Adani Group demanded change of notification of Mundra-based SEZ
New Delhi| Adani Ports and Special Economic Zone Limited has approached the Center to partially cancel the notification of its multi-product SEZ in Mundra, Gujarat. It is reported that the Commerce Ministry will consider this proposal on Friday. This proposal will be discussed in the meeting of the Approval Board, the highest decision making body for Special Economic Zones (SEZs). The board meeting will be held here tomorrow under the chairmanship of Commerce Secretary Sunil Barthwal.
According to the agenda of the meeting, “Adani Ports and Special Economic Zone (APSEZ) Limited has requested partial notification cancellation of 333.7396 hectares out of 8282.7670 hectares”. Explaining the reasons, the developer has said that due to tough competition in the solar market and heavy dumping of solar equipment in India, units of EMC (Electronics Manufacturing Cluster) are becoming economically impractical within SEZs The group said that it has become necessary for these units to exit SEZs to survive in this difficult market.
“Component units in the EMC area have expressed their desire not to continue their operations in SEZ format”, the proposal said. Co-developer Mundra Solar Technopark has therefore requested the developer to separate the EMC area from the SEZ on the basis of where it is The Gujarat government has not raised any objection to the proposal and has requested to process the application for cancellation of partial notification. The Development Commissioner of APSEZ has also requested the Board to consider this proposal.
According to the SEZ Rules, 2006, if the Central Government is satisfied it may modify the notification of the SEZ following the recommendation of the Board on the application made on behalf of the developer, or withdraw it or repeal it. Apart from this, the Inter-Ministerial Board will also consider the proposal for extension of LOA (Approval Letter) of Mundra Petrochem Limited, APSEZ, Mundra for one year.
The agenda of the meeting stated that although the LOA was released in December 2021, the start and commissioning of the project was rescheduled due to the Covid pandemic and other issues. Now the project activities are going on in full swing.
Special Economic Zones (SEZs) are major export hubs, contributing more than a third of the country’s total exports in the last financial year. Exclusive economic zones are zones considered as overseas territories for trade and customs, and there is a prohibition on duty-free sales to the domestic market outside these zones. The Government has approved 423 such zones, of which 280 are operational. There are 5,711 units approved in these zones. Exports from these sectors increased by more than 4 percent to US$163.69 billion in 2023-24.
