THERE IS A DECLINE IN THE DIVERISIFICATION PROCESS OF SPECIAL EXCONOMIC ZONE BY 3 MAJOR IT FIRMS
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Though the 3 major IT firms have received letter of authorization for executing 15 SEZs, researchers are of the view that it may be deferred due to a downtrend in the market. Since the government do not intend in setting up of the Software Technology Parks in the country (STIPS), Tata Consultancy Services, Infosys and Wipro are the said major IT firms in the process of shifting their activity to SEZs. This can be attributed due to the fact that Section 10A/10B gives tax benefits for exports for STIPS but is not so in the case of SEZs.
The CFO and Executive Director of TCS states at www.propertykhazana.com that operations on the SEZs would go at a slower pace because it needs pooling of funds and also some effective planning. A report also states that the group which has been offered to launch four SEZs in Andhra Pradesh, Gujarat and Chennai and also West Bengal the firms are given around 5-6 years for its development and that they would not postpone the same any further. Another source say at www.propertykhazana.com that the centers may not come up if it is deferred by another one or two years as their demand may decline. Though there is a demand for only 122 million Sq.ft (SEZ), around 163 million Sq.ft high class office space would be completed during the next two years.
The Infosys IT group has orders for starting 5 SEZs under 1,013 acres while Wipro has 242.6 acres for starting 6 SEZs in different locations. 80% of the Wipro group’s income is mainly from the SEZs and it intends to take up execution works of all the SEZ which are in their hands but new ones may not be undertaken. For more and latest Indian realty updates browse www.propertykhazana.com.
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