New Delhi: Adani Ports & Special Economic Zone Ltd has approached the Centre for partial de-notification of its multi-product SEZ in Mundra, Gujarat, and the proposal will be taken up by the commerce ministry on Friday.
The proposal will be discussed in the meeting of the Board of Approval, the highest decision-making body for special economic zones (SEZs). The board, headed by Commerce Secretary Sunil Barthwal, will meet here tomorrow.
“Adani Ports & Special Economic Zone (APSEZ) Ltd has requested for partial de-notification of 333.7396 out of 8282.7670 Ha. As regards reasons, the developer has submitted that due to stiff competition in the solar market and severe dumping of solar equipment into India, the units in EMC (Electronics Manufacturing Cluster) are becoming economically unviable within the SEZ,” according to the agenda of the meeting.
Agenda papers for the meeting, however, showed that Adani Ports is yet to secure Gujarat government’s recommendation approving the tax free zone.
The company declined to comment on the matter.
In October last year, the government cancelled the 1,840-hectare, multi-product SEZ being developed by the Gujarat-based Adani Group firm at Mundra, citing violation of various SEZ norms.
They included not conforming to contiguity norms and violating the rule that requires the tax-free zone site to be vacant before approval is sought. The site was land-locked without means of proper transport at the time of cancellation.
Under the contiguity norms for the SEZs, a developer is required to develop the zone on a single tract of land. Besides, the land should be vacant.
The government had inspected the site before arriving at the final decision.
Adani group sources said that their senior officials held several meetings with government officials and the contiguity and other related issues have now been resolved.
Accordingly, 16 hectares of land have been added to the denotified SEZ to resolve the issues and Adani Ports is hopeful of securing the government clearance, they added.
Mundra is the base for Adani Ports as it operates its flagship port from here, besides the existing and proposed new SEZ. During the first quarter of the current fiscal, Mundra Port became the largest domestic port in the country in terms of cargo handling.
