Reliance request for multi-product tag on Jamnagar SEZ goes to law ministry

AMITI SEN & G GANAPATHY SUBRAMANIAM

TIMES NEWS NETWORK[ TUESDAY, NOVEMBER 07, 2006 12:21:51 AM]

NEW DELHI: Reliance group is planning to convert its sector-specific
special economic zone (SEZ) at Jamnagar in Gujarat into a multi-product
SEZ.

The Mukesh Ambani group company has sought permission from the
government for the conversion so that provisions could be made to
include industries other than refineries. Reliance is looking at
inclusion of petrochemical and heavy manufacturing units in the Jamnagar
project, highly-placed government sources said.

The Board of Approval (BoA), which clears SEZs, is looking into an
application from Reliance Infrastructure for converting the
product-specific SEZ into a multi-product SEZ, sources said. Reliance is
already setting up two multi-product SEZs near Mumbai and the scope of
the Jamnagar project is also being expanded now. When contacted, a
Reliance spokesperson declined to comment. Industry sources said the
company was making provisions to accommodate key partners, including
foreign companies, at the Jamnagar SEZ.

Government sources said the BoA has referred the issue to the law
ministry, as some aspects related to ‘contiguity’ of land area need to
be addressed. It is understood that some railway lines pass through the
area and Reliance has to fence them and ensure secure access in line
with SEZ rules. At the same time, seamless contiguity needs to be
maintained to ensure that infrastructure bottlenecks do not bother SEZ
units.

The minimum land requirement for multi-project SEZs is much larger than
sector-specific projects. Therefore, Reliance is acquiring more land
now. The matter has been referred to the law ministry, which will decide
whether the contiguity norms for the project could be relaxed,
government sources said.

In March ’05, the BoA had granted formal approval to the Reliance
Jamnagar petroleum and petrochemical SEZ on an area of 440 hectares. The
company has also been given an in-principal approval for its expansion
in a multi-product SEZ as and when the minimum area of 1,000 hectares is
acquired by the developer. The final approval, however, will be granted
only after the land acquisition is completed.

http://economictimes.indiatimes.com/articleshow/347047.cms