Sonia

Faced with the new rule on special economic zone (SEZ) that limit the maximum area to 5,000 hectares, India's largest real estate player DLF may split its proposed mega zone in Haryana into two tax free enclaves in the region.

"We have just started the process of acquiring the land. Now, there will be one SEZ of 5,000 hectare but if we get more land, we may set up another SEZ of 3,000 hectare in Gurgaon," a senior company official said.

DLF had proposed a multi-product SEZ in Gurgaon covering over 8,000 hectare. However, the Centre yesterday decided to fix a ceiling of 5,000 hectare for multi-product SEZs. Such zones earlier required a minimum of 1,000 hectare but there was no upper limit.

The Empowered Group of Ministers, which decided on new rules, did not specify whether promoters would be allowed to build two SEZs in a contiguous area.

DLF, which has already filed draft red herring prospectus for its proposed IPO, would also rework its investment plan in the wake of SEZ rules. The official said in case the company was allowed only one SEZ, its planned investment would come down by at least Rs 4,000 crore.

Another real estate firm Omaxe, which planned an SEZ on over 6,000 hectare would also 'go back to the drawing board' to chalk out the new strategies.

But the company maintained that as of now it would go ahead with SEZ plan even though the size has been curtailed. Incidentally, Omaxe also is in process of launching an IPO to raise Rs 1,500 crore.

Both the realty firms may also inform market regulator SEBI about changes in their SEZ plans, reports PTI.

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