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Jindal Steel may be allowed to surrender its steel SEZ in Orissa

Press Trust of India  |  New Delhi 

Jindal Steel Limited of the OP Jindal group may be allowed to withdraw its stainless steel Special Economic Zone in Orissa if the company gives a bank guarantee to return the tax benefits already availed by it.

The proposal will come up before the Board of Approval (BoA) in the Commerce Ministry at its meeting scheduled for May 31.

The JSL, the largest stainless steel producer in the country, has already refunded to the government Rs 101 crore, which it had availed of due to the SEZ status for its proposed project at Kalinga Nagar. However, the dues on account of exemptions of the Central Sales Tax (CST) are yet to be recovered, for which a bank guarantee is proposed by the government.

The SEZs enjoy a host of exemptions on taxes,including customs duty, excise,service tax, entry tax and Duty Entitlement Pass Book (DEPB).

Meanwhile, the BoA will also take up 8 proposals for denotification.

As many as 62 developers have approached the board seeking extra time to executive their projects. The developers which have sought more time include Satyam Computer Services and Maharashtra Industrial Development Corporation.

Exports from SEZs grew 43.11% year-on-year to Rs 3.15 lakh crore in FY11.

The sector has provided employment to 6 lakh people as on March 31.

Out of 377 notified SEZs, 133 are in operation.

At present, the units in these zones enjoy 100% tax exemption on their income for the first five years and 50% in the next five years.

First Published: Thu, May 26 2011. 17:37 IST