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The Board of Approvals (BoA) under the Union commerce & industry ministry would consider the proposal for extending the validity of product specific Special Economic Zone (SEZ) by Vedanta Ltd at Jharsuguda.
The validity of the notified SEZ is lapsing on May 22 this year. The BoA is scheduled to meet on May 19. The development commissioner, Falta SEZ recommended extension of Vedanta's SEZ till May 22, 2016. Formal approval for the SEZ was granted on May 23, 2007. Since then, the developer has been given five extensions. 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 has been delayed considerably due to want of SEZ policy at the state level. Due to lack of the policy, various government departments were unable to extend the SEZ benefits.
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.
The facility is also expected to develop local infrastructure besides boosting numerous small scale enterprises.
Since the Odisha government has granted its consent to grant the SEZ status to the smelter plant, Vedanta is of the view that the state SEZ policy should be applicable to the establishment. The company had also suggested that developing and setting up of downstream industries in the area adjoining to the smelter should be made mandatory.
