Reliance Industries Ltd (RIL) has sought the Centre’s permission to build more structures at its Jamnagar Special Economic Zone (SEZ) for improving connectivity between a refinery and its upcoming Rs 20,000-crore chemicals complex, both located outside the zone.
Encouraged by the Government’s approval last year for a pipeline through the SEZ for transporting gas from the refinery to the chemicals complex, the Mukesh Ambani-led company has now sought nod for building an elevated structure and two underpasses.
Since the shortest route connecting the refinery and the complex is through the SEZ, an alternative route would cause project delay and higher costs, the company has claimed.
The matter will be taken up by the Board of Approval for SEZs, the top decision-making body for the zones, in a meeting on Friday. “The Development Commissioner (of the SEZ) has carried out physical inspection of the area and recommended the proposal taking into account the quantum of investment proposed by the firm and also the fact that execution of these facilities would neither impact the contiguity nor the operations of the SEZ,” a Commerce Department official told
RIL needs special permission to build the structures 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. According to RIL’s proposal, erection of the elevated structure would require around 50 foundation footings or pillars to be constructed in the SEZ area. These would not affect the contiguity or free movement within the SEZ, it has assured. The two underpasses are to be constructed below the existing rail line and the SEZ Road.
RIL proposes to invest Rs 20,000 crore in the production complex in the domestic tariff area outside the zone for producing chemicals such as ethylene. The Board of Approval, in its meeting, will take a call on whether the size of the project would justify making further relaxations. The board, comprising officials from commerce, finance, agriculture and home ministries, had taken its time before approving the connecting pipelines through the Jamnagar SEZ last year.
“While the argument in support is that the Government should encourage big investments, the one against it is that the existing SEZ norms should not be flouted,” the official added.
amiti.sen@thehindu.co.in