Once seen as very powerful economic tool for catalyzing the growth process during restructure and liberalization of economy, Special Economic Zones (SEZs) in India could not replicate the Chinese success story, as assumed. Track2Realty takes a look on the future of SEZs in India as realtors make a beeline to exit or extend the tax haven, and the Government groping for fresh ideas.
A Parliamentary panel has castigated the government for not establishing industries in almost half the SEZs set up since 2006 and giving the land to realtors, diverting fertile land of farmers.
Realty major DLF on Wednesday, Dec 28, announced sale of its information technology special economic zone (IT SEZ) in Pune to Blackstone Group.
Several realty firms, including Parsvnath, Juventus Builders and Developers, Alok Infrastructure, Oval Developers, Airmid Developers and NG Realty have sought the Government’s nod to shelve their SEZ projects amid continued tax uncertainties.
Hindustan Unilever (HUL) is reportedly trying to redevelop its landmark Brookfields Property in Whitefield, Bangalore.
Hindustan Unilever, India’s largest consumer goods company by revenue, is considering to either lease or co-develop its Bangalore IT Special Economic Zone (SEZ) project in a bid to unlock shareholder value.
Private equity giant Blackstone will finance south-based Embassy Property Development’s purchase of 22% stake in Manyata Tech Park, the country’s largest operational tech SEZ.
India has 105 operational (21,214 hectares) and another 631 Special Economic Zones (SEZs) under various stages of approval (see DTZ report on ‘SEZs in India’ June 2010). These zones are the only tax havens in India after the likely expiry of STPI/EOU scheme in March 2011 and have seen healthy interest from occupiers as well as developers. The new Direct Taxes Code (DTC 2010) bill, proposes to alter the tax framework of SEZs.
Naturally, the IT industry is not comfortable with seeing the STPI scheme go. It was slated for expiry in 2009, but the industry managed to wangle two extensions for it. The Government has provided an alternative in the form of Special Economic Zones.
Spanning 5.35 acres, the project offers 676 residential units in spacious 2 and 3-bedroom configurations spanning four towers. The size of 2 BHK units ranges from 993 sq. ft. to 1,107 sq. ft., and 3 BHK units between 1,309 sq. ft. and 1,424 sq. ft. Homes in Provident Bayscape are vaastucompliant and feature several design aspects unique to Chennai residents’ needs, including designated‘Kolam’ area, dedicated ‘puja’ space, and a separate handwash area.