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Govt may tweak SEZ rule after Navi Mumbai plea.


Date: 06-11-2009
Subject: Govt may tweak SEZ rule after Navi Mumbai plea
NEW DELHI: The government has said it is considering relaxation in some key rules relating to construction of bridges and underpasses in special economic zones (SEZs) following a request by the Navi Mumbai SEZ, promoted by RIL chief Mukesh Ambani’s aide Anand Jain.

The current rules require a developer to build over-bridges and underpasses in an SEZ zone across roads and railway lines running through it before units are allowed to come up in the zone.

The government wants to ensure that the zones are sealed properly to ensure no smuggling of goods takes place. The 1234-hectare Navi Mumbai SEZ had proposed that it should be allowed to construct two skywalks instead of the flyovers. It has also proposed that the condition for construction of underpasses be relaxed for which it suggested secured connectivity on the ground.

The Centre has asked the development commissioner of the zone to examine the suggestions. “The developers have submitted an alternative plan for contiguity requirement of the multi-product zone. It was discussed and agreed that the development and the chief commissioner will have a joint meeting,” DK Mittal, additional secretary in the commerce ministry told reporters. He added that a cost-effective solution will be worked out.

However, a request by Mukesh Ambani-owned Maha Mumbai SEZ in Raigad for a third extension of the in-principle approval granted to it in 2006 was turned down by the board of approvals. “They have to a file a fresh application. A fresh recommendation is also required from the state government,” said Mr Mittal.

The BoA, headed by commerce secretary Rahul Khullar, also permitted 10 developers to withdraw their SEZ approvals following requests from them that they could not execute the projects following the slowdown-driven slump in demand.

Source : The Economic Times

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