Despite a contraction in world trade, exports from India’s special economic zones (SEZs) have maintained the high growth levels of the pre-crisis period. Commerce ministry data shows SEZ exports more than doubled in the first half of this fiscal, when the country’s total exports dipped 18.6%. After the 2006-07 implementation of the SEZ policy, exports from these tax-free zones have increased by over 50% annually.

“SEZ exports stood at Rs 1,01,265 crore in April-September this year as against over Rs 48,000 crore in the corresponding period a year ago. This clearly shows that export growth this year would be significantly higher than the initial estimate of 15%,” said DK Mittal, additional secretary, department of commerce. Total exports were at Rs 3,78,196 crore in H1.

However, with access to liquidity getting squeezed and land acquisition proving a problem certain developers are having a rethink on their SEZ plans. The board of approval (BoA) that met under the chairmanship of commerce secretary Rahul Khullar allowed 10 developers to exit.

The proposed 5,000-hectare Maha Mumbai SEZ is among the projects facing problems over land acquisition. The BoA asked developers—RIL chairman Mukesh Ambani and his associate Anand Jain have stakes in the zone—to re-apply through the state government.

Gujarat Positra Port Infrastructure Ltd, which is developing the zone, had asked for an extension of its ‘in principal approval’ status as it is yet to complete its land acquisition. “They will have to fill in the relevant forms and take approval from the state government,” Mittal said. According to the original proposal, the Maha Mumbai SEZ was to be a 10,000-hectare zone. ‘Steps have also been taken to acquire land by consent of landowners and the developer has been able to execute agreement for sale with payment of full consideration with the permission of state government to the extent of Rs 4,800 crore,’ Gujarat Positra had said in its application to the BoA, which had already extended the in-principle status twice.

Going by the latest figures, SEZ exports account for nearly 26 % of the Indian exports basket. Exports form Reliance Industry Ltd’s SEZ-based refinery in Jamnagar accounts for a substantial portion of the rise in exports from these tax-free industrial zones. At the moment, there are 725 SEZs under different categories of approval, where investments of Rs 1,25,950 crore have taken place in the past three years.

Source: http://www.indianrealtynews.com

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