The Board of Approval on Special Economic Zones has given a six-month extension to a request by Plastic Processors & Exporters Private Limited for extension of validity of its LoP plastic processing unit in NSEZ.

Plastic Processors & Exporters Private Limited is holding LoP for export production of plastic agglomerates and granules. The LoP of the unit expired in March and so it sought a renewal of LoP for next five years.

The unit completed first 10 years of operation from NSEZ on March 31, 2008 and thereafter validity has been extended by the board on yearly or half yearly basis from time to time in terms of Rule 18(4) (a) of SEZ Rules, 2006.

The unit requested for extension of the LoP further for a period of five year citing extension given by the BoA for five years in similar cases. The unit has further stated that due to one year extension being granted to them every time, its business has been affected badly as it is getting very little time between the extension of LoP and its expiry. As a result it has to keep their unit closed for some period of the year causing problems on labour management and business planning from as well.

The unit has further added that due to uncertainty over the renewal by the BoA it is unable to keep its customers, buyers intact. Hence the unit has requested to renew the LoA for a reasonable period. It has also been intimated that the unit is providing employment to nearly 55 persons.

But after deliberation, the board extended LoP of the unit for a further period of six months from the date of expiry of the validity of the extension, i.e., from March 31.

?The approval is, however, subject to the condition that the unit shall have to abide by the outcome of the final policy for the plastic re-processing units in the SEZs, under examination by the Department of Commerce,? the board said.

It also directed the unit for finalisation of the policy for the plastic reprocessing units in the SEZs at the earliest.