Home >Companies >News >Hindalco Industries says SEZ was unattractive

Mumbai: Hindalco Industries Ltd has decided to exit from the special economic zone (SEZ) scheme as it found it more attractive to operate its aluminium plants in the domestic tariff area (DTA), the company said in a statement to the BSE on Tuesday.

“The company had initiated setting up of two aluminium projects, viz., Aditya Aluminium in Orissa and Mahan Aluminium in Madhya Pradesh under the SEZ scheme," the company’s statement said.

“Subsequently, it was observed that establishing the projects under the domestic tariff area was more attractive for the company. Accordingly, the company decided to exit from the SEZ scheme and established the projects under DTA," the statement added.

The Aditya Birla Group-owned Hindalco Industries, India’s second largest aluminium maker, invested around $5 billion in the last five years in three new plants including the ones named above, to double its capacity to 1.3 million tonnes after an ongoing ramp up.

Hindalco is facing problems on the raw materials front as its bauxite mines in Jharkhand have been closed by the state government for running on second deemed leases. It is also facing a coal crisis as the Supreme Court cancelled its five coal blocks which were a part of the 214 blocks that got de-allocated.

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