I am not sure what does "only if the Union commerce ministry agrees to grant the SEZ status without our formal recommendation could this project be rescued" means. SEZ cannot happen without State Government's Approval. Period. Here is the SEZ guideline that states - "Any individual, co-operative society, company or partnership firm can file an application for setting up of Special Economic Zone. The application is to be made in Form-A to the concerned State Government and the Board of Approval (BOA) in the Department of Commerce, Government of India. However the application would be considered by the BOA only when the State Government recommendation is received.".
Will be extremely disappointing to see Infy going...and trying to get "special" treatment everywhere for state can make it only long drawn and frustrating exercise where every other states are using tools like SEZs for their longer term benefits. In an Union, as a state, fight the policies at inception tooth and nail (or put pressure to change it) to align the same to your ideology - but once a policy is in place there extract most out of it. Otherwise, other states win at your cost and you keep on fighting.....
Interesting data on how many formal approvals granted after SEZ Rules coming into force (excluding the earlier ones) for different states: AP: 109 Goa: 7 Gujrat: 47 Haryana: 46 Karnataka: 61 Kerala: 28 Maharashtra: 103 Tamilnadu: 70 West Bengal: 22 (In Newtown - DLF, Shapoorji Pallonji, Unitech, TCS, Orion IT Parks have approvals)
Above number does not include zones before SEZ Rules coming into force (like Falta Special Economic Zone, Manikanchan SEZ, Salt Lake Electronic City -WIPRO)
PTI reports after Infy's meeting with WB Govt today: "Infosys, West Bengal government to jointly address SEZ issue" http://economictimes.indiatimes.com/tech/ites/infosys-west-bengal-government-to-jointly-address-sez-issue/articleshow/12083974.cms ... "Chatterjee said that Infosys has sought a meeting with Chief Minister Mamata Banerjee and a date would be fixed up shortly." ... "We are looking forward towards the meeting with chief minister where our executive chairman will also be present," he said.
Infosys hopeful of resolving SEZ issue with West Bengal
PTI Mar 7, 2012, 10.23PM IST BANGALORE: Infosys, which is seeking SEZ status for its proposed unit in Kolkata, today said it is hopeful of resolving the issue with the state government.
"We are having discussions with West Bengal government. We will not take any hasty decision. I am hopeful the issue will be resolved," Infosys Technologies Executive Co-Chairman Kris Gopalakrishnan told reporters here.
Infosys gets nod to set-up SEZ at Indore....March (the last one?) BOA of SEZ meeting minutes notes below.
(BTW, we have seen reports earlier that MP Govt had made Infosys to agree that the company will give 50% of the employment to local people. The state government has decided to provide 130 acres to Infosys on a 33-year lease. The project will be completed within five years investing Rs 600 crore near Super Corridor at Indore, which will generate over 13,000 jobs..)
"Addressing the Board of Approval members, the Chairman informed that so far 587 formal approvals have been granted for setting up of SEZs out of which presently 380 stand notified. He further informed that as on 31.12.2011, over Rs. 2,49,630.82 crores have been invested in the SEZs and direct employment of the order of 8,15,308 persons has been generated in the SEZs. During the financial year 2010-11, total exports to the tune of Rs. 3,15,867.85 crores have been made from the SEZs, registering a growth of about 43.11% over the exports for the year 2009-10. Exports in the current financial year (i.e. up to31.12.2011) have been to the tune of Rs. 2,60,972.89 crores."
Cannot WB review its "in principal" policy on SEZ to orient it towards being open to approve cases those do not encourage land-grabbing and real-estate business on allocated land? In anycase, it may be too late. At least today's ET report suggests that way- http://articles.economictimes.indiatimes.com/2012-03-19/news/31210627_1_sez-status-special-economic-zones-infosys-wipro
So....is the Infy project happening eventually? Or is it that they have decided to pull out and a formal announcement is waited? Sir, any updates on this?
SEZ window was planned to be closed on 31st March'12 (BOA had a meeting on 30th March to consider 5 SEZs- two in Kerala, 1 more near Bangalore for Wipro, 2 near Indore where Infy got SEZ approval recently)- I do not know if it got extended (did not notice in FM's budget)...In that case Infy may first foucs on ramping up on other facilities where they got SEZ before investing big at non-SEZ facilities....However this article came-up at today's Express...
IT giant Infosys, which has acquired 50 acres of land at Rajarhat for setting up a new project, will take a call on whether to go ahead with the project only after April 15.
“We are observing a ‘silent period’ between March 15 and April 15 and after that we will take a decision and tell everybody what we are going to do,’’ said Binod Hampapur, Global Head, Corporate Communications, Infosys.
According to officials of the Department of Information Technology, it was decided a month ago that things would be sorted out at a meeting of Infosys officials with Chief Minister Mamata Banerjee, but that meeting is yet to be scheduled as the CM herself has not given any date. “The whole thing is in a limbo. We are very scared about the future of the project,’’ an official of the IT department said. The company demanded SEZ status for the project which the chief minister declined saying “we are opposed to it in principle. It is anti-people and anti-farmer”.
Meanwhile NASSCOM apprehended that Infosys might meet the same fate of Tata Motors which had to quit from Singur. “We would request the government that in the interest of fresh investment in the state, the government should reconsider its decision and recomend SEZ status to Infosys,’’ said Suparno Moitra, Eastern Region head of NASSCOM.
Some rays of hope.... http://www.business-standard.com/india/news/mat-staysezs-may-help-bengal-keep-wipro-infosys-hopes-alive/470507/ .. Pranab Mukherjee’s decision to retain the minimum alternative tax (MAT) on units in special economic zones (SEZs) might have become a bane for the information technology (IT) industry, but the move would aid the Bengal government’s bid to keep Infosys and Wipro in the state .... (One small correction - MAT is proposed at 18.5% and not 20% as mentioned in the report)
Earlier report on ET: http://articles.economictimes.indiatimes.com/2011-03-18/news/29141844_1_sez-units-exemption-on-re-invested-profits-eous-and-sezs
Infy puts Bengal plan on hold, govt in dark Aparajita Gupta TNN
Kolkata: It’s final. Infosys is not coming to Bengal, at least for now. The information technology giant has put on hold its proposed project in the state although IT minister Partha Chatterjee said the government was not aware of any such move by the company. In reply to an email from TOI asking about the company’s plans for Bengal, Infosys senior vice-president and global head (commercial and corporate relations) Binod Hampapur said, “We have put the Kolkata project on hold for the time being. We shall review and proceed at an appropriate time.” Reacting to the news, Chatterjee told TOI: “I have no comments on it. Since we are unaware of any such move, I will think that the project is on. We still believe Infosys will carry on with its project over here. We are trying to resolve all the issues they have. We ensure all support to them.” Infosys, which made full payment last October for 50 acres in Rajarhat at . 1.5 crore per acre, had sought special economic zone (SEZ) status for its project, but the request was rejected. Cautious Infy forecast brings down markets Infosys Technologies suffered an unexpected decline in revenue and net profit in the fourth quarter ended March, compared to the preceding quarter, pushing the IT bellwether to give a very conservative revenue forecast for the new fiscal. The effect on the company’s share price was disastrous. The share fell 12.61% on the BSE. It also pulled most other IT stocks down and the BSE IT index closed the day down 8.76%. P 23 Infosys project in state could have generated 20k jobs The Mamata Banerjee government turned down Infosys’ request for SEZ status for its proposed project saying it was “in-principle” against giving SEZ status to any project. The company had then written to the Housing Infrastructure Development Corporation (Hidco), the nodal agency for the development of Rajarhat, seeking clarification on the SEZ status. Hampapur, during his visit to the state on February 29, had insisted that the SEZ status was required for the project to kick off. The proposed project had the potential to generate 20,000 jobs in the state. Nasscom regional manager Suparno Moitra said: “Nothing could be more disappointing than this. If this project does not come through, Bengal’s image will suffer another set back.
Here is a link that appeared in Mint today:
ReplyDeletehttp://www.livemint.com/2012/02/15231552/Will-return-plot-if-SEZ-status.html?h=B
I am not sure what does "only if the Union commerce ministry agrees to grant the SEZ status without our formal recommendation could this project be rescued" means. SEZ cannot happen without State Government's Approval. Period. Here is the SEZ guideline that states - "Any individual, co-operative society, company or partnership firm can file an application for setting up of Special Economic Zone. The application is to be made in Form-A to the concerned State Government and the Board of Approval (BOA) in the Department of Commerce, Government of India. However the application would be considered by the BOA only when the State Government recommendation is received.".
ReplyDeleteWill be extremely disappointing to see Infy going...and trying to get "special" treatment everywhere for state can make it only long drawn and frustrating exercise where every other states are using tools like SEZs for their longer term benefits. In an Union, as a state, fight the policies at inception tooth and nail (or put pressure to change it) to align the same to your ideology - but once a policy is in place there extract most out of it. Otherwise, other states win at your cost and you keep on fighting.....
Today's TV report:
ReplyDeleteইনফোসিসকে বিকল্প প্রস্তাব রাজ্যের
Interesting data on how many formal approvals granted after SEZ Rules coming into force (excluding the earlier ones) for different states:
ReplyDeleteAP: 109
Goa: 7
Gujrat: 47
Haryana: 46
Karnataka: 61
Kerala: 28
Maharashtra: 103
Tamilnadu: 70
West Bengal: 22 (In Newtown - DLF, Shapoorji Pallonji, Unitech,
TCS, Orion IT Parks have approvals)
Above number does not include zones before SEZ Rules coming into force (like Falta Special Economic Zone, Manikanchan SEZ, Salt Lake Electronic City -WIPRO)
Great information
ReplyDeletePTI reports after Infy's meeting with WB Govt today:
ReplyDelete"Infosys, West Bengal government to jointly address SEZ issue"
http://economictimes.indiatimes.com/tech/ites/infosys-west-bengal-government-to-jointly-address-sez-issue/articleshow/12083974.cms
...
"Chatterjee said that Infosys has sought a meeting with Chief Minister Mamata Banerjee and a date would be fixed up shortly."
...
"We are looking forward towards the meeting with chief minister where our executive chairman will also be present," he said.
Yes, I had a telephonic discussion with Mr Partha Chatterjee today afternoon. I was in the Delhi bound plane then.
ReplyDeleteInfosys hopeful of resolving SEZ issue with West Bengal
ReplyDeletePTI Mar 7, 2012, 10.23PM IST
BANGALORE: Infosys, which is seeking SEZ status for its proposed unit in Kolkata, today said it is hopeful of resolving the issue with the state government.
"We are having discussions with West Bengal government. We will not take any hasty decision. I am hopeful the issue will be resolved," Infosys Technologies Executive Co-Chairman Kris Gopalakrishnan told reporters here.
Infosys gets nod to set-up SEZ at Indore....March (the last one?) BOA of SEZ meeting minutes notes below.
ReplyDelete(BTW, we have seen reports earlier that MP Govt had made Infosys to agree that the company will give 50% of the employment to local people. The state government has decided to provide 130 acres to Infosys on a 33-year lease. The project will be completed within five years investing Rs 600 crore near Super Corridor at Indore, which will generate over 13,000 jobs..)
http://www.sezindia.nic.in/writereaddata/updates/BOA_51st_minutes.pdf
An interesting quote from last BOA meeting:
"Addressing the Board of Approval members, the Chairman informed that so far 587 formal approvals have been granted for setting up of SEZs out of which presently 380 stand notified. He further informed that as on 31.12.2011, over Rs. 2,49,630.82 crores have been invested in the SEZs and direct employment of the order of 8,15,308 persons has been generated in the SEZs. During the financial year 2010-11, total exports to the tune of Rs. 3,15,867.85 crores have been made from the SEZs, registering a growth of about 43.11% over the exports for the year 2009-10. Exports in the current financial year (i.e. up to31.12.2011) have been to the tune of Rs. 2,60,972.89 crores."
Cannot WB review its "in principal" policy on SEZ to orient it towards being open to approve cases those do not encourage land-grabbing and real-estate business on allocated land?
In anycase, it may be too late. At least today's ET report suggests that way-
http://articles.economictimes.indiatimes.com/2012-03-19/news/31210627_1_sez-status-special-economic-zones-infosys-wipro
So....is the Infy project happening eventually? Or is it that they have decided to pull out and a formal announcement is waited? Sir, any updates on this?
ReplyDeleteSEZ window was planned to be closed on 31st March'12 (BOA had a meeting on 30th March to consider 5 SEZs- two in Kerala, 1 more near Bangalore for Wipro, 2 near Indore where Infy got SEZ approval recently)- I do not know if it got extended (did not notice in FM's budget)...In that case Infy may first foucs on ramping up on other facilities where they got SEZ before investing big at non-SEZ facilities....However this article came-up at today's Express...
Deletehttp://www.indianexpress.com/news/it-firm-to-decide-after-april-15/931298/
IT firm to decide after April 15
IT giant Infosys, which has acquired 50 acres of land at Rajarhat for setting up a new project, will take a call on whether to go ahead with the project only after April 15.
“We are observing a ‘silent period’ between March 15 and April 15 and after that we will take a decision and tell everybody what we are going to do,’’ said Binod Hampapur, Global Head, Corporate Communications, Infosys.
According to officials of the Department of Information Technology, it was decided a month ago that things would be sorted out at a meeting of Infosys officials with Chief Minister Mamata Banerjee, but that meeting is yet to be scheduled as the CM herself has not given any date. “The whole thing is in a limbo. We are very scared about the future of the project,’’ an official of the IT department said. The company demanded SEZ status for the project which the chief minister declined saying “we are opposed to it in principle. It is anti-people and anti-farmer”.
Meanwhile NASSCOM apprehended that Infosys might meet the same fate of Tata Motors which had to quit from Singur. “We would request the government that in the interest of fresh investment in the state, the government should reconsider its decision and recomend SEZ status to Infosys,’’ said Suparno Moitra, Eastern Region head of NASSCOM.
Some rays of hope....
Deletehttp://www.business-standard.com/india/news/mat-staysezs-may-help-bengal-keep-wipro-infosys-hopes-alive/470507/
..
Pranab Mukherjee’s decision to retain the minimum alternative tax (MAT) on units in special economic zones (SEZs) might have become a bane for the information technology (IT) industry, but the move would aid the Bengal government’s bid to keep Infosys and Wipro in the state
....
(One small correction - MAT is proposed at 18.5% and not 20% as mentioned in the report)
Earlier report on ET:
http://articles.economictimes.indiatimes.com/2011-03-18/news/29141844_1_sez-units-exemption-on-re-invested-profits-eous-and-sezs
Infy puts Bengal plan on hold, govt in dark
ReplyDeleteAparajita Gupta TNN
Kolkata: It’s final. Infosys is not coming to Bengal, at least for now. The information technology giant has put on hold its proposed project in the state although IT minister Partha Chatterjee said the government was not aware of any such move by the company.
In reply to an email from TOI asking about the company’s plans for Bengal, Infosys senior vice-president
and global head (commercial and corporate relations) Binod Hampapur said, “We have put the Kolkata project on hold for the time being. We shall review and proceed at an appropriate time.”
Reacting to the news, Chatterjee told TOI: “I have no comments on it. Since we are unaware of any such move, I will think that the project is on. We still believe Infosys will carry on with its project over here. We are trying to resolve all the issues they have. We ensure all support to them.”
Infosys, which made full payment last October for 50 acres in Rajarhat at . 1.5 crore per acre, had sought special economic zone (SEZ) status for its project, but the request was rejected.
Cautious Infy forecast brings down markets
Infosys Technologies suffered an unexpected decline in revenue and net profit in the fourth quarter ended March, compared to the preceding quarter, pushing the IT bellwether to give a very conservative revenue forecast for the new fiscal. The effect on the company’s share price was disastrous. The share fell 12.61% on the BSE. It also pulled most other IT stocks down and the BSE IT index closed the day down 8.76%. P 23 Infosys project in state could have generated 20k jobs
The Mamata Banerjee government turned down Infosys’ request for SEZ status for its proposed project saying it was “in-principle” against giving SEZ status to any project.
The company had then written to the Housing Infrastructure Development Corporation (Hidco), the nodal agency for the development of Rajarhat, seeking clarification on the SEZ status. Hampapur, during his visit to the state on February 29, had insisted that the SEZ status was required for the project to kick off.
The proposed project had the potential to generate 20,000 jobs in the state.
Nasscom regional manager Suparno Moitra said: “Nothing could be more disappointing than this. If this project does not come through, Bengal’s image will suffer another set back.
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIKM%2F2012%2F04%2F14&ViewMode=GIF&PageLabel=3&EntityId=Ar00303&AppName=1