For the business biggies, nothing was perhaps hotter than a SEZ investment proposition at the start of 2008, though towards the end of the year, the queues of Special Economic Zone-seekers had virtually vanished, with promoters finding few takers of units in their special zones.
The extent of disillusionment can be gauged from the fact that even tax sops for units in the SEZs could not help revive the dampening spirit.
The year has seen a change in the sentiment, which has turned for the worse in the last three-four months. Scores of big corporate houses were making a beeline for developing Special Economic Zones, billed as the new investment destination that assured tax-free income.
But as the tumultuous year comes to a close, investors’ frenzy has given way to withdrawal symptoms, though well over 270 tax-free havens have been notified by the government.
Be it DLF, Parsvnath or the Rahejas, initially most of the reality players saw a great opportunity in SEZs. However, with the deteriorating investment climate and real estate majors wanting to cash in on the SEZ boom seem to be developing cold feet on the once-hot proposition.
In fact, DLF has officially approached the Commerce Ministry for de-notification of one of its information technology SEZs to be located at a prime land in the national capital.