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Reliance Industries Ltd & Chromeni Steel to get the slew of incentives

Mar 12,2019

Reliance Industries Ltd (RIL) and Ahmedabad-based Chromeni Steels Pvt Ltd will get a slew of incentives under Gujarat's government's Ultra Mega and Mega Scheme aimed at incentivizing large industries who set up their facilities in the state.

 

Vijay Rupani chief minister headed a high-powered committee which approved the two projects under the scheme, said a senior government official close to the development. The committee approved RIL's investment of Rs.27, 000 crore for setting up a petrochemical complex at Moti Khavdi near Jamnagar. RIL had applied for the scheme on November 1, 2017, and commenced commercial production from December 1, 2017. A deck for Chromeni Steels, which is setting up an Rs 8,000 crore steel plant in Kutch, was also cleared.

 

Under the Ultra Mega and Mega scheme, a project with an investment of INR 1,000 crore or more in Gujarat can avail benefits including electricity duty waiver for 5 years and stamp registration fees reimbursement. The company can also avail 70% State Goods and Service Tax (SGST) reimbursement for 10 years of eligible investment. Apart from this, infrastructure support, single-window clearance facility, land conversion charges reimbursement is also included in the list of incentives under the scheme.

 

The RIL project is part of the third phase of expansion at Jamnagar by RIL, popularly called as J3. RIL, which already operates 2 refineries with a total capacity of over 70 million tonnes at Jamnagar, has set up a multi-billion dollar cracker unit as part of its expansion in petrochemicals. The new complex produces high-density and linear low-density polyethylene, low-density polyethylene, ethylene, propylene, and mono-ethylene glycol that have a wide range of application in industry.

 

Chromeni Steels, a joint venture between Ahmedabad-based ISCON Group and China's Tsingshan Group, manufactures hot-rolled and cold-rolled products of steel, n ingots or other primary forms and semi-finished steel products.