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Union Commerce Ministry cancelled approvals of nine SEZs

Sep 30, 2014 19:07 IST

The Union Commerce Ministry on 29 September 2014 cancelled approvals of nine special economic zones (SEZs), including that of Hindalco Industries, Essar and Adani.

The decision was taken after it was found that no satisfactory progress was made to execute the projects since the grant of approvals to these SEZs.

The decision was taken in the meeting of the Board of Approval (BoA) headed by Union Commerce Secretary Rajeev Kher. Further, the board asked the developers to refund the duty benefits availed by them.

The other developers whose SEZs were cancelled include Chennai Business Park, Integrated Warehousing Kandla Project Development and Gujarat Industrial Development Corporation.

As per SEZ rules 2005, formal approval is valid for a period of three years, by which time at least one unit has to commence production and the zone becomes operational from the date of commencement of such production.

About the Projects

Hindalco Industries had proposed to set up an aluminium product SEZ in Orissa. The formal approval to the developer was granted in July 2007. The developer was granted extension from time to time and the last extension granted expired on 31 December 2013.

Essar Jamnagar SEZ, which had proposed to set up a multi-product zone in Gujarat, got formal approval in August 2006. It was expired in August 2009. The developer did not make any request for further extension of approval.

Similarly, Adani Townships & Real Estate Company had proposed an IT/ITeS zone in Gujarat. The BoA granted formal approval in June 2007, which expired in June 2010.

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