The government on Monday approved 10 proposals for setting up special economic zones, including those of Larsen & Toubro and Navi Mumbai SEZ, promoted by an aide of Reliance Industries Chairman Mukesh Ambani.

The BoA meeting, chaired by commerce secretary G K Pillai, gave a clean chit to a Gujarat-based Essar SEZ project, which was earlier embroiled in issues like overlap between the domestic tariff area and the tax-free enclave.

Three Mundra SEZs in Gujarat, having a total investment of Rs 1,00,000 crore (Rs 1,000 billion) have been allowed to be merged. Since the combined area of the three zones exceeded the 5,000-hectare ceiling on a single SEZ, the BoA took the decision after a clearance from the empowered group of ministers, headed by external affairs minister Pranab Mukherjee.

The Navi Mumbai SEZ Pvt Ltd, which has promoted various zones, received fresh approval for the one dedicated to the gems and jewellery sector.

The combined Mundra SEZ will induct six investors as co-developers. One of the SEZs to be merged into the combined entity is setting up a 300-MW power plant to be commissioned next month, Pillai said.