Agri land not to be used for SEZs: Nath

 
 
NEW DELHI, SEPT 25:  The Centre on Monday said it had asked all states to ensure that prime agriculture land was not used for setting up special economic zones. This came two days after Congress president Sonia Gandhi cautioned states, ruled by her party, against converting farm land for industrial use. Commerce and industry minister Kamal Nath told reporters on the sidelines of a Ficci conference here that the Board of Approval for SEZs had already decided that proposals for setting up SEZs on prime agriculture land would not be cleared.
Pointing out that land was a state subject under the Constitution, Nath said his ministry had written to states not to acquire land for private developers. Agreeing with his party president, he said SEZs should be set up only on wasteland or less fertile farm land.


But he took a dig at the RBI for its stand on SEZs. On the central bank’s move to consider SEZs as real estate projects for lending purposes, he said the RBI should ensure it did not contradict itself after lauding the SEZ policy in its annual report for accelerating economic development. Asked if the RBI’s move would impact SEZ developers, he said, “Industry will have to take up this issue with the RBI.”
 
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