NAGPUR: The Maharashtra Industries Development Corporation (MIDC) has forwarded an application to the board of approvals in the ministry of commerce to denotify the status of 140 hectares of land in Butibori as a special economic zone (SEZ).
It had plans to come up with a textile
SEZ in that area along with a private party Ajanta Projects India Limited as a co-developer.
According to the MIDC application put up before BOA, the plan to have a SEZ is now being scrapped as the co-developer did not fulfill the conditions, mentioned in the letter of intent. MIDC is also considering the proposed direct tax code as well as the global economic condition in its decision.
The case will be taken up during the BOA's meeting scheduled to be held on November 23.
Even earlier MIDC has SEZs including a textile SEZ planned at Yavatmal district, which is known for farmers' suicides. The textile SEZ was expected to bring a direct source of purchase for the cotton-growing farmers' produce.
The corporation does not find SEZs anymore attractive due the proposed direct tax code which has fixed a cut off date for allowing income tax benefits to the units in SEZ as well as a declining market for exports on account of the recession abroad.
The Mihan-SEZ being developed by Maharashtra Airport Development Company (MADC) is also getting fresh investment at a tardy pace.
Source : timesofindia.indiatimes.com