MUMBAI: Mukesh Ambani led Reliance Industries (RIL) will make fresh investments of $8 billion for its mega petrochemical complex in the denotified area of the Jamnagar
SEZ as the company has sought government approval to de-notify 40% of the Jamnagar multi product SEZ.
Confirming the move, a source in the know told ToI, "The SEZ policy was enacted to provide tax benefits to boost exports and bring foreign exchange to India. Now, that government has introduced minimum alternate tax and dividend distribution tax on units and developers in the Union Budget for 2011-12, so its no longer lucrative." A RIL spokesperson declined to comment.
RIL's multi-product SEZ in Jamnagar, spread over 1764.14 hectares houses world's biggest refining capacity in a single location. The partial de-notification of an area of 728.43 hectares will leave the SEZ with area of 1035.72 hectares.
RIL has tied up for almost $5 billion of funds for the expansion of the mega-petrochemical complex in Jamnagar that is expected to double RIL's revenues and profitability in the next five years to make it leading low cost petrochemicals manufacturer in the world.
Apart from $8 billion investments in petrochemicals, RIL is spending another $4 billion to petroleum coke gasification project that will produce synthetic natural gas that will replace expensive LNG as fuel. Besides Jamnagar SEZ, RIL chairman Mukesh Ambani, who also owns significant stakes in Navi Mumbai SEZ (NMSEZ) and Maha-Mumbai SEZ (MMSEZ) is also looking to denotify these SEZ.
RIL shares on BSE closed down 0.5% at Rs 850.4 in a weak Mumbai market on Tuesday.
Source : timesofindia.indiatimes.com