(This entry was originally posted in April 2009 and it is based on the information and background of that time.)
Realtors are surrendering SEZs:
Recently, DLF Building India, one of the top Indian realtors, requested the Indian commerce ministry to derecognize five of its nine IT & ITES SEZs. After the news came out, National Stock Exchange officials, on April 16, 2009, asked for more information. On the other hand, commerce ministry officials said that they received an application from DLF with a request to surrender five of its nine SEZs. DLF officials did not comment on the matter either.
The five SEZs also include DLF’s Rs.85 billion SEZ in Gandhinagar,
Parsvnath Developers Ltd. another top Indian real estate company has put on hold its plan to develop 12 SEZs.
Ray of hope still exists:
However, not all is bad. There is still demand for SEZs. President Barack Obama offered tax incentives to those companies that would keep their jobs in
Tapan Sangal, Senior Manager, Pricewaterhouse Coopers, said that in the past two weeks, he had received many queries on IT related SEZs and engineering zones. Investors are still looking for projects that are potential and many real estate experts also observed some immediate demand for SEZ in the National Capital Region in the past few days. Rajiv Chugh, partner, Ernst and Young, said that they see a mismatch between demand and supply especially in
High demand in Chennai and Mumbai:
Chennai has 5.8 million SEZ space available and out of them only 0.6 million is vacant. As many projects are kept on hold many developers who have completed their projects will be able to attract customers.
In Mumbai, the peripheral and suburban areas have become very attractive for setting up IT & ITES SEZs for their lower price. Anshuman Magazine, Chairman and Managing Director, CB Richard Ellis,
In the wake of the global economic melt down IT companies are looking to find out cost effective business locations.