Publication of Notification of Adani ports and Special Economic Zone Ltd. (APSEZL) (formerly Mundra Port and Special Economic Zone Limited) at Mundra, Gujarat for partial denotification of an area of 151.8220 Ha.

## Policy Analysis Report: Partial Denotification of Area within Adani Ports and Special Economic Zone **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Commerce and Industry regarding a partial denotification of land within the Adani Ports and Special Economic Zone (APSEZ) located in Mundra Taluka, District Kutch, Gujarat. The core purpose of this amendment is to reduce the area of the designated Special Economic Zone by 151.8220 hectares, resulting in a revised total area of 8282.7670 hectares. The denotified land is intended for industrial purposes, specifically a Crude Oil terminal. Key findings indicate compliance with relevant sections of the Special Economic Zones Act, 2005 and related rules, and approval from both the State Government of Gujarat and the Development Commissioner, APSEZ. **2. Introduction:** This report aims to provide a comprehensive overview of the Ministry of Commerce and Industry's notification concerning the partial denotification of land within the Adani Ports and Special Economic Zone (APSEZ) in Gujarat. The analysis is based solely on the provided policy text and aims to inform affected industries and stakeholders about the nature and implications of this amendment. **3. Policy Overview:** * This notification represents an amendment to the original establishment and subsequent modifications of the Multi Product Special Economic Zone at Mundra Taluka, District Kutch, in the State of Gujarat under the Special Economic Zones Act, 2005. This SEZ was originally notified and renotified through various notifications, including S.O.1365E dated 27th May, 2009; S.O. 583E dated 26th March, 2012; S.O. 1443E dated 31st May, 2013; S.O. 3379E dated 11th December, 2015 and S.O. 3029E dated 21st September, 2016. * **Core Objective:** The core objective of this amendment, as inferred from the text, is to adjust the boundaries of the existing Special Economic Zone by removing a specific parcel of land (151.8220 hectares) to accommodate its utilization for a specific industrial purpose: a Crude Oil Terminal. **4. Background and Rationale:** This notification represents an amendment to the originally established Special Economic Zone. The rationale for this specific amendment appears to be driven by a proposal from Adani Ports and Special Economic Zone Limited to denotify a portion of the existing SEZ. This suggests a shift in land-use planning or strategic development within the area. The approval from the State Government of Gujarat and the Development Commissioner, APSEZ, indicates that this denotification aligns with the overall development objectives and regulatory requirements. The fact that the land is slated for a Crude Oil terminal suggests a desire to facilitate or accommodate specific infrastructure development related to the oil and gas sector. **5. Key Provisions / Changes:** This notification focuses on the *changes* introduced by the amendment. * **Original Policy Section Changed:** The notification amends the existing area of the Special Economic Zone, effectively reducing its overall size as defined in previous notifications, particularly Ministry of Commerce and Industry Notification Number S.O. 3029E dated 21st September, 2016 which re-notified an area of 8481.2784 hectares. * **New Rule/Provision:** The new provision denotifies 151.8220 hectares of land within the APSEZ, located in Mundra Taluka, District Kutch, Gujarat. The resultant area of the SEZ after this denotification is 8282.7670 hectares. The land to be denotified comprises Survey No. from the Village of Mundra GMBGAPL LAND Old Bharat salt land. * **Difference/Effect:** The effect of this change is a reduction in the designated SEZ area. This allows for the use of the denotified land for purposes outside of the SEZ framework, specifically for the development of a Crude Oil terminal. This also affects the incentives and regulations that apply to the area, as it will no longer be subject to SEZ rules. **6. Target Audience and Stakeholders:** Based on the provided text, the primary stakeholders directly affected by this amendment include: * **Adani Ports and Special Economic Zone Limited:** As the developer of the SEZ, APSEZ is directly impacted by the change in land area and the implications for their overall development plans. * **Companies operating within the remaining SEZ area:** The denotification may indirectly impact operations within the remaining SEZ area by altering the overall ecosystem and potentially affecting shared infrastructure or services. * **Potential Investors in the Crude Oil Terminal:** Companies interested in investing in or utilizing the new Crude Oil terminal will be directly affected by this change. * **State Government of Gujarat:** The state government is a key stakeholder due to its role in approving the denotification and its broader responsibility for regional economic development. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** * **Ministry of Commerce and Industry:** Issued the notification and is responsible for overseeing the implementation of the Special Economic Zones Act, 2005. * **Development Commissioner, APSEZ:** Recommended the proposal for denotification. * **State Government of Gujarat:** Provided approval for the proposal. * **Timelines or Procedures:** The text indicates a process involving a proposal from APSEZ, recommendation from the Development Commissioner, approval from the State Government, and final notification by the Central Government. However, specific timelines for implementation are not provided within this text. The Developers application form dated 02nd March, 2021 suggests that the process for denotification and alternative industrial use has been underway since at least March 2021. * **Implementation Aspects Related to Changes:** The denotification requires APSEZ to formally relinquish control over the 151.8220 hectares of land. The State Government of Gujarat likely has oversight in ensuring the land is appropriately transitioned to industrial use as a Crude Oil terminal. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is to facilitate the development of a Crude Oil terminal within the Mundra region. The potential impacts of this change include: * **Increased industrial activity:** The development of the Crude Oil terminal is expected to generate economic activity and create employment opportunities within the region. * **Enhanced infrastructure:** The new terminal could improve the region's infrastructure and logistical capabilities related to the oil and gas sector. * **Attraction of new investment:** The development of the Crude Oil terminal might attract further investment in related industries and sectors. * **Impact on SEZ operations:** The reduction in SEZ area could potentially affect the overall operations and competitiveness of the remaining SEZ area, requiring adjustments to development strategies. **9. Conclusion:** The notification for the partial denotification of 151.8220 hectares of land within the Adani Ports and Special Economic Zone represents a strategic adjustment to the SEZ's boundaries. The denotification, intended to enable the development of a Crude Oil terminal, reflects a shift in land-use planning and a potential focus on strengthening the region's energy infrastructure. This change impacts APSEZ, companies operating within the remaining SEZ area, potential investors in the Crude Oil terminal, and the State Government of Gujarat. Understanding the specific implications of this amendment is crucial for all affected stakeholders to adapt their strategies and ensure alignment with the revised regulatory landscape.

Key Entities Referenced