Hyderabad: The Expert Appraisal Committee under the Union Environment ministry has accorded permission to convert GMR group's aviation SEZ into multi-product special economic zone at the Rajiv Gandhi International Airport here.

According to the minutes of the EAC meeting held on June 25 last, the SEZ can now have industrial units, activities relating to aviation in addition to pharmaceutical formulation, gems and jewellery, electronic and commercial developments among others.

GMR Hyderabad International Airport Limited (GHIAL) cited poor response from aviation companies for setting up shop in the aviation SEZ as a reason to convert it into a multi-product SEZ.

The infra major had last year said the GMR Aerospace and Industrial Park spread in the layout of 253.85 acres had an occupancy rate of just 11 per cent over the last six year and if allowed it to convert into a Multiproduct SEZ, within 3-4 years it will be fully operational.

No further expansion of any sort for the proposed unit as well as no further request of any new pharma unit (including formulation) within SEZ shall be permitted, the EAC noted. The Ministry of Civil Aviation has confirmed that there is no security threat to civil aviation directly from the units at SEZ.

In addition, Directorate of Civil Aviation has stated that considering the distance and location of proposed unit, it does not have any impact on the safety of airport operations. Telangana State Disaster Response and Fire Service Department has issued provisional NOC to Citron Formulations Private Limited, to set up its unit in the newly converted multi-product SEZ. (PTI)