Unable to proceed with their projects due to different reasons, Vedanta Aluminium and Posco have sought more time from the Centre to implement their respective special economic zones (SEZs).
An inter-ministerial Board of Approval (BoA), chaired by Commerce Secretary Rahul Khullar, will consider both the requests on March 13, according to documents.
While South Korean steel major Posco’s project is getting delayed because of land issue, Vedanta Aluminium has some issues with their captive power plant, an official said.
Posco’s subsidiary Posco India Pvt Ltd had received in-principle approval from the BoA for setting up the Special Economic Zone (SEZ) at Jagatsinghpur. The in-principle clearance was valid till October 2011.
“The state government has now recommended extension of the in-principle approval up to October 2012,” documents said. The SEZ would come up at an area of 1,620 hectares, but the state government has leased only 245 hectares.
Vedanta Aluminium’s SEZ was notified in 2007 for setting up of a zone for manufacture and export of aluminum in Orissa. The developer was granted extension till May 2010.
It has sought extension till May 2013. “…The SEZ is likely to commence operations by December 2012 and exports are likely to commence by March 2013,” it added.
Sources said though the developer has completed about 90% of the project, there were some issues related with the captive power plant have to be resolved with the Orissa government. “That is why we have sought more time from the BoA,” the source added.
Besides, eleven other SEZ developers including that of Navi Mumbai SEZ ltd, Cochin Port Trust and Ansal IT City and Parks Ltd have sought more time from the BoA for implementation of their tax free enclaves.
The BoA would also consider four de-notification cases.
Maharashtra Industrial Development Corporation wants to surrender its pharmaceutical SEZ at Ratnagiri district. “The developer has requested for de-notification of the SEZ stating that the land on which the SEZ was proposed falls a part of 3,000 acre proposed to be allotted to HPCL for setting up of refinery project,” it said.
Bajaj Holdings and Investment Ltd wants to surrender its engineering tax free zone due to uncertain taxation scenario.
In the wake of uncertainties over tax incentives, scores of SEZ developers were given more time to execute their project and some of them have surrendered.
Besides, four developers including that of Infosys Ltd and Jubilant Infrastructure Ltd have approached the government to set up new zones.
Exports from SEZs grew by 23% to Rs 72,255 crore during the first quarter of 2011-12.
[Source – Business Standard]