Board of Approval on SEZ tomorrow to decide fate of Posco, Vedanta projects

 The government will tomorrow consider different requests of 14 developers including Posco,Vedanta Aluminium, on their SEZ projects. 

Navi Mumbai SEZ Ltd, Cochin Port Trust and Ansal IT City and Parks Ltd have also requested additional time for project implementation from the Board of Approval (BoA), headed by Commerce Secretary Rahul Khullar, the commerce ministry said. 

The BoA, a 19-member inter-ministerial body that deals with special economic zone (SEZ) related matters, would also consider four de-notification cases. Bajaj Holdings and Investment Ltd wants to surrender its engineering SEZ due to uncertain taxation scenario. 

Besides, seven developers including Infosys Ltd, Jubilant Infrastructure Ltd and Tata Consultancy Services Ltd have approached the government to set up new zones. 

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. 

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. 

Further the Board would also consider an application of Reliance Industries, that wants to buy Cairn India's Rajasthan crude oil for processing at its only-for-exports Jamnagar refinery in Gujarat. 

Any sale to a SEZ or only-for-exports unit is considered outward shipment or exports out of India. The current policy does not allow export of domestically produced crude oil. 

Besides, Pipavav Defence and Offshore Engineering Company Ltd have sought Centre's nod to procure restricted items and navigational wireless communication equipment for manufacture of some specific type of vessels and warships for Indian Navy. The unit is in a engineering SEZ in Gujarat.