Vedanta Aluminium Ltd (VAL) has sought extension of SEZ (Special Economic Zone) benefits for its 1.25 million tonne aluminium smelter project at Jharsuguda.
VAL has already invested Rs 12,000 crore on the smelter complex. The project was set up as a sector specific SEZ for producing aluminium metal in line with the notification of the Union commerce ministry.
“We have been passing through great difficulties and are struggling to sustain our production in non-SEZ facilities. Despite incurring huge losses every day, we intend to start the SEZ facility immediately after we are extended the facilities,” Abhijit Pati, president and chief operating officer of VAL’s Jharsuguda unit wrote to Odisha chief secretary, J K Mohapatra.
The aluminium smelter plant is on the risk of turning unviable amid uncertainty in receipt of alumina from the company’s refining unit at Lanjigarh. The refinery is now running barely at 60 per cent capacity through procurement of bauxite from states like Gujarat, Chhattisgarh and Jharkhand. Between December 2012 and July 2013, when the refinery faced shutdown as bauxite sources dried up, the aluminium smelting unit had to depend entirely on imported alumina to maintain its operations.
The commissioning of VAL’s multi-product SEZ at Jharsuguda has been delayed considerably due to want of state specific SEZ policy. As a result, various government departments were unable to extend the SEZ benefits.
VAL said 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.
Since the Odisha government has granted its concurrence to grant the SEZ status to the smelter plant, VAL said, the state SEZ policy should be applicable to the establishment.
The company has also suggested that developing and setting up of downstream industries in the area adjoining to the smelter should be made mandatory.
On electricity duty exemption, VAL said, the exemption should be extended to processing and non-processing area within the SEZ. Since VAL is the developer of the zone, it has sought the status of deemed distribution licensee with respect to buying and selling of power within the SEZ in the interest of competitive cost of production.
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