Commerce Ministry Findings Show Developers Do Not Set Up SEZs

Maharashtra, Karnataka, Gujarat, Andhra Pradesh, Kerala and Karnataka are the states with the maximum number of operational SEZs. A recent finding by the Commerce Ministry shows that developers across India allotted land on preferential basis for setting up of SEZs fail to do so in a majority of the cases and hold on to the land simply with a profit motive.

The dichotomy between State and Centre policies tends to discourage builders from development work. While they receive concessions from the Centre, the states are not so obliging. There is no political mileage for governments in developing or promoting SEZs. There is a framework to take action for delay in starting work but the fact cannot be denied that SEZs are not actually mushrooming all over the place as expected. In fact, some builders are even surrendering land or asking for extensions. 

Andhra Pradesh Industrial Infrastructure Corporation, Enfield Exports, Raheja SEZ, Posco India are those who have sought extension. Maharashtra Industrial Development Corporation has applied to surrender its project. Government apathy is an obvious reason with general slowdown and lukewarm interest from real estate developers being the others. Apparently, SEZs in India have a covert thumbs down, in marked contrast to the tremendous growth in China.