Partial de-notification of RIL SEZ approved by the Govt

Union Government gave nod to Reliance Industries’ plans of de-notifying more than 40 % of its multi-product Special Economic Zone (SEZ) in Jamnagar subject to refund of all tax benefits it got for developing the area. However, the multi-product status of SEZ will remain intact as the total area would remain higher than the minimum required area of 1,000 hectares. The Govt has asked the company to get a no-objection-certificate from the Government of Gujarat.
The Board of Approval, which takes most decisions regarding the establishing and operation of SEZs, approved  RIL’s proposal to denotify 728.43 hectares, reducing the total area of its Jamnagar SEZ to 1035.72 hectares. However, the multi-product status of SEZ will remain intact as the total area would remain higher than the minimum required area of 1,000 hectares.
Why this de-notification?
RIL had applied for de-notifying about 40 % of its SEZ spanned over 1764.14 hectares as it intends to build new projects in the area with investments up to Rs 42,000 crore. Apart from Reliance, a number of SEZs have applied for de-notification and cancellation of approval following the Government’s decision to levy the minimum alternate tax and dividend distribution tax on SEZ investors.

Month: Current Affairs - January, 2013