Post News Network
New Delhi, Jan 11: In a setback to Vedanta Aluminium Ltd (VAL), Centre has rejected VAL’s proposal for procurement of Bogie Alumina Tank Wagons (BTAP) for its alumina refinery at Jharsuguda Special Economic Zone (SEZ) in Orissa. BTAP are specially designed for transportation of alumina powder.
The Board of Approval (BoA) for SEZs under the union Commerce and Industry ministry has rejected an application of the company due to objections raised by department of revenue under the Finance Ministry. Officials of revenue department observed that goods sought for exemption are an integral part of a transport vehicle to be used out of SEZ, so will be prone to misuse, difficult to administer and huge revenue stakes involved.
The VAL has invested around Rs 12,000 crore on its refinery plant and it has formal approval as a SEZ till May 2016. The BTAP wagon is not a vehicle, which is totally different from a normal wagon. Its use is restricted to only carrying the prime raw material (Calcined Alumina) to the SEZ from the refinery plant. The total value of BTAP wagon is estimated to be Rs 60 crore. Vedanta Aluminium Ltd had earlier represented that Bogie Alumina Tank Wagons (BTAP) will be exclusively used for their SEZ.
