At a recent meeting, the Board of Approval (BoA), headed by commerce secretary SR Rao, gave more time to 14 SEZ developers to execute their projects and also allowed three SEZ developers to surrender their projects.
The BoA is a 19-member inter-ministerial body that deals with SEZ-related issues. It has extended the validity of the formal approval to the requests for extensions beyond the fifth year for a period of one year and those beyond sixth year for a six months from the date of expiry of the last extension.
The board has given one more year to Parsvnath SEZ for setting up sector-specific SEZ for Biotech in Andhra Pradesh. Parsvnath's project was notified on December 20, 2011. The developer had been granted two extensions, the validity of which was up to August 2012.
Besides, the BoA has given formal approval to UP Electronics Corporation to set up an IT SEZ in Lucknow, which would come up over an area of 40 hectare.
The board advised the development commissioners to recommend the requests for extension of formal approval beyond the fifth year and onwards only after satisfying that the developer has taken sufficient steps towards operationalisation of the project and further extension is based on justifiable reasons. The board also observed that extensions may not be granted as a matter of routine unless some progress has been made on ground by the developers, said the minutes of the latest meeting of BoA held on March 15.
SEZ units are eligible for 100% tax exemption for first five years and 50% for the next five.