NEW DELHI:
Centre's decision to freeze approvals for special economic zones (SEZs) has created apprehensions among several states, foreign companies and investors which may even prompt certain international firms to drop some SEZ proposals.
Chief Ministers of states including Haryana, Gujarat, Karnataka, Tamil Nadu and Andhra Pradesh have written to members of empowered group of ministers and companies like Taiwanese footwear group, Feng Tay Enterprises and Sri Lankan textile company Brandix have written to Commerce Ministry, said Government officials.
States and companies have already acquired the required land for SEZs and have asked the Centre to notify SEZs which has already got formal go-ahead from Board of Approval.
They said waiting for decision would mean further delay in investments and likely diversion of some big investments to other countries.
Lotus Footwear Enterprises Ltd, a group company of Feng Tay, has written to Commerce Ministry that a 275 acre plot in Tamil Nadu for a foot wear SEZ with plans to invest Rs300 crore has already been acquired by them, which would provide employment to 20,000 people.
Formal approval was obtained from the Centre in November 2006 and orders for machinery has been placed but notification of SEZ is still pending, Lotus said.
Around 63 notified SEZs have so far brought in investments worth over Rs13,500 crore and provided employment to over 18,000 people, accordingto the Commerce Ministry.
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