Adani's proposal for multi-product SEZ in Mundra under scanner.

The Government will take up the amended proposal submitted by Adani Port SEZ Ltd. (APSEZL) for setting up a multi-product special economic zone in Mundra, Gujarat, this week.

The amended proposal involves developing a fenced dedicated road corridor for cargo movement from the domestic tariff area (outside the existing SEZ) to the proposed SEZ.

The Directorate General of Export Promotion, which examined the revised proposal, in its report to the Development Commissioner of the zones last December, pointed out that certain issues still need to be resolved to address all concerns of the revenue department. 'APSEZL has submitted a fresh proposal keeping in mind the concerns raised by the revenue department on proper separation of the duty free areas of the zone from other areas so that there is no revenue leakage,' a Commerce Ministry official told BusinessLine.

'We are hopeful that the report on delineation will be available before the BoA (Board of Approval) and the issue of independent access will be suitably addressed. The decision of the BoA would hinge on this,' the official said.

A decision on the proposal has been deferred several times over the last year and a half due to lack of clarity on issues such as independent access to the proposed zone, proper delineation of the zone and security matters which could lead to revenue leakages.

The revenue department had expressed apprehensions about lack of proper information on how the company would ensure independent access to the zone spread over 1,856 hectares and properly seal off various parts, including the ports, in a way that the duty-free enclave is not misused.

The BoA for SEZs, which is scheduled to meet on February 20, will take a fresh call on the proposal based on reports by the development commissioner of the zone and the Commerce Ministry on delineation following submission of the amended proposal by the company last October.

It said the Commerce Department had not yet issued any order indicating that delineation of the built-up area in the port has been completed.

It added independent access to the proposed SEZ is yet to be established and the developer has to complete it before the land parcels can be formally approved as SEZ.


HBL