With tweak in SEZ rules, Adani group firm gets Rs 500-crore bonus

In August, the government decided to change the rules relating to special economic zones that allowed an Adani group company to benefit from a bonus of around Rs 500 crore. While a predictable and correct Adani Group representative stated that the company had done nothing wrong or illegal, senior officials of the Ministry of Finance (including Finance Minister Arun Jaitley) and the Ministry of Industry and Commerce (including the Minister of State Nirmala Sitharaman that Head of Department) did not respond to the detailed questionnaires sent by Economic and Political Weekly that two weeks ago, asking for an explanation of the reason for government actions that seem to favor a particular company. The Adani group is led by Gautam Adani, who is supposed to be close to Prime Minister Narendra Modi.

In August 2016, the Regulation on Special Economic Zones in 2016 was amended by the Ministry of Commerce to insert a provision on claims under the Special Economic Zones Act 2005. The Law of Special Economic Zones in which the Special Economic Zones Rules are initially framed provided no provision for reimbursement of any kind before introducing the change. The change has allowed Adani limited food to have the opportunity to ask for customs repayments at the rate of Rs 500 crore. Adani limited feed claimed to have customs duties paid for raw materials and consumables, that is, imported coal for power generation. However, documents released to the EPW clear limited food qu’Adani had not actually paid the duty on raw materials and consumables Rs 1 billion rupees from the end of March 2015. Apparently, Alteration of the rules of special economic zones to insert a provision that companies are demanding reimbursement customs, the Department of Commerce allows Adani limited food with the claim of restitution by the right that was never paid for it in the first place.

Adani limited feed imports coal from Indonesia. The import of coal by the company (with others such as Reliance Infrastructure, Pink Power Supply, Essar Group companies, among others) from Indonesia has been a review of the Directorate of Revenue Intelligence for some time. In March 2016, management, research by the Ministry of Finance Finance Department, said that Indonesia’s coal imports were overburdened by diverting funds out of the country and electricity generation companies, including Adani limited food, has a Higher rate compensation based on the artificially inflated price of imported coal. In addition to this, the companies of the Adani and Essar groups have been accused of overloading imported equipment from the plants. These reports first appeared in the WPA in April and May last year. This instance of the so-called set of escape tasks is consistent with the claims claim rights which, in fact, have not been paid.

Located in Mundra, Gujarat, Adani Food Limited claims to have established the first coal-based power plant based on India’s “super critical technology”, with an installed capacity to generate 660 megawatts of electricity. The center of Mundra, located in the port and Adani SEZ, has a total capacity to generate 4,620 MW. The Mundra power plant.