Metal sector SEZ developers asked to set up downstream parks

Investors in metal sectors like steel, aluminium and ferroalloys with outlays exceeding Rs 1,000 crore need to establish downstream parks if they want to put up their projects in Special Economic Zones (SEZs).

The SEZ policy recently released by the state government says the downstream parks have to be put up on an area of at least 200 acres.

"For metal processing industries such a downstream park should be located adjoining the metal producing plant with arrangement for supply of molten metal. The basic infrastructure of downstream park such as road, power, water supply, drainage and other common utilities shall be provided by the SEZ developer", the policy says.

The mineral based SEZs already approved would undertake to develop/promote related downstream industrial complex over a minimum area as prescribed by the government. In the event of non-compliance of the condition, all state concessions would be withdrawn.

According to the policy, the state shall not encourage SEZs based on activities like minerals and mining that causes pollution hazards. The Odisha State Pollution Control Board (OSPCB) shall prepare a list of such industries and the same would be notified by the state government as a negative list.

The SEZ policy accords special thrust on sectors like information technology (IT), IT enabled services (ITes), electronics system design and manufacturing (ESDM), automobile and auto component manufacturing, heavy and light engineering goods, leather, textiles, handloom, pharmaceuticals, gems and jewellery, ship building and agro & food processing.

The regulation of land use within the SEZ shall be in accordance with the guidelines provided under the SEZ Act and Rules, subject to the condition that minimum 50 per cent of the SEZ notified area is utilised as processing area in respect of both sector-specific and multi-product SEZs. The non-processing area would be used appropriately for creating social infrastructure for the SEZ units and their employees. Both the SEZ developer and the units would incorporate rain water harvesting mechanism as an integral part of their constructions in both processing and non-processing zones.

The government land, Odisha Industrial Infrastructure Development Corporation (Idco) land and private land acquired by the government or any of its agencies would be transferred to the SEZ developer on lease hold basis.

Government land would be provided to SEZ developers at concessional rates while Idco land would be leased as per the applicable rates. Similarly, for SEZ proposals within limits of Bhubaneswar Municipal Corporation (BMC) and Cuttack Municipal Corporation (CMC), government land would be given at rates notified by the government. The SEZ developer would be competent to transfer the land by way of sub-lease to persons/entrepreneurs who hold a valid letter of approval issued by the Development Commissioner. The developer has the right to take back land if it remains unutilised for five years.