19 Sep 2012 2:34 PM from CapEx
Suparna Chattopadhyay

Pradip Overseas drops textile SEZ project at Bhamasra, Gujarat

Six coal blocks de-allocated

Pradip Overseas has dropped its plans to develop a textile special economic zone (SEZ) at Bhamasra near Ahmedabad, Gujarat. The project was shelved due to poor response from the textile manufacturers and the recent changes in tax conditions for SEZs. Specially, imposing of the 18.5% minimum alternate tax (MAT) on SEZs. The company has approached the Board of Approvals (BoA) to cancel the formal approval given to the company in August 2008. The project was yet to receive the SEZ notification from the BoA.

The Rs.20 billion project was announced in August 2008 and the company had signed a Memorandum of Understanding (MoU) with the Government of Gujarat during the Vibrant Gujarat investment festival of 2009 in January 2009. The SEZ was to be built over an area of 247 acres, out of which the company had already acquired 241.89 acres in October 2009 and was planning to commission the project by June 2011. However, construction work on the project never began as around 32 acres were yet to be acquired and Paradip Overseas was looking for contractors to develop the SEZ.

Pradip Overseas has now proposed to develop the site as an industrial park. It plans to begin work on the site by November 2012 and commission the park by December 2014. According to information provided by one of the technical Directors of Pradip Overseas the park will have 65 units from various sectors of industries like textile, automobile, engineering, plastic and capital goods. Once commissioned it will provide employment opportunities to around 11,000 people.

Two captive power projects were shelved during the week ended 19 September 2012. Ispat Energy shelved the 270 mw captive power project which was to come up at Dolvi in Raigarh district, Maharashtra. The Rs.10 billion project was proposed by the company in January 2006. BSL Ltd has dropped its plan to come up with a 6 mw captive power plant at Mandapam in Bhilwara district, Rajasthan.

Government Of Himachal Pradesh's fish seed farm project at Pong dam in Himachal Pradesh was scrapped due to unavailability of land. The project was announced in January 2010.

Ten projects worth Rs.31 billion were shelved during the week ended 12 September 2012, including the above four. Six coal blocks were de-allocated by the Central Government on the recommendation of a inter-ministerial group (IMG). IMG is scrutinising 29 coal blocks awarded to private companies.

  • Gourangdih Coal Ltd's coal block project at Gourangdih in Puruliya district, West Bengal. The mining project was stalled due to de- allocation of the coal block by the Central Government. The coal block was jointly awarded to JSW Steel and Himachal Emta Power Ltd. In May 2012, the Ministry of Coal had issued a show cause notice to Gourangdih Coal for delay in development of the coal block.

  • SKS Ispat & Power Ltd's coal mining project at Pench-Kanhan valley in Chhindwara district, Madhya Pradesh. The coal block was allotted to the company in May 2007. The Ministry of Coal had issued a show cause notice to SKS Ispat in November 2010 for inordinate delay in development of the Rawanwara north coal block.

  • Field Mining & Ispats Ltd's Chinora Warora (Southern Part) coal block project at Wardha, Maharashtra. The block was allocated to the company in October 2003.

  • Bhushan Steel's Patrapara coal mine project at Khorda district, Orissa. The Ministry of Coal had issued show cause notice to the company twice once in March 2011 and then in July 2012 for delay in execution of the mining project. The coal block was allocated to the company in January 2006.

  • Castron Mining's Bramhadih coal block project at Pachamba in Giridih district Jharkhand. The coal block was allocated to the company in September 1999. Ministry of Coal had issued show cause notice to the company for delay in development of the coal block in May 2012.

  • Domco Smokeless Fuels Pvt Ltd's - Lalgarh (North) coal block project at Bokaro (west) in Hazaribagh district, Jharkhand. The company was issued a show cause notice by the Ministry of Coal in September 2010 for delay in development of the coal block. The coal block was allocated to Domco in July 2005.