Govt to introduce clause in SEZ rules

  • 20/06/2008

  • Asian Age (New Delhi)

Palash Kumar A separate clause is being introduced in Rule 19 of the SEZ rules as 19(8) to allow the government to set up its project to build strategic oil reserves on SEZ land without the mandatory export condition. The new clause reads as follows: "In the case of units set up by or on behalf of the Central government as strategic to national interest and certified as such by the concerned department of the Central government, the Board of Approval may relax notwithstanding any other provision of these rules, any or all conditions of the letter of approval, including, the requirement of net foreign exchange export obligations and period of validity." It remains to be seen how the private sector companies will react to this selective amendment. In a letter to the law ministry, the commerce ministry had sought a waiver of this condition, saying, "Since it is not possible to fix a time-scale for storing the crude oil and its release in emergent situations, it will not be possible for the project to earn positive net foreign exchange from the operation of the reserve." It further stated that "ISPRL (Indian Strategic Petroleum Reserve Ltd) is not, therefore, in a position to make a commitment on exports of crude oil for a period of five years from commencement of the project. Ministry of petroleum, therefore, requests for a waiver of the conditions in the interest of energy security of the country."