Larson & Toubro (L&T) has sought the Central government’s nod for using a jetty facility of its special economic zone unit in Kattupalli, Ennore in Tamil Nadu for transit of goods manufactured in another unit outside the zone without payment of customs duty.
The SEZ unit in Kattupalli belongs to L&T Hydrocarbon Engineering (LTHE), a wholly-owned subsidiary of L&T, and the company wants to use the SEZ jetty facility there for despatch of modules manufactured by one of its units located outside the zone in the domestic tariff area (DTA) for modernisation of the Hindustan Petroleum Corporation (HPCL) Vizag Refinery.
LTHE’s DTA unit at Mumbai has received engineering, procurement, construction (EPC) order from HPCL for residue upgradation facility as part of modernisation plan in HPCL’s Vizag Refinery.
The project site of HPCL at Vizag is congested and will lead to construction bottlenecks and difficulties in movement and storage of materials at the site. LTHE proposed to set up a DTA facility at Kattupalli by de-notifying a portion of the L&T Shipbuilding SEZ, fabricate the plant modules at the DTA facility and then commission/erect the modules at HPCL, Vizag, on plug-and-play model.
However, the company will go ahead with de-notification only if BoA allows it to use the SEZ jetty, from January 2021 to November 2021, for transiting the goods and despatching them through the sea to HPCL, without paying customs duty.
