The Union Government in the month of January 2013 had given its approval to Reliance Industries’ plans of de-notifying more than 40 per cent of its multi-product Special Economic Zone in Jamnagar subject to refund of all tax benefits it received for developing the area.
The company has also been asked to obtain a no-objection-certificate from the State Government of Gujarat.
It was in the second week of January that Reliance Industries (RIL) had applied for de-notification of over 40 per cent of its Special Economic Zone in Gujarat as it plans an investment of 45000 crore rupees in that area to cater to the domestic market.
RIL’s multi product SEZ is spread over 1764.14 hectares. The company wanted partial de-notification of an area of 728.43 hectares, leaving 1035.72 hectares of plan for the multi-product special economic zone.
Now, the clearance is subject to the company getting an NOC from the State Government and refunding all tax benefits it received for developing the de-notified area.
The developer has applied for partial de-notification so as to implement a number of new projects in the domestic tariff area in Jamnagar near the SEZ. The proposed projects will mainly cater to the significant existing domestic demand.
SEZ is going to retain its multi-product status as the total area would remain higher than the minimum required area of 1000 hectares. Even though the SEZ mainly comprises refineries, retaining the multi-product status will allow the company to invest in value-added products later, if it wants to.
It had been seen in the past that a number of SEZs have sought de-notification and cancellation of approval following the Government’s decision to impose the minimum alternate tax and dividend distribution tax on SEZ investors.