economic meltdown coupled with amendments in IT rules & imposition of 18.5% MAT has affected investment plans.
Pharmaceutical major Teva API’s recent decision to abandon its Pithampur manufacturing unit has brought to fore the sorry state of affairs at Pithampur Special Economic Zone (SEZ) which has failed to receive a single investment proposal in this fiscal.
Teva API’s decision is a major setback for Indore’s industrial prospects as the company had planned to pump in Rs 872 crore in proposed local unit.
Yonatan Beker, Israel Corporate Communications Director and Global Communications Liaison Teva in an e-mail response to dna stated, “Given the recent changes in market conditions and after a careful review of its long-term plans, Teva has decided that it will not need additional capacity represented by this site and will therefore not develop the Pithampur site further.”
Teva is not alone which is feeling the heat of global meltdown, as the Pithampur SEZ has failed to attract a single investor in the FY 2013-14.
President, Pithampur Audyogik Sangthan Gautam Kothari maintained that the global recession coupled with amendments in Income Tax rules and imposition of 18.5% Minimum Alternate Tax (MAT) has taken sheen out of SEZs including the one at Pithampur (Dhar).
AK Rathore, SEZ Development commissioner Indore, affirmed that no investment proposal has been received for Pithampur SEZ in FY 2013-14.
When it comes to fresh investments, land availability has not been a constraint for the SEZ, as out of the total 1113 hectare land falling in this zone, total 400 hectare is lying unallotted.
However as per existing norms, a minimum of 1,000 hectare of land was a must for development of SEZ and hence, only the remaining land of 113 hectare can be notified.
At present, there are 45 export-centric units in SEZ including half a dozen in construction stage.
Despite sluggish scenario at global level, these units managed exports of Rs 1,290 crore in the first half of this fiscal, registering growth of around 36%, as compared to the same period in the last financial year, when the export figure stood at Rs 947 crore mark.
SETBACK TO CITY’S INDUSTRIAL PUSH
After witnessing turbulent times recently, Teva API, world’s largest drug manufacturer put all the expansion plans in India on hold. The pharma giant was alloted an area of 2.72 lakh sq mt at Pithampur SEZ in 2013 and it had deposited a sum of Rs 40.28 cr under various heads
US IT Major Collabera is reviewing viability of its proposed unit established at Indore supposedly in the backdrop of economic meltdown in US.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}