Minimum area norm scuppers Hewlett SEZ

Global IT giant Hewlett Packard has decided to abandon its plans for a special economic zone in Bangalore, following changes in government guidelines on the minimum area requirement.

Global IT giant Hewlett Packard has decided to abandon its plans for a special economic zone (SEZ) in Bangalore, following changes in government guidelines on the minimum area requirement.

The company has informed the commerce ministry that it is withdrawing its application, which had received formal approval from the ministry, as the company will not be in a position to meet the minimum area required for IT and IT-enabled Services (ITeS).

Initially, the world’s largest computer maker wanted to set up an SEZ over an area of 60,000 sq m. However, later the minimum built-up area of an IT, ITeS and electronics SEZ was revised upwards to 100,000 sq m on the directive of the empowered group of ministers.

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HP received final approval from the Board of Approvals for the SEZ in September 2006, but it decided it would not be able to meet the minimum build-up area condition and gave up its plans.

Another developer proposing to set up an IT and ITeS SEZ in Hyderabad, CA Associates, has also decided not to go ahead with its plans even after having received final approval. With two companies opting out, the number of developers with final approvals for SEZs has come down to 235 from 237.

Sources said five developers, who have in-principle approval for SEZs, have also given up their plans. This has brought down the number of cases with in-principle approval to 162. Many opted out because the land they identified for SEZs was not available.