Sesa Sterlite seeks SEZ benefits to run aluminium SEZ

The state government had repealed its erstwhile SEZ policy, 2003 and was giving final shape to a new one

Sesa Sterlite Ltd (SSL), a unit of London listed mines and metals major Vedanta Resources Ltd, has urged the Odisha government to extend the benefits under the state's SEZ (Special Economic Zone) policy to run its idle aluminium SEZ at Jharsuguda.

It may be noted that the state government had repealed its erstwhile SEZ policy, 2003 and was giving final shape to a new SEZ policy.

"The delay in evolution of the new SEZ policy has adversely impacted SSL to start its additional capacity of aluminium SEZ smelter 2 which is lying idle since long as the advantages of SEZ policy as envisaged could not be availed. It is therefore requested to issue suitable directions to extend the benefits as envisaged under SEZ policy- 2003 to the new SEZ policy at the earliest so that the idle facility can be put into operation and thereby to generate employment and revenue for Odisha", Abhijit Pati, chief operating officer (aluminium & power), SSL wrote to the state chief secretary J K Mohapatra.

A meeting at the level of the chief secretary is scheduled for June 19 to discuss various issues pertaining to SSL.

Sesa Sterlite's 1.25 million tonne per annum (mtpa) aluminium smelter set up as a sector specific Special Economic Zone (SEZ) at Jharsuguda is lying idle presently. The commissioning of the SEZ at Jharsuguda has been delayed considerably due to want of state specific SEZ policy. Due to lack of the policy, various government departments were unable to extend the SEZ benefits.

The company has already invested Rs 12,000 crore on the smelter complex. Commissioning of the SEZ facility promised to boost the local economy by generating business potential worth Rs 15,000 crore every year. Direct and indirect employment opportunities for nearly 12,000 persons are set to be created.

The facility is also expected to develop local infrastructure besides boosting numerous small scale enterprises.