Date:05/07/2008 URL: http://www.thehindu.com/2008/07/05/stories/2008070560800300.htm

Kerala - Kochi

State to stress single-SEZ status for SmartCity project

Staff Reporter

If Centre declines, two master plans will be needed

Nod for 136 acres of SEZ given earlier
SEZ status would mean duty exemptions

KOCHI: The State government is planning to leave no stones unturned to secure a Special Economic Zone (SEZ) status for SmartCity Kochi project. Speaking at a media briefing on Thursday, Fisheries Minister S. Sarma, who is also the chairman of SmartCity Kochi, said the government and the SmartCity Kochi would jointly approach the Centre for a single-SEZ status for the entire 246 acres of the project. Apparently at the board meeting of SmartCity officials it was decided that the government should strive for a single-SEZ status rather than separate ones for portions of the project area. This would lead to major technical, operational and administrative problems. Talking on the sidelines of the board meeting, Fareed Abdulrahman, Chief Executive Officer, SmartCity, said if the entire project area was not given a single-SEZ status it would not have the desired ‘impact’.

But it is not clear if the Centre would grant accept the State’s demand. Mr. Sarma had said the scope for receiving a single-SEZ status would be explored, and if not possible, the government would file a separate application seeking SEZ status for the remaining 100 acres.

The Board of Approval for Special Economic Zone (SEZ) of the Union government had granted SEZ status to 136 acres in March this year. But it withheld the status to 100 acres on the ground that a public road passed through the middle of it making it a separate plot from the rest.

Since then it was decided to move the road to the periphery of the project area. A meeting to discuss the issue would be convened next week. Ministers of Public Works, Power and SmartCity officials are expected to attend the meeting. The status of another 10 acres of land handed over by Kerala Industrial Infrastructure Development Corporation for the project also remains to be decided. If the Centre declined to accord a single-SEZ status then technically it would mean two Smart Cities, thus forcing the promoters to go for separate master plans instead of a single master plan as envisaged now.

The SEZ status becomes crucial as registration of land as SEZ would mean registration and stamp duty exemption. What is required is a single-SEZ status for the entire area so that a complete exemption of registration and stamp duties could be availed.