Government has given more time to 211 special economic zone (SEZ) developers during the last three years to execute their projects, Parliament was informed on Wednesday.
The letter of approval granted to SEZ developer is valid for three years within which "effective steps" are to be taken by the developer to implement the approved project.
"The Board of Approval (BoA) may, on an application by the developer, extend the validity period of the letter of approval. In last three years and current year, 224 developers have sought extension of time for the execution of their projects," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha.
"Out of 224 applications, 211 developers have been granted extension of time," she said. The BoA, a 19-member inter-ministerial body headed by Commerce Secretary Rajeev Kher, deals with SEZ related issues. It provides single window clearance mechanism to developers and units in these zones.
The high number of extensions also reflects the losing interest of investors due to reasons including global economic slowdown and imposition of minimum alternate tax (MAT) and dividend distribution tax (DDT) on these zones. So far, 352 such zones have been notified by the BoA out of which 199 are operational.