New SEZs in poll-bound AP, Karna deferred

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The Centre on Friday deferred its decision on proposals to set up special economic zones in Andhra Pradesh and Karnataka as the states are in the midst of polls and clearance to such tax-free enclaves or any scheme regarding such states would amount to a violation of the Election Commission’s code of conduct.

The commerce ministry is learnt to have received a communiqué to this effect from the Election Commission.

“If SEZ proposals come up before the board of approval (for SEZs in the commerce ministry) during elections, it is a standard practice to defer it. Any approval for SEZs, when the polls are in progress, is likely to be interpreted as a kind of a sop. In the case of bye-elections too, the SEZ proposals from that area are deferred,” an official said.

There were nine proposals from Andhra Pradesh and one proposal from Karnataka on the Board’s agenda on Friday. The second phase of Assembly elections began in Karnataka, while by-elections are being held largely in Andhra Pradesh’s Telangana region.

Officials said the BoA followed this practice right from its first meeting on March 17, 2006. They said though the BoA considered proposals from Tamil Nadu and West Bengal at that time, and even cleared some of them, the decisions were announced only after the polls in those states. Similarly, though the SEZ proposals from Gujarat , including that of Mundra SEZ and Pipavav port-based SEZ, were cleared in November last year, the decision was announced in December-end only after the polls were over.

The BoA, however, cleared five proposals including Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC) in Visakhapatnam , Andhra Pradesh for an IT/ITES SEZ of 20.23 hectares as the region does not have by-election.

The other SEZs that got the green signal Primrose Buildworth Private Limited in Nuh, Haryana, Airmid Developers Limited in Gurgaon, Progressive Buildestate Pvt. Ltd. in Gurgaon for for IT/ITES SEZs.

The other proposals from Andhra included seven SEZs proposed by Deccan Infrastructure and Land Holdings Ltd which wanted to set up product-specific SEZs ranging from pharmaceuticals to textile and apparels, agriculture and livestock products, bio-technology, gems and jewellery.