Anil Ambani’s SEZ Hits a Roadblock

May 25, 2007	(1 votes, average: 1 out of 5)  Loading ...
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The proposed 1,200 acre Special Economic Zone, promoted by Anil Ambani Group, has fallen into limbo due to the current political tug-of-war in Lucknow. The project was scheduled to come up in Noida.

The Uttar Pradesh Cabinet, chaired by new CM Mayawati, on Thursday put hurdles into the ongoing work of the project. The Cabinet decided to inform the Centre that the proposal did not meet the specific guidelines of a ‘contiguous land’.

The SEZ had earlier got a nod from Mulayam Singh government and was awaiting the approval from Central Government. The state government has expressed its reservations to the Centre over the project. The land norms did not meet the specifications under the proposed land acquisition for the project. Indeed, a road passes through the identified land, says UP cabinet secretary Shashank Shekhar Singh.

A three member committee headed by the principal secretary was formed to analyze by all the SEZ projects to come up in the state. There are a number of concessions given to SEZs comprising both the custom, excise, and tax breaks. If the shift in manufactured goods and services to be included in SEZ can be monitored, it can help in offering the concessions, adds Singh.

However, the Centre was in initial stages to determine its decision regarding the approval for the proposed SEZ. As far as the final approval is concerned, the Centre has not come as yet.  The government has sent reservations to the Centre on the proposed land site, explains Singh. Other projects to be taken up by the Hi-Tech City policy (as brought by the previous government) would also be analyzed.

Anil Ambani has some plans to come up with other projects in UP. The project concerning the 3,740 mw gas based power plant in Dadri, has already been put on hold due to some niggling issues over gas supply from Mukesh Ambani controlled Reliance Industries’ gas fields.  He had bought the Rosa Power Pant from the Aditya Birla Group last November.  REL has also signed a power purchase agreement (PPA) with the state government for the set up of the 600 MW Rosa Power Plant on 12 November 2006 itself.

News Published Under:   Special Economic Zones |