DLF asks government to denotify four SEZs (Lead)

April 17th, 2009 - 7:13 pm ICT by IANS  

New Delhi, April 17 (IANS) Hit by severe cash crunch, realty major DLF has requested the central government to denotify four special economic zone (SEZ) projects that were allotted to it.
These four SEZs are IT and IT enabled Services (ITeS) projects, the company said in a statement Friday.

Currently, DLF has been allotted nine IT/ITeS SEZ projects in different parts of the country.

Earlier, there were reports that the company, unable to raise funds to develop the projects, had asked the government to denotify five projects.

The company initially rejected the reports, but the clarification came Friday after the National Stock Exchange (NSE) sought information regarding this to safeguard the interests of investors.

“DLF has clarified to the BSE (Bombay Stock Exchange) that the company has requested the ministry of commerce and industry for de-notification of four IT/ITES SEZs,” the statement said.

Earlier this week Commerce Secretary G.K. Pillai, who also heads the inter-ministerial Board of Approval, which clears the proposals for setting up SEZs, had said some companies had asked for extension of time for developing SEZs as they were finding difficulty in raising money.

Developers Parsvnath, Emaar MGF and Rahejas are also facing the heat of the financial crisis, and have sought extension of deadline.

“We understand that in the current situation raising money is difficult, but so far extension is concerned we cannot say anything before election. Any decision regarding denotifying will come only after the election,” said an official from the Export Promotion Council for export-oriented units.

DLF had also surrendered its 40-acre IT SEZ in Delhi some time back, owing to the slowdown.

“The IT/ITeS SEZ has already taken toll because of falling demand of the space. Right now, the focus of developers is to concentrate on completing their residential projects,” said an official from Parsvnath, which has dropped 12 SEZs.

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