Medha IT Park might lose SEZ tag
Existing companies in the IT park would lose all SEZ benefits thus affecting them
Vijayawada: The state government’s proposal to move some of its offices to the Medha IT Park in Gannavaram poses a threat to the local IT industry as the state will have to de-notify Special Economic Zone for this purpose.
The tower, called Medha was built in the Special Economic Zone, covering 30 acres of government land.
The state can only use the space in the SEZ for government purposes after de-notifying it. This means, the existing companies in the IT park would lose all the tax exemption benefits as per the SEZ Act.
Fueling the speculation, a post on Telugu Desam’s official Facebook page said: “Offices of transport, irrigation, fisheries, animal husbandry and directorate of town planning, will move to Medha Towers which has a built-up space of 2 lakh square feet”.
“Once the SEZ is de-notified there would be no incentives and other benefits for any software company,” said a source.
District collector M. Raghunanda Rao said that the district administration so far had not received any order from the state government regarding this.