DLF rethinks its SEZ in Punjab

Ajay Bharadwaj
Monday, October 02, 2006 21:38 IST

CHANDIGARH: The SEZ proposed to be set up in Punjab by DLF has run into
trouble following fresh guidelines from the Centre and subsequently
altered stance of the state government. Chief Minister Amarinder Singh
has said the state government would not disturb farmers to set up mega
projects.

Though the Centre has approved the SEZ in Amritsar, DLF may find the
going tough without full support from the state government. Earlier, the
government had promised to help DLF buy land for the SEZ at concessional
rates.

Now DLF may be required to pay farmers the market price for the land. It
had proposed to acquire 1,232 acres of land. Farmers organised rail roko
agitations in protest.

DLF manager SK Bansal said the company might review the project if its
cost escalates. He said without assistance from the government, DLF
could not acquire land for project. He did not rule out the possibility
of the project being shelved as the company had not yet made any investment.

The Reliance Industries Ltd (RIL), however, has announced its intention
to go ahead with its Rs2200 crore farm-to-fork project even if the state
government were to backtrack on its commitment to provide land at
discounted rates.

Senior company managers told chief secretary KR Lakhanpal last week that
RIL would like to implement the project on its own bearing the market
costs. The government has so far provided more than 1,500 acres of land
owned by the Punjab State Industries and Exports Corporations (PSIEC),
besides assuring RIL that panchayat land would be made available on lease.

The Centre’s move not to allow SEZs on prime farm land puts a question
mark not only over the other two SEZs in Punjab, but also other mega
projects worth Rs80,000 crores.

http://www.dnaindia.com/report.asp?NewsID=1056356