Date:12/08/2006 URL: http://www.thehindu.com/2006/08/12/stories/2006081211430400.htm

Karnataka - Bangalore

Centre approves five SEZs in State

Special Correspondent

Infosys to develop SEZ in Mysore

Suzlon will set up an SEZ at Padubidri with an investment of Rs. 1,000 crore
Plans afoot to set up five more SEZs in State

IT parks to come up in Kolar districts

BANGALORE: The Board of Approval of the Union Ministry of Commerce and Industry has given in-principle approval for setting up five Special Economic Zones (SEZ) with an investment of Rs. 2,216 crore in the State, which has lagged behind other States in developing such zones.

Minister for Industries Katta Subramanya Naidu said Infosys would develop an SEZ in the information technology sector in Mysore.

It would come up on 30.99 hectares of land in the Hebbal Industrial Area of Mysore at an estimated cost of Rs. 334 crore.

The other SEZs to be developed would be by SAN Engineering and Locomotive Ltd. on 10 hectares with an investment of Rs. 339 crore at Whitefield in Bangalore; HCL Technologies Ltd. at Jigani Industrial Estate near here on 11.5 hectares of land and with an investment of Rs. 508 crores; Quest Machines Private Ltd. on 121 hectares in Belgaum with an investment of Rs. 35 crore; and Suzlon would develop a hi-tech engineering SEZ on 302 hectares at Padubidri in Dakshina Kannada district with an investment of Rs. 1,000 crore.

The Board cleared the projects at its meeting held on August 8 in New Delhi, the Minister said.

Tax sops

The industries set up at the SEZs would be exempted from payment of income tax, excise and sales tax for 15 years. To attract private investment, the State Government had proposed to develop SEZs on 21,000 hectares of land.

Maharashtra had earmarked 45,000 hectares of land for such zones, Gujarat 18,000 hectares, Haryana 1,20,000 hectares, Tamil Nadu 22,000 acres, Kerala 11,000 acres and Punjab 16,000 hectares of land, he said.

Land identified

The Government had identified 11,500 acres in Bangalore Rural, Kolar, Tumkur and Mysore districts for setting up industries. About 4,500 hectares of land had been notified for acquisition.

A plan was ready to set up SEZs in Bidar (pharmaceutical), Raichur (food), Koppal (steel) and Belgaum (foundry). As many as 31 prospective investors had applied to the State seeking permission to establish SEZs, he said.

Seventy-two small and medium enterprises had submitted proposals for investment.

Plan mooted

The State had received investment proposals totalling Rs. 18,000 crore. A plan had been mooted to set up IT parks in Chikballapur, Malur and Bangarpet towns in Kolar district, he said.

The Government had urged the Centre to enhance the existing limit of 150 SEZs for a State to enable Karnataka to develop more number of them to attract investments.

Mr. Naidu said the draft of the new industrial policy proposed to be unveiled by the State was ready and would be placed before the next meeting of the Cabinet for approval.