New Delhi: The government on Tuesday deferred a
decision on privately held Essar Steel's request seeking de-
notification of its sector-specific SEZ in Hazira, Gujarat.
The Board of Approval (BoA) in the commerce ministry,
which met here, "deferred the decision on Essar SEZ Hazira
de-notification proposal", an official said.
The BoA headed by Commerce Secretary Rahul Khullar has
sought more details, particularly from customs official,
regarding tax benefits availed by the developer, he said.
While industrial houses were clamouring for SEZ projects
a few years ago, given their export potential and tax breaks,
a large number of them are now keen on exiting the projects or
seeking more time owing to the demand slump in rich nations.
"Owing to the change in the global perspective it would
be difficult to achieve exports envisaged at the time of
setting up of the SEZ units," Essar had requested.
Essar had set up four units at the SEZ to consolidate
steel exports in view of the buoyancy in the industry in 2006.
The developer has also stated that the units would opt
out of the SEZ scheme but continue to operate at the same
location under the Domestic Tariff Area (DTA) rules consequent
to the final exit permission.
The government has already allowed DLF and Maytas
Ventures among others to surrender their SEZs and given more
time to about 90 developers to execute their projects.
After de-notification of the SEZ the company could also
sell the produce, meant for exports, locally.
Globally both demand and prices of steel have plunged by
over 50 per cent in the October-December 2008 due to the
worldwide slump in off takes amid the economic downturn.
The BoA has also allowed one year extension to about 15
developers, including Jindal Stainless, to execute their SEZ
projects.
Jindal Stainless has approached for extension of the
validity period of formal approval beyond October 24, 2009,
for its sector-specific SEZ for stainless steel & ancillary/
downstream industry at Kalinga Nagar in Orissa.
The SEZs have attracted an investment of over Rs 1.10
lakh crore and exports from the units were valued at around Rs
1,00,000 crore in 2008-09.
PTI
First Published: Tuesday, December 15, 2009, 18:18