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Developers Moving Away from SEZ Projects Might Impact PM's Make in India Campaign

News:

Reliance Industries chief Mukesh Ambani is planning to exit the Navi Mumbai special economic zone (SEZ), as the project has failed to take off in the past 11 years, despite extensions by the Maharashtra government. The SEZ’s promoter, Jai Corp (owned by Ambani’s close confidant Anand Jain), has blamed the global financial crisis and the withdrawal of fiscal incentives by the Centre for the project turning unviable.

Source:  Business Standard

SNP Insight:

SEZ project at Navi Mumbai, Raigarh, & Haryana are at the brink of going unviable as developers are moving away from the project. Government withdrawal of fiscal incentives along with tough land acquisition norms are key factors to blame. Recent Chinese Recession & global economic downturn are adding to the owes. If the trend continues, PMs ‘Make in India’ campaign to bolster manufacturing sector in India may go for a toss posing question mark to government’s plan for reviving exports through development of SEZ.

Source: SNP Infra Research