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The Board of Approvals for Special Economic Zones (SEZs) under Union commerce & industry ministry has extended the validity of Vedanta Ltd's product specific SEZ at Jharsuguda by one year.
The BoA has granted the extension to the developer at a recent meeting. The validity of the SEZ has been extended till May 22, 2016.
Earlier, the development commissioner, Falta SEZ had recommended the Vedanta's case to BoA. Formal approval for the SEZ was granted on May 23, 2007.
Vedanta claimed to have completed 95 per cent work on the SEZ and hopes to complete the unfinished work by May 22 next year. Vedanta's product specific SEZ includes an aluminium smelter complex where the proponent has already invested Rs 12,000 crore.
The project was set up as a sector specific SEZ for producing aluminium metal in line with the notification of the Union commerce ministry.
The commissioning of the SEZ at Jharsuguda was delayed considerably due to non-finalization of SEZ policy at the state level. With the state cabinet recently approving a new state specific SEZ policy, Vedanta's SEZ can avail tax sops.
Besides, Vedanta had requested the state government to allow use of power from its 2,400 Mw coal-fired plant at Bhurkamunda near Jharsuguda for feeding the smelter. However, the state government is yet to take a call on the issue.
The commissioning of the SEZ facility promised to boost the local economy by generating business potential worth Rs 15,000 crore every year and creating direct and indirect employment opportunities for nearly 12,000 persons. Aluminium production from the SEZ is set to create more than 100 ancillary and downstream industries around the smelter unit.
The facility is also expected to develop local infrastructure besides boosting numerous small scale enterprises.
