Govt agrees to de-notify 40% of Reliance Industries SEZ
19 Jan 2013 6:15 AM IST
Reliance Industries on Friday won government approval to de-notify over 40 per cent of its Special Economic Zone in Gujarat as it plans Rs 45,000 crore projects in that area to cater to domestic market.
An official said RIL's proposal was approved at the meeting of Board of Approvals (BoA) SEZ subject to the company obtaining a no-objection certificate (NOC) from the state government for the denotification. 'The BoA on Friday approved the proposal but they have to take an NoC from the state government and the company also have to refund the tax benefits it may have availed for operating units in the only-for-export zone,' he said.
The decision was taken on Friday by the Board of Approval for SEZ, which is headed by Commerce Secretary S R Rao. RIL's multi-product SEZ is spread over 1,764.14 hectares. The company wants partial de-notification of an area of 728.43 hectares, leaving 1,035.72 hectares of plan for the multi-product SEZ.
Sources said that in the de-notified area RIL plans to invest Rs 45,000 crore in new projects that will cater to domestic demand. The developer had applied for partial de-notification so as to implement a number of new projects in the domestic tariff area (DTA) in Jamnagar near the SEZ. The proposed projects will mainly cater to the significant existing domestic demand. RIL had stated in the proposal that it plans to invest Rs 45,000 crore in projects in the de-notified area. SEZ houses 580,000 barrels per day or 29 million tons a year oil refinery that exports fuel to far off countries like Venezuela and Mexico, besides the US and Europe. An adjacent 33 million tons older unit cater to the domestic market.
Billionaire Mukesh Ambani-led firm is investing over $12 billion in its core refining and petrochemical industries as output from its eastern offshore KG-D6 fields dips to an all-time low of around 22 million standard cubic meters a day.
RIL is investing $8 billion, the most since it completed a second oil refinery in 2008, in expansion of its petrochemical business to meet rising demand of plastics and polyester.
Also, it is setting up a $4 billion petroleum coke gasification project that will produce synthetic natural gas that will replace expensive LNG as fuel.
TCS SEEKS MORE TIME TO SET UP SEZ UNITS IN ANDHRA, MAHARASHTRA
Country’s largest IT exporter TCS has approached the Commerce Ministry seeking more time to set up a sector specific special economic zone (SEZ) in Andhra Pradesh.
Tata Consultancy Services (TCS) is also seeking more time for setting up a unit in Mihan SEZ at Nagpur in Maharashtra. The company was granted formal approval for setting up a SEZ over an area of 30.35 hectares in 2008 at Adibatla in Andhra Pradesh.
According to a note from the Commerce Ministry, the IT major is seeking more time on various grounds.
TCS has already been already granted two extensions and the last one expires on 3 February 2013.
A TCS spokesperson did not reply to queries seeking clarifications on Adibatla SEZ.
The IT major was granted approval for setting up an IT/ITES unit at Mihan SEZ in April, 2008 and was given two extensions so far. The last extension will expire on April 23, 2013.
‘Delay in implementation of the project is due to global slowdown and the company is serious about project. It has already started construction and invested up to Rs 240 crore in the project. They expect to start the operation in 2014,’ another note from the Commerce Ministry said.
An official said RIL's proposal was approved at the meeting of Board of Approvals (BoA) SEZ subject to the company obtaining a no-objection certificate (NOC) from the state government for the denotification. 'The BoA on Friday approved the proposal but they have to take an NoC from the state government and the company also have to refund the tax benefits it may have availed for operating units in the only-for-export zone,' he said.
The decision was taken on Friday by the Board of Approval for SEZ, which is headed by Commerce Secretary S R Rao. RIL's multi-product SEZ is spread over 1,764.14 hectares. The company wants partial de-notification of an area of 728.43 hectares, leaving 1,035.72 hectares of plan for the multi-product SEZ.
Sources said that in the de-notified area RIL plans to invest Rs 45,000 crore in new projects that will cater to domestic demand. The developer had applied for partial de-notification so as to implement a number of new projects in the domestic tariff area (DTA) in Jamnagar near the SEZ. The proposed projects will mainly cater to the significant existing domestic demand. RIL had stated in the proposal that it plans to invest Rs 45,000 crore in projects in the de-notified area. SEZ houses 580,000 barrels per day or 29 million tons a year oil refinery that exports fuel to far off countries like Venezuela and Mexico, besides the US and Europe. An adjacent 33 million tons older unit cater to the domestic market.
Billionaire Mukesh Ambani-led firm is investing over $12 billion in its core refining and petrochemical industries as output from its eastern offshore KG-D6 fields dips to an all-time low of around 22 million standard cubic meters a day.
RIL is investing $8 billion, the most since it completed a second oil refinery in 2008, in expansion of its petrochemical business to meet rising demand of plastics and polyester.
Also, it is setting up a $4 billion petroleum coke gasification project that will produce synthetic natural gas that will replace expensive LNG as fuel.
TCS SEEKS MORE TIME TO SET UP SEZ UNITS IN ANDHRA, MAHARASHTRA
Country’s largest IT exporter TCS has approached the Commerce Ministry seeking more time to set up a sector specific special economic zone (SEZ) in Andhra Pradesh.
Tata Consultancy Services (TCS) is also seeking more time for setting up a unit in Mihan SEZ at Nagpur in Maharashtra. The company was granted formal approval for setting up a SEZ over an area of 30.35 hectares in 2008 at Adibatla in Andhra Pradesh.
According to a note from the Commerce Ministry, the IT major is seeking more time on various grounds.
TCS has already been already granted two extensions and the last one expires on 3 February 2013.
A TCS spokesperson did not reply to queries seeking clarifications on Adibatla SEZ.
The IT major was granted approval for setting up an IT/ITES unit at Mihan SEZ in April, 2008 and was given two extensions so far. The last extension will expire on April 23, 2013.
‘Delay in implementation of the project is due to global slowdown and the company is serious about project. It has already started construction and invested up to Rs 240 crore in the project. They expect to start the operation in 2014,’ another note from the Commerce Ministry said.
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