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.