approvals in the commerce ministry in its meeting on October 5. Those seeking extension of time include Mumbai SEZ, promoted by Reliance Industries' Chairman Mukesh Ambani and his close aide Anand Jain, Gitanjali Gems, Jubliant Infrastructure and L&T Hitech City, an official said.
In another instance, a foreign partner of a notified SEZ had already procured equipment abroad for setting up the units but could not send them to India as all proposals were put on hold.
Questions over proposed changes in land use are piling up, even as the commerce ministry and Maharashtra government are rushing to give in-principle approvals and conditional no-objection certificates to special economic zone developers.
Finance Minister has proposed to levy MAT of 18.5 per cent on the book profits of Special Economic Zone developers and units.
The Bill was introduced in the Legislature in April this year, but despite being listed on the agenda during the recently concluded Monsoon Session, it could not be taken up for discussion.
The two countries have already formed a Steering Committee to carry forward the proposals, one of which relate to setting up a 2,500-acre multi-product SEZ in the south.
The much-awaited policy for mandatory rehabilitation of land owners displaced by industrial projects and SEZs might get delayed with the matter being referred to a Group of Ministers.
"It has been two years since the Special Economic Zone Act and rules came into effect. While exports have grown almost 100 per cent to touch Rs 40,000 crore (Rs 400 billion) in the first nine months of the current fiscal, total incremental employment generated by the operational SEZs after February 2006 is 146,128," according to the Export Promotion Council for EOUs and SEZ.
As the president of Assocham, Dhoot has asked Confederation of Indian Industry and Ficci to join him in requesting the prime minister to reconsider the move to ban states from acquiring land.
Already under fire from all quarters over special economic zones, an important parliamentary committee has firmed up its strong opposition over acquisition of farm land.
The Special Economic Zone concept represents another form of "Zamindari" system, Kali Ghosh, general secretary, CITU West Bengal Committee, said on Monday.
Batting for the Reserve Bank of India and the finance ministry, the Planning Commission on Friday said concessions to special economic zones should be at par with those provided to infrastructure projects.\n\n
Within a fortnight of Commerce Secretary G K Pillai talking about a possible relaxation of cap on land size for SEZs, Commerce and Industry Minister Kamal Nath said on Tuesday there was no proposal to change the 5,000 hectare ceiling prescribed by a group of ministers. However, the Centre would look at specific proposals from states once the Resettlment and Rehabilitation Policy is implemented, he said.
Dr Reddy's Laboratories, the second largest drug maker in the country, would invest about Rs 750 crore.
The Tamil Nadu government on Friday signed a memorandum of understanding (MoU) with Hyderabad-based GVK Group to set up a Rs 1,500-crore (Rs 15 billion) multi-products special economic zone in 3,000 acres in Perambalur district.
The government had imposed Minimum Alternative Tax and Dividend Distribution Tax on SEZs in 2010-11, which were earlier exempted from almost all levies.
Sources familiar with the project said the SPV's promoters were looking at raising the additional capital to acquire up to 250 acres at Thane to complete the first phase of the SEZ project, for which IL&FS is an advisor. Inox Infrastructure Private Limited, a wholly-owned subsidiary of Gujarat Fluorochemicals Ltd, holds 50 per cent stake in Megnasolace.
Special economic zones dedicated to the infotech sector may receive a body blow if the tax exemptions provided to Software Technology Parks of India under Section 10(A) and 10(B) of the Income Tax Act are extended beyond March 31, 2009. According to a senior central government official, not more than half of the nearly 100 notified infotech SEZs will survive if the tax sops are extended.
VSNL intends to set up the unit through its wholly owned subsidiary, VSNL Global Services.
The government will not stop companies from filing fresh applications seeking permission to set up special economic zones. However, it will not process any fresh applications until it clears the backlog of over 360 pending proposals.
West Bengal government puts on hold all special economic zones in the state until a 'socially balanced' decision is taken in this regard.
Fresh notifications and approvals for setting up Special Economic Zones are being put on hold till an Empowered Group of Ministers looking into the matter takes a final view, Rajya Sabha was informed on Wednesday.
Amidst controversies, global IT giant Hewlett Packard has decided to drop its plans for a Special Economic Zone in Bangalore
The meeting of the empowered group of ministers on special economic zones could not reach any firm view on on Monday while the government will take the rehabilitation policy to the Cabinet next month.
Special economic zones may have got the green signal from the group of ministers, but it is now being termed as unconstitutional.
Currently, the spend on R&D as a percentage of GDP is just 0.9%
The Torrent Group company is aiming at over 20 per cent equity in the Dahej SEZ which also has a Rs 13,500 crore (Rs 135 billion) integrated petrochemical complex coming up in south Gujarat.
The IT and IT-enabled services companies will be provided space in the proposed SEZ. The proposal awaits final approval from the Board of Approval. SIDCUL has been appointed the nodal agency for the proposed IT SEZ which would invite Expression of Interests from top reputed companies. The sources said top IT multinational companies like Infosys could be invited for the development of the IT SEZ, which is being set up over 14.2 hectares.
ICICI Bank has opened a branch in Jhajjar district of Haryana to advise farmers how to reinvest the huge cash they are receiving on sale of land to Reliance Industries for its SEZ in the area.
Reliance Industries Ltd on Friday reported a 9 per cent rise in its December quarter net profit as a planned maintenance-induced weakness in oil business earnings was offset by stability in retail and telecom verticals. The oil-to-retail-to-telecom conglomerate's consolidated net profit of Rs 17,265 crore, or Rs 25.52 per share, in October-December - the third quarter of the current 2023-24 fiscal - was 9.3 per cent higher than Rs 15,792 crore, or Rs 23.19 a share, earning a year back, according to a company statement. Quarter-on-quarter, the profit was lower when compared to Rs 17,394 crore earnings in the preceding three months ended September 30.
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