Adani Requests Partial De-Notification of Mundra Multi-Product SEZ

25 Jan 2025 CW Team

The proposal will be examined during a meeting of the Board of Approval, which is the highest decision-making body for SEZs. This board, chaired by Commerce Secretary Sunil Barthwal, will meet tomorrow. According to the agenda of the meeting, APSEZ has requested the de-notification of 333.7396 hectares out of the total 8282.7670 hectares. The developer stated that due to intense competition in the solar market and the significant dumping of solar equipment into India, the units in the Electronics Manufacturing Cluster (EMC) have become economically unviable within the SEZ.

The developer further explained that to survive in this challenging market, it has become essential for these units to exit the SEZ. Consequently, the units in the EMC area have expressed their desire to cease operations within the SEZ framework. As a result, Mundra Solar Technopark, the co-developer, has requested the developer to de-notify the EMC area from the SEZ on an "as-is-where-is" basis.

The Gujarat government has no objections to the proposal and has asked for the processing of the partial de-notification application. The development commissioner of APSEZ has also urged the board to consider the proposal.

According to the SEZ Rules of 2006, the central government may modify, withdraw, or rescind the notification of an SEZ based on the recommendation of the Board, provided it is satisfied with the developer's application.

Additionally, the inter-ministerial board will review a proposal from Mundra Petrochem Ltd, APSEZ, Mundra, seeking a one-year extension for the grant of a Letter of Approval (LOA). Although the LOA was issued in December 2021, the project’s commencement and commissioning were delayed due to the COVID-19 pandemic and other issues. However, the project activities are now progressing at full speed.

SEZs are critical export hubs, accounting for over one-third of the country’s total outbound shipments in the previous fiscal year. These zones are treated as foreign territories for trade and customs duties, with restrictions on duty-free sales in the domestic market. The government has approved 423 such zones, 280 of which are operational, with 5,711 units approved in these zones.

Exports from these zones increased by over 4 per cent to $163.69 billion in 2023-24.

News source: Business Standard

Adani Ports & Special Economic Zone (APSEZ) has approached the Centre requesting the partial de-notification of its multi-product Special Economic Zone (SEZ) in Mundra, Gujarat. The commerce ministry is set to review the proposal on Friday. The proposal will be examined during a meeting of the Board of Approval, which is the highest decision-making body for SEZs. This board, chaired by Commerce Secretary Sunil Barthwal, will meet tomorrow. According to the agenda of the meeting, APSEZ has requested the de-notification of 333.7396 hectares out of the total 8282.7670 hectares. The developer stated that due to intense competition in the solar market and the significant dumping of solar equipment into India, the units in the Electronics Manufacturing Cluster (EMC) have become economically unviable within the SEZ. The developer further explained that to survive in this challenging market, it has become essential for these units to exit the SEZ. Consequently, the units in the EMC area have expressed their desire to cease operations within the SEZ framework. As a result, Mundra Solar Technopark, the co-developer, has requested the developer to de-notify the EMC area from the SEZ on an as-is-where-is basis. The Gujarat government has no objections to the proposal and has asked for the processing of the partial de-notification application. The development commissioner of APSEZ has also urged the board to consider the proposal. According to the SEZ Rules of 2006, the central government may modify, withdraw, or rescind the notification of an SEZ based on the recommendation of the Board, provided it is satisfied with the developer's application. Additionally, the inter-ministerial board will review a proposal from Mundra Petrochem Ltd, APSEZ, Mundra, seeking a one-year extension for the grant of a Letter of Approval (LOA). Although the LOA was issued in December 2021, the project’s commencement and commissioning were delayed due to the COVID-19 pandemic and other issues. However, the project activities are now progressing at full speed. SEZs are critical export hubs, accounting for over one-third of the country’s total outbound shipments in the previous fiscal year. These zones are treated as foreign territories for trade and customs duties, with restrictions on duty-free sales in the domestic market. The government has approved 423 such zones, 280 of which are operational, with 5,711 units approved in these zones. Exports from these zones increased by over 4 per cent to $163.69 billion in 2023-24. News source: Business Standard

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