ET reported that the economic slowdown and the problems in acquiring land is making developers re think their SEZ plans and 10 of them have approached the government for withdrawal of approvals for setting up the tax free enclaves.

The report added that in addition at least eight SEZs have sought extension citing different reasons like problems in acquiring land.

The applications for seeking withdrawal of approvals and extension of validity of clearances will be considered by the Board of Approvals in the Commerce Ministry in its meeting on October.

Promoters which want to pull out of these projects in the wake of the slow down for commercial space include Gremach Infrastructure Equipments for its proposed project at Kolhapur, ETL Infrastructure Services' project at Kancheepuram in Tamil Nadu and Maharashtra Industrial Development Corporation for a bio technology SEZ at Jalna in Maharashtra.

An official said that those seeking extension of time include Mumbai SEZ, promoted by Reliance Industries' Chairman Mukesh Ambani and his close aide Anand Jain, Gitanjali Gems, Jubliant Infrastructure and L&T Hitech City.

The BoA has so far approved one year extension to 81 developers.

(Sourced from Economic Times)