Revenue dept throws spanner in Adani group’s SEZ plan
The revenue department has raised concerns regarding the proximity of the project to the Mundra port and has questioned the developers about possible port activities in the SEZ.
By Amiti Sen & G Ganapathy Subramaniam, TNN |
NEW DELHI: The Adani Group’s plan to set up a multi-product special economic zone (SEZ) at Mundra in Gujarat is running into rough weather. The revenue department has raised concerns regarding the proximity of the project to the Mundra port and has questioned the developers about possible port activities in the SEZ.
As the project meets all other specifications laid down by the government, the board of approval (BoA) has said that formal approval to the SEZ would be subject to the revenue department not raising objections to it. Notification of SEZ status for project could be in jeopardy if the issues raised by the revenue department are not resolved.
According to commerce ministry officials, the Gujarat government as well as the developers have clarified that the proposal for the multi-product SEZ was one and not linked in any way to the existing port. It has further been stated by the developers that no port was likely to come up in the zone.
“We have forwarded the clarifications to the revenue department. We are waiting for their reactions, if any,” an official said. SEZ projects have to go through in-principle clearance and formal clearance before they are notified. If the formal clearance faces opposition, then notification of the project under the SEZ Act would be delayed.
The official said the Adani Group would be allowed to go ahead with the project if the revenue department does not voice concerns at this stage. The multi-product SEZ is to be spread over an area of 1,074 hectares. If the department of revenue raises any objection to the formal approval, the matter will be taken up in the next meeting of the BoA for discussion.
Officials said the revenue department has a number of objections and has written several letters to the department of commerce and the BoA. It has been emphasised that ports which handle non-SEZ cargo should not be made part of any SEZ project. Also, the revenue department does not want SEZ Act benefits for expansion of the Mundra port or additional infrastructure that may be set up there.
It is understood that the commerce and revenue departments are in discussion over a clear policy on port-based SEZs. While SEZ rules has been framed for such projects, the revenue department has reservations in allowing general cargo to be cleared at SEZ ports.
As the project meets all other specifications laid down by the government, the board of approval (BoA) has said that formal approval to the SEZ would be subject to the revenue department not raising objections to it. Notification of SEZ status for project could be in jeopardy if the issues raised by the revenue department are not resolved.
According to commerce ministry officials, the Gujarat government as well as the developers have clarified that the proposal for the multi-product SEZ was one and not linked in any way to the existing port. It has further been stated by the developers that no port was likely to come up in the zone.
“We have forwarded the clarifications to the revenue department. We are waiting for their reactions, if any,” an official said. SEZ projects have to go through in-principle clearance and formal clearance before they are notified. If the formal clearance faces opposition, then notification of the project under the SEZ Act would be delayed.
The official said the Adani Group would be allowed to go ahead with the project if the revenue department does not voice concerns at this stage. The multi-product SEZ is to be spread over an area of 1,074 hectares. If the department of revenue raises any objection to the formal approval, the matter will be taken up in the next meeting of the BoA for discussion.
Officials said the revenue department has a number of objections and has written several letters to the department of commerce and the BoA. It has been emphasised that ports which handle non-SEZ cargo should not be made part of any SEZ project. Also, the revenue department does not want SEZ Act benefits for expansion of the Mundra port or additional infrastructure that may be set up there.
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It is understood that the commerce and revenue departments are in discussion over a clear policy on port-based SEZs. While SEZ rules has been framed for such projects, the revenue department has reservations in allowing general cargo to be cleared at SEZ ports.
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