Govt gives clean chit to Essar and Adani SEZs

New Delhi: The empowered group of ministers (eGoM) on special economic zones (SEZs) has given a clean chit to Essar's steel SEZ in Hazira and Adani's port SEZ in Mundra.

Speaking on this, a government official said, “The EGoM has taken a stand favouring the SEZs. The zones will not have to be de-notified.”

With this, the total land area for the combined SEZ has increased to more than 5,000 hectares, which is more than the present land ceiling. However, the eGoM made it very clear that the port SEZ would not be eligible for tax sops for the area falling inside the port, which is an old construction.

Earlier, the finance ministry had alleged that these SEZs had violated of the rules regarding vacancy of land. As per the SEZ rules, a developer has to file an affidavit stating that the land area of the zone is completely vacant and without any kind of industrial activity when the application is filed.

Headed by External Affairs Minister Pranab Mukherjee, the eGoM, has has Finance Minister P Chidambaram and Commerce Minister Kamal Nath as members, amongst others.

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