Two Jindal firms to surrender steel SEZs, on low export scene

Jindal Stainless, now known as JSL Stainless Ltd, and JSW Bengal Steel have decided to surrender their SEZs in Orissa and West Bengal. JSL has approached the Commerce Ministry to surrender sector specific SEZ, planned on over 142.11 hectare in Kalinga. It was notified in November 2007 and a single anchor unit has been setup there.

"The developer (JSL) has requested for de-notification of the SEZ, stating that due to global meltdown and recession for stainless steel and its products, the exports may not reach the desired levels to make the zone viable," a Commerce Ministry official said. The inter-ministerial Board of Approval (BoA) headed by Commerce Secretary Rahul Khullar would consider the request on September 16, the official said.

In the application for de-notification, JSL informed that it has availed tax benefits amounting to about Rs 59.78 crore under SEZ Act. SEZs, which are set up for export purpose, enjoy host of tax benefits. Government allows developers to surrender their SEZ status provided they return the duty benefits availed.

Meanwhile, JSW Bengal Steel Ltd, which has planned steel plant in West Bengal has approached the BoA for withdrawal of the formal approval for a sector specific SEZ at over 1,804 hectares. "In the changed global economic scenario, it is not interested in the development of the SEZ," the developer said in its application.
So far, the government has scrapped about 18 SEZs, including those of DLF and Essar.