Centre to ‘go slow’ on IT SEZs
May consider ceiling on maximum land area for multi-product zones
Special Correspondent
NEW DELHI: The Union Govern-
ment has decided to ‘go slow’
in approving special econom-
ic zones for the IT sector and
may consider imposing a ceil-
ing on the maximum land ar-
ea that can be acquired for
multi-product zones. It is not
in favour of amendments to
the SEZ Act as demanded by
the Left parties which have
pitched for a cap on IT SEZs.
Virtually slipping into the
‘wait and watch mode’, the
Board of Approval in the
Commerce Ministry would
no longer give in-principle
clearance to IT SEZs, al-
though it would continue giv-
ing formal nod to developers
who have acquired the re-
quired land and meet other
criteria.
Spelling out the Govern-
ment’s position at a seminar
organised by the Associated
Chambers of Commerce and
Industry of India (Assocham)
on Wednesday, Commerce
ROOM FOR DEBATE: G. K. Pillai (right), Commerce Secretary, with D. Raja, Secretary G. K. Pillai said:
Secretary, National Council, CPI, at a seminar in New Delhi on Wednesday. “The Left parties had de-
— PHOTO: KAMAL NARANG manded a cap on IT SEZs. We
● 148 IT SEZs formally
cleared so far
● In-principle nod
to 70 more
are not putting a cap, but the
BoA has decided not to give
more in-principle approvals.
We will go slow for the time
being.”
Mr. Pillai, who heads the
BoA, said so far the board had
given formal clearance to 148
IT SEZs and in-principle nod
to about 70 more. While
most of these zones would be
spread over ten hectares,
which is the minimum area
required, some zones were
being set up over an area of as
much as 100 hectares.
“We are possibly reaching
a limit (on IT SEZs)... we
need to debate that. More-
over, all these zones may not
come up, about 25 per cent
may drop out,’’ he said re-
ferring to the case of Hew-
lett-Packard, which recently
surrendered its formal ap-
proval for an IT zone in Ban-
galore.