DS Kulkarni Developers (DSK) has scrapped its plans to develop a multi-service SEZ over 250 acre in Phursungi at Pune in Maharashtra.

The group has sent the withdrawal request to the Board of Approvals for SEZs (BoA) and it has been approved. The group feels that the project is unviable due to new policy on SEZ.

Instead, the group is planning to invest Rs 8,000 crore in a residential township on the SEZ land. The total 1.80 crore sq ft area will be constructed which includes around 22,000 residential flats. The project is likely to be completed by 2017.

DSK has acquired 285 acre in Phursungi, out of which 250 acre was proposed for the SEZ project. The rest 35 acre is kept for reserve. The proposed multi-service SEZ had received formal approval from the BoA in January 2009.

According to the new rule, the group is permitted to develop SEZ only on 62.5 acre and 62.5 acre out of 250 acre for commercial developments like malls, hospital, theatre, school etc.

According to the group, the policy had earlier permitted to 50:50 land ratio to develop an SEZ and residential project, based on which the company had planned the residential and the SEZ projects. But, now the company has decided to phase out its SEZ plan and will construct a new residential township.

Related Links:
Project profile