Essar approaches govt to surrender 'steel' SEZ

Essar approaches govt to surrender 'steel' SEZ

While industrial houses were clamouring for SEZ projects a few years ago, given their export potential and tax breaks, a large number of them are now keen on exiting these projects owing to the demand slump in developed countries.
Government has already allowed DLF and Maytas Ventures, besides others to surrender their SEZs.

"Owing to the change in the global perspective it would be difficult to achieve exports envisaged at the time of setting up of the SEZ units," Essar has said in the application before the inter-ministerial Board of Approval (BoA) headed by Commerce Secretary Rahul Khullar.

Essar had set up four units at the SEZ in Hazira to consolidate the steel exports in view of the buoyancy in the steel industry in year 2006.
The developer has also stated that the units would opt out of the SEZ scheme but continue to operate at the same location under the Domestic Tariff Area (DTA) rules consequent to the final exit permission.

The BoA would take up the developer's request for de-notification of the notified sector specific SEZ for engineering on December 15, a Commerce Ministry official said.

Global steel demand and prices plunged by over 50 per cent in the October-December 2008 due to the worldwide slump in off takes amid the economic downturn.