Tweet 1 0 More from The Times of India DGCA prods Tata-SIA to avoid licence delay 06 Aug 2014 Post RBI infra bond breather, ICICI looks to raise Rs 1,000 crore at a 26 J ul 2014 Rajiv' s IPKF move was impulsive: Ex-Army man 03 Aug 2014 Fiat launches compact car Punto Evo priced at Rs 4.55 lakh 05 Aug 2014 BJP to seek disqualification of 4 independent MLAs 09 Aug 2014 Police book teachers accused of molestation 08 Aug 2014 From Around the Web Music Mastermind turns phones into music studios with IBM Cloud IBM Airports Become Battleground for Taxi And Shuttle Operators' Struggle Roll Call Suzuki's new wagon mimics hybrids, but is lighter Nikkei Asian Review Middle East chaos: history of intermixing ethnic groups, religions, states Nikkei Asian Review How to Study in Six Simple Steps Dummies.com China: An Economic Blip? The Financialist Shishir Arya, TNN | Aug 6, 2014, 01.39AM IST NAGPUR: Tata Group company TAL Manufacturing Solutions, which has bagged a prestigious order to manufacture high-end components for Sukhoi-30 fighter aircraft, has failed to secure a duty exemption at Mihan. The exemption had been sought on the grounds that the job will be executed at its unit in the Mihan-special economic zone (SEZ), and would serve a national interest. The order was secured from PSU aircraft maker Hindustan Aeronautics Limited (HAL). Since production is planned in the SEZ, TAL had moved an application before the board of approvals (BOA) under the ministry of commerce to get a customs duty waiver. Units in SEZs get tax exemptions as they fulfil an export obligation. However, even as the supplies in this case will be routed to HAL, which is a domestic consumer, TAL had pressed for a duty waiver on the grounds that it will be serving national interest by executing the order. However, the BOA, which is a body governing SEZs, rejected the plea. TAL wanted a waiver on the material to be procured from abroad for making the aircraft components. Ads by Google Buy Villas In Mysore Zero Energy Homes, Where Nature Weds Technology. Enquire Now. zed.in/homes/mysore Book a Tata Home @ 30,000 Retirement Homes at Bangalore by TataHousing. Hurry, Few Units Left! tatahousing.in/Riva The minutes of the BOA meeting held last month say that TAL's plea has been rejected as there is no provision of waiver for supplies made to a domestic tariff area (DTA) unit in the SEZ Act or the rules. On the other hand, TAL's plea had said "by executing the project the company is participating in projects of national interest, however, the customs duty applicable to the material was the major obstacle in the process". The Sukhoi aircraft will be finally supplied to the Indian Air Force by HAL. Senior officials at TAL's unit in Mihan refused to comment, just as they refuted any plans to make any components for Sukhoi-30 at the unit in Mihan-SEZ. TAL has taken up land at Mihan to manufacture floor beams to be used in Boeing's Dreamliner aircraft. "The progress on this front is going on gradually," said a TAL official not wishing to be named. TAL is reported to have delivered the first floor beam for the aircraft recently. However, MADC sources confirmed plans to manufacture high-end parts of the fighter aircraft at the Mihan unit. The source says even as BOA has rejected the proposals there are plans to submit a fresh proposal directly to the ministry of commerce. It is hoped that an exemption may be granted as a special case. Recommended by Printed from 0 Recommend Recommend 5 TIMES POINTS EARNED Ads by Google Sobha Apartment Bangalore www.sobha.com/Apartments-Bangalore Luxury 2/3/4BHK Thematic Apartment. @Prime Location. Great Investment. 3 BHK Flats in Chennai houseofhiranandani.com A Home in the Aspirational House of Hiranandani Community. Enquire Now Reliance Retail set to shut 100 Fresh stores Highlights of Rail Budget 2014 Its raining discounts as car makers push sales FEATURED ARTICLES THE TIMES OF INDIA Powered by INDIATIMES About us Advertise with us Terms of Use and Grievance Redressal Policy Privacy policy Feedback RSS Newsletter TOI Mobile ePaper Sitemap Archives Other Times Group news sites The Economic Times | Mumbai Mirror | Times Now Indiatimes | | Go Green Living and entertainment Timescity | iDiva | Bollywood | Zoom Healthmeup | Luxpresso | Technoholik Guylife Interest Network itimes | Email Hot on the Web Hotklix Services Book print ads | Online shopping | Business solutions | Book domains | Web hosting Business email | Free SMS | Free email | Website design | CRM | Tenders | Remit Cheap air tickets | Matrimonial | Ringtones | Astrology | J obs | Property | Buy car Bikes in India | Deals | Free Classifieds Copyright 2012 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service 5 TIMES POINTS EARNED