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The Government will once again take up for consideration Reliance India Ltd’s (RIL) request to lay a pipe rack through its Jamnagar Special Economic Zone (SEZ) connecting a refinery and a chemicals complex, both located outside the zone.
The Board of Approval (BoA) for SEZs, which had deferred a decision on the issue in its last meeting, will deliberate further on the matter when it meets on June 12. It is likely to base its decision on the technical justification of the project as attested by an independent engineer, and the recommendations made by the Development Commissioner of the SEZ, a Commerce Department official told Business Line . “The BoA had deferred the matter last time as it wanted the Commerce Department to examine it further. In order to verify the reasons the company had cited for the unusual request, the Development Commissioner of the SEZ asked RIL for complete technical justification of the request, duly certified by an independent chartered engineer,” said the official.
RIL had proposed that it be allowed to transport gas from a refinery outside the zone to its proposed Rs 20,000 crore chemicals complex, also outside the zone, by being granted right of way through the notified RIL SEZ. The company said it was the shortest route and an alternate route would cause project delay, technical problems and higher cost.
GOVT CONCERNS
The Government is taking its time in giving its approval to the proposal as an SEZ is a deemed foreign area where all activities are governed by laws and rules prescribed in the SEZ policy. There is no provision in the policy to allow the zone to be used for creating infrastructure supporting units outside the zone.
The SEZ’s Commissioner, in ahis submission, has recommended that the developer be given permission.
It endorsed the engineer’s recommendations that the pipeline should be as straight as possible, with as few joints and bends as possible, and that it be located away from busy roads and residential areas. He contented that this pipe rack will run parallel to the existing SEZ pipe racks and will not impede movement within the zone.
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