Centre awaits Goa response on SEZs

The Centre will take a final decision on the three notified special economic zones (SEZs) in Goa only after receiving a formal communication from the state government.

The Goa government had, on December 31, 2007, decided to scrap all SEZs in the state following widespread protests and recommend de-notification of the three notified SEZs.

“We are waiting to hear from the state government. Once we get their letter, we will respond to it and look at it,” Commerce Minister Kamal Nath said on the sidelines of a conference organised by the Confederation of Real Estate Developers’ Association of India (CREDAI) here today. Nath added it was for states to decide if they wanted SEZs or not.

“It is for a state to formulate its own policy. Some states want more, some states want less, some want it differently. The growth process of the state has to be determined by the state itself,” he said.

The three notified zones in Goa are Meditab Specialities, K Raheja Corporation and Peninsula Pharma. Pharma major Cipla has already invested Rs 200 crore in the meditab zone for setting up two units.

After the Goa government’s decision, Commerce Secretary Gopal K Pillai had said there was no provision in the SEZ Act to de-notify a zone. However, Nath later said the de-notification of an SEZ was possible.

When asked about the industry’s demand for lower taxes in the real estate sector to promote low-cost housing, Nath said: “I am in favour of what stimulates demand.”

Speaking at the function, CREDAI Chairman Kumar Gera said taxes constituted 25 per cent of the cost of real estate projects.

“If we take a pan-India average of Rs 2,700 per sq foot, at least Rs 700 goes towards paying taxes,” he said.

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