The Centre has allowed GAIL to exit as a unit from the Cochin Port Trust Special Economic Zone (CSEZ) in Puthuvypeen, Ernakulam, after repaying the duty benefits it has availed so far, as it failed to meet the requirement of being a net foreign exchange earner (NFE).
Cochin Port Trust, the developer of the SEZ, and the three co-developers — Petronet LNG, BPCL and IOCL — have been given a year’s time to bring another unit into the zone that has a direct relationship with their activities, failing which the zone will lose its SEZ status, per a decision taken by the Board of Approval (BoA) for SEZs, in a recent meeting.
It is necessary for a new unit to come up after the exit of GAIL as it was the only operational unit in the SEZ. Without a functional unit, the zone will cease to exist.
