The company has to seek this approval as procuring any material from outside SEZs is treated as imports.
Vedanta special economic zone (SEZ) in Odisha has sought governemnt permission to locally procure calcined petroleum coke for its unit to manufacture aluminium ingots and wire rod. The request of the company will be considered by the board of approval, the highest decision-making body on SEZs, in its meeting on November 15 here. The inter-ministerial board is chaired by the commerce secretary.
The company has to seek this approval as procuring any material from outside SEZs is treated as imports. SEZs are treated as foreign entities in terms of customs rules. Import of petroleum coke used for fuel purpose is prohibited. “The unit has requested for permission for local procurement of calcined petroleum coke for their authorised operations. But as per a notification…issued by the commerce ministry, petroleum coke is a prohibited item,” according to the agenda paper of the board. However, it said that the state pollution control board of Odisha has allowed the SEZ unit to buy this coke from indigenous source.
The unit requires this coke as one of the raw materials for their authorised operations to manufacture of aluminium ingots, wire rod and billet, it said.
Vedanta, an SEZ unit in Vedanta SEZ was granted letter of approval in April 2009 for manufacture of these products. The unit had commenced production in December 2015. According to SEZ rules, supply of restricted items to units in a SEZ from outside these zones can be allowed for setting up infrastructure facility and as a raw material for undertaking manufacturing operation, subject to approval of the board.
Development Commission of Falta SEZ has recommended the request of Vedanta, SEZ for local procurement of this coke. “The request is placed before the board for consideration,” it said. SEZs are major export hubs in the country as the government provides several incentives and single-window clearance system. Exports from these zones stood at over Rs 7 lakh crore in 2018-19.