Real Estate: Govt allows IT SEZs floor-wise denotification
News: The central government has allowed partial and floor-wise denotification of special economic zones through a key amendment to SEZ Rules, 2006. As per the Special Economic Zones (Fifth Amendment) Rules, 2023, the board of approval, on request of a developer of an information technology (IT) or IT-enabled services SEZs, may permit demarcation of part of the built-up area of the SEZ as non-processing area. This non-processing area can be utilised to set up operations of businesses engaged in IT and ITeS.
Views: This move will likely help reduce vacancy levels for REIT players. Furthermore, in our coverage Brigade which has largely SEZ area vacant can capitalise to denotify and accelerate the leasing.