Diversified conglomerate Essar's request for an additional gate at its engineering SEZ in Hazira, Gujarat has been referred to the Empowered Group of Ministers (EGoM) after objections were raised by the Finance Ministry.
The Board of Approval (BoA) in the Commerce Ministry had allowed only two gates — one for inter-carting and transporting and the second for personnel and other movements.
However, after the request by Essar, the board had "permitted the developer to operate the third gate on a temporary basis" till May 31.
The company wants an additional "product gate" to be used only for movement of hot sponge iron from SEZ unit for consumption outside the tax free haven.
The Department of revenue is not in favour of an additional gate saying monitoring would become a problem, in case of number of gates.
"After deliberations, as the issue could not be resolved at the BoA level, it was decided that Department of Commerce would place the issue before EGoM for a decision," sources said.
Essar's request was also taken up in the BoA held in February but it was deferred.
So far, 568 formal approvals have been granted for setting up SEZs, out of which 315 have been notified.
Total export from SEZs stood at Rs 99,689 crore in 2008-09, a growth of about 50 per cent over the previous fiscal.
The BoA is meeting on June 17 for the second time in a month and will take up the request of realty firm DLF to allow the proposed metro rail to pass through its SEZ in Gurgaon.
