SEZ Developments Face Cancellations Amid Shifting Demands

Seven developers, including Kerala State Information Technology Infrastructure, are seeking full or partial SEZ cancellations due to decreased demand. The BoA, led by the Commerce Secretary, will decide on November 8. The sectors affected include IT/ITeS, apparel, and pharma, reflecting a shifting economic landscape.

Developers, including the Kerala State Information Technology Infrastructure, are lobbying the government to cancel several special economic zones (SEZs). A total of seven developers have applied for full or partial denotification of their SEZs, with a decision pending from the inter-ministerial Board of Approval (BoA) on November 8.

Among the seven proposed denotifications, four zones pertain to the IT/ITeS sector. Kerala's developer, KSITIL, has requested the de-notification of its IT/ITeS zones, citing a lack of demand for SEZ space. The land is expected to be transferred to the Industries Department for the creation of an industrial park.

Other notable applications include Arshiya Ltd's request for denotification of its FTWZ in Nagpur and Qubix Business Park's partial denotification of its IT/ITeS area at Pune. Developers report reduced demand for SEZ space amid changing economic conditions.

(With inputs from agencies.)