Nagpur: The Development Commissioner (DC) for the Multi-modal International Cargo Hub and Airport at Nagpur Special Economic Zone (MIHAN-SEZ) has taken proactive measures to initiate the exit procedure for companies that have failed to commence operations within the stipulated time frame. This move follows the issuance of notices to more than 30 companies last year, whose Letters of Approval (LOA) had expired due to the lack of operational activities, as reported by local media.
In the context of SEZs, an LOA functions as a license permitting companies to operate within the zone. In these instances, the LOAs had lapsed as the companies had not initiated operations within the prescribed time, even after extensions had been granted.
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According to the report, initial cancellation notices were served to these companies, and the DC office awaited their responses. Now, the final phase involves evaluating the financial obligations of these non-starter entities. This includes assessing the potential import of materials during construction or other activities and calculating the corresponding tax dues. If there are no outstanding dues, the Customs Department will issue a No-Objection Certificate (NOC), and the companies’ names will be promptly removed from the SEZ records, as per the media report.
Subsequently, the list of these companies will be forwarded to the Maharashtra Airport Development Company (MADC), the agency responsible for MIHAN-SEZ’s development, for the removal of their names. The MADC has demonstrated its commitment to addressing this issue and is collaborating closely with the DC office, as mentioned in the report.
The report also indicates that efforts will be made to recover any outstanding tax dues, ideally before the companies’ exit from the SEZ. However, the possibility of taking action at a later stage has not been ruled out. The process of determining these dues is expected to be completed by December. Following this, the cases will be presented to the SEZ’s Unit Approval Committee (UAC) for the issuance of final exit orders.
This strategic move is expected to release land within the MIHAN-SEZ that is currently allocated to non-starter companies. Many of these non-starters are co-developers who have acquired substantial land parcels within the SEZ but have failed to commence any operational activities. It is worth noting that co-developers have the option to develop specific sections of the SEZ and lease them to other companies.
The report highlights that one such co-developer, allocated over 50 acres of land, is untraceable, and repeated attempts to establish contact by the DC office have gone unanswered. The initiative is expected to optimize land utilization within the MIHAN-SEZ, fostering a more dynamic and efficient economic environment for both existing and potential businesses operating within the SEZ.
