Chennai:

Concerned over the delay in getting clearance from the Centre for its IT SEZ in Chennai, India’s largest listed developer DLF has decided to pull out of the project, communicating the same to Tamil Nadu government. Tamil Nadu’s deputy chief minister MK Stalin informed the state assembly on Tuesday that DLF is keen to exit the proposed ITspecial economic zone (SEZ) project, which was supposed to be set up on 26.24 acres at Taramani in Chennai. DLF has offered to return the land and also asked the state government to refund the Rs. 700 crore that it had paid earlier.

“At Taramani in Chennai, an IT-related SEZ was proposed on an extent of 26.64 acre and DLF was selected through the transparent open tender procedure. Though this firm had already remitted Rs. 700 crore to the government towards the cost of the land, they have been requesting return of this money as approval by the Central government for the SEZ is getting delayed,” Mr Stalin told the House.

Apart from problems on securing clearance from the Centre, there also seem to be differences between DLF and government agency, Tidco (Tamil Nadu Industrial Development Corporation) over the terms and conditions of the agreement for the SEZ.

“As per the agreement, at least 2.5 million square feet (sq ft) of IT/ITeS space needs to be developed in the SEZ. But DLF is not keen to develop this in an SEZ because existing units cannot be shifted to a new SEZ,” Tidco chairman and managing director Sunil Paliwal said.

DLF, on the other hand, did not wish to comment on the subject. When contacted, DLF Southern Homes MD KK Raman said: “We have no comments. We have several options.” But he didn’t elaborate on what those options were.

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