Exclusive | DLF, TCS get nod for IT SEZs in Gurugram and Noida
These proposals were cleared by the Board of Approval, the highest decision-making body for SEZs, in its meeting held on February 26. The inter-ministerial body is chaired by the commerce secretary
DLF and TCS have been given the go-ahead by the government to set up IT special economic zones (SEZs) in Haryana and Uttar Pradesh, sources told Moneycontrol.
These proposals were cleared by the Board of Approval, the highest decision-making body for SEZs, at its meeting on February 26. The inter-ministerial body is chaired by the Commerce Secretary.
DLF has got the nod for the setting up of two SEZs for IT/ITeS at Bandhwari in Gurugram, spread over 23.34 hectares and 23.98 hectares, entailing investments of Rs 793.95 crore and Rs 761.54 crore, respectively.
"Both the proposals have been cleared subject to the condition that the letter of approval (LoA) for setting up of the units would be issued only after the requirement of contiguity of the SEZ is fulfilled by the developer as per the relevant rules and instructions," sources told Moneycontrol.
TCS has also been given the nod to set up an Information Technology/Information Technology-enabled services SEZ over an area of 19.90 hectares in Sector 157 in Noida, sources said.
The total proposed investment for the project is Rs 2,433.72 crore, they said.
According to the sunset clause, there is a 100 per cent income tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for the first five years, 50 per cent for next five years and 50 per cent of the ploughed back export profit for subsequent five years. This will expire on March 31, 2020.
SEZs had emerged as major export hubs in the country, but their shine has dimmed after the imposition of Minimum Alternate Tax and introduction of the sunset clause.