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 (UCP) owns 60 per cent 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.

“No realty company would want its funds to be stuck in SEZs, especially now when markets are in bad shape. We will rush the projects as and when demand picks up,” a source in the company said, declining to be named.

Admitting the delay, a company spokesperson said: “Yes, there has been a delay in these projects with respect to the original schedule envisaged at the time of the listing of Unitech Corporate Parks Plc.”

The approvals for these projects came at the end of last year or early this year, delaying the start of the projects, according to the company official.

“That schedule was prepared assuming that the SEZ and other approvals from the government would come in a certain time frame. However, there was a delay in getting SEZ approvals because the government suspended the approval process during the period when they were reviewing the SEZ policy,” the official added.

“However, these projects have now been notified as SEZs and construction is in progress at all these sites,’’ the spokesperson said without specifying a schedule for completing the projects. “In fact, G2 and K1 have already started generating rental income. There is no debt in any of these projects,” the spokesperson claimed.