DLF, the country’s largest real estate company, has dropped its plans to set up an IT special economic zone (SEZ) in New Delhi. The company, which cited the global slowdown as the reason behind the move, will, instead, utilise about 25 acres purchased from Sriram Industries three years ago for residential projects.

The plot, close to Swatantra Bharat Mill, had an in-principle approval from the government to develop an IT-SEZ. The company has now applied for a formal withdrawal of the in-principle approval. The request for de-notification has come on the back of falling demand for commercial office space, and also keeping in view the current international environment.

Last year, DLF had, in one of the costliest land deals in the city, acquired 37 acres close to the proposed IT-SEZ land for Rs 1,675 crores. The idea was to develop the entire space as an integrated township, including an IT hub.

Meanwhile, six infotech special economic zone (SEZ) projects of the Unitech Group have been delayed by as much as three years owing to slowing demand and delays in government approvals. Alternative Investment Market (AIM)-listed Unitech Corporate Parks owns 60% each in these projects. Unitech Corporate Parks had raised £360 million through AIM in December 2006, and has invested £317 million in these SEZs. The group plans to develop 16 million sq ft of space under the projects.