The Maharashtra government has turned down Centre's proposal to scale down the size of Reliance Industries' Maha Mumbai Special Economic Zone
Notwithstanding the widespread protest against the proliferation of special economic zones in the country, the Ministry of Commerce and Industry is organising a seminar on the tax-free conclaves in Singapore on Wednesday in order to rope in global investors.
Asserting that India had removed many barriers in trade and investment
Despite the special incentives they get, SEZs today comprise under 5% of all fresh investments announced in the country.
The net profit of the listed Adani group companies more than doubled year-on-year (Y-o-Y) in the first half of 2023-24 (H1FY24), even as their revenue declined in this period. The nine firms posted a 107.7 per cent jump in net profit at Rs 23,929 crore in April-September compared to the year-ago period. Net sales, on the other hand, were down 14 per cent to Rs 1.49 trillion in H1FY24, data collated by Business Standard showed.
Even the best of government policies rarely satisfy the corporate sector. So, it is perhaps surprising that the year 2006 saw a scheme over which all business houses -- big and small alike -- were falling head over heels.
The Centre has asked the Maharashtra government to reduce the size of the Reliance Industries-promoted Mahamumbai SEZ as it involves acquisition of over 10,000 hectares of land.
Country's largest gold importer MMTC Ltd has decided to join the SEZ bandwagon by setting up a gems and jewellery park in joint venture with a private player in the tax-free enclave.
The next six months may see the Centre notifying 100 special economic zones.
Moser Baer said on Thursday it has sought an additional 25 acres of land to expand its upcoming special economic zone, which is expected to be operational by the end of this year.
New applicants for Special Economic Zones (SEZ) would have to wait for up to a year before their cases are considered by the Board of Approvals (BoA).
Exports from special economic zones (SEZs) are likely to touch Rs 2 lakh crore in 2009-10, a 100 per cent jump from the year-ago period, with Reliance Industries' Jamnagar special economic zone expected to contribute the most to the kitty.
Prime Minister Manmohan Singh said on Thursday the economy was expected to grow by over nine per cent during 2006-07.
An announcement to this effect could be made in the Budget scheduled to be unveiled by finance minister Pranab Mukherjee in the Lok Sabha on July 6. The decision to permit SEZ developers to raise ECBs, sources said, would promote development of the special economic zones, besides helping the government in arresting decline in the foreign exchange reserves.
All the three tax-free enclaves were given formal approval, which would have lapsed by end of this month. While the ministry granted extension of time 'on file', the decision has to be ratified by the inter-ministerial Board of Approval which is meeting here on June 17.
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.
He urged China to bolster the flow of its tourists to the Maldives.
The board of approval, headed by commerce secretary G K Pillai, will also consider requests from realty major DLF for de-notification of its IT-ITeS SEZs in Gujarat, Haryana, West Bengal and Orissa. Larsen and Toubro has proposed to set up an IT SEZ in Mumbai, while Gulf Oil Corporation has moved application for a similar tax-free zone in Bangalore.
Punjab government has approved Anil Ambani Group's Rs 5,000-crore (Rs 50 billion) multi-product special economic zone in the state.
Mumbai-based Zoom Developers, engaged in diversified businesses including real estate, plans to invest Rs 1,000 crore (Rs 10 billion) in the next three years to construct a 100 hectare IT-ITeS special economic zone at Indore.
Reeling under a cash crunch, the country's largest real estate player, DLF, has approached the government on surrendering its (DLF's) five of the nine IT-ITeS notified special economic zones (SEZ).
Real estate and hotels major Royal Palms will invest around Rs 600 crore (Rs 6 billion) to set up an IT/ITeS special economic zone in Mumbai that would be ready for occupation by end of next year.
However, the central bank is yet to implement the government directive, which was issued after a decision of the empowered Group of Ministers, director general of the export promotion council for EOUs and SEZs L B Singhal said at an Assocham function in Chennai.
Outward shipments from the government-owned SEZ in Kandla, Santacruz, Noida, Madras, Cochin, Falta and Vishakhapatnam grew by 16 per cent to Rs 45,777 crore (Rs 457.77 billion) in the last fiscal from Rs 39,275 crore (Rs 392.75 billion) in the previous year, the outcome Budget of the ministry of commerce said.
However, the board of approval in the commerce ministry asked the DLF to return all the tax sops it had taken from the Centre before its SEZs in Gujarat, West Bengal, Orissa and Haryana could be denotified. The BoA, headed by commerce secretary G K Pillai, also allowed more time to the K Raheja group to build its tax-free zones in Goa, Hyderabad and Navi Mumbai, an official said.
The government has issued fresh guidelines allowing a power plant the fiscal exemptions of the Special Economic Zone if it is set up in the 'processing' area of the tax-free zone.
Even as banks and finance companies are reporting record-high earnings, their weighting in the benchmark National Stock Exchange Nifty50 Index has seen a downward trajectory. Investors expect a stronger performance from other sectors in the new year. Currently, banking, financial services and insurance (BFSI) companies collectively hold a weighting of 34.5 per cent, down from 36.7 per cent at the end of December 2022 and a record high of 40.6 per cent at the end of December 2019. This represents the sector's lowest weighting in the index since December 2021 when it stood at 33.7 per cent.
The government will come up with a legislation, which will have a fiscal package, including a 20-year income tax holiday for special economic zones, by December end, a top government official said on Tuesday.
TCS is also seeking more time for setting up a unit in Mihan special economic zone at Nagpur in Maharashtra.
Infosys Technologies plans to set up five SEZ in Tier II cities -- Mysore, Bangalore and Thiruvananthapuram.
The eGoM, headed by External Affairs Minister Pranab Mukherjee, is likely to take up issues including demand from developers to revise the 5,000 hectare land ceiling for one SEZ.
Shares of real estate firms have been outperforming over the past year. The rally, analysts say, may hit roadblocks in the near term amid stretched valuations, even as the long-term prospects for the sector remain ebullient. "Most of the positive news flow is already in the price. Hence, investors sitting on hefty profits may partially cash out at current levels," suggests V K Vijayakumar, chief investment strategist at Geojit Financial Services.
Farmers will finally have a right to decide if their land can be acquired or not for special economic zones in Maharashtra.
The finance ministry on Monday defended the budget proposal on a sun set clause for tax sops to special economic zones, saying it is a normal practice in any kind of fiscal concessions.
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