Government clarifies land acquisition for SEZs

Ceiling on the number of zones in IT/ ITeS sector likely 


A MATTER OF CHOICE: Gopal K. Pillai, Special Secretary, Union Ministry of Commerce, flanked by K. R. Girish (left), Chairman, Direct Taxes Committee, BCIC, and C. J. Mathew, Development Commissioner, Special Economic Zone, Kochi, at the interactive seminar on SEZs in Bangalore on Tuesday. — PHOTO: K. GOPINATHAN

BANGALORE: The Central Government has made it clear that not more than ten per cent of the total area required for setting up a special economic zone (SEZ) should be double crop land, while the balance 90 per cent must be single crop, waste and barren land.

"This is one of the general conditions for approving an SEZ. If the area of double crop land to be acquired for setting up an SEZ exceeds ten per cent, we will ask the developer to review and modify the proposal,'' G. K. Pillai, Special Secretary, Union Ministry of Commerce, and Chairman, Board of Approval, (BoA) told reporters on the sidelines of an interactive seminar on SEZ, organised by the Bangalore Chamber of Industry and Commerce (BCIC) here on Tuesday.

Since land is a State subject, it is for the State governments to decide the mix while acquiring land for developing any SEZ. "Most State government representatives have said that they had no problem in keeping the ten per cent limit on double crop land,'' he said.

The Government does not anticipate any problem, if a farmer decides to sell his single crop land at market prices. "But, if a farmer wants to continue cultivation on his double crop land and he is forced to sell his holding, then it is a problem,'' Mr. Pillai said.

To avoid potential conflicts over land acquisition and make farmers stakeholders in the project, some SEZ developers have proposed to pay 70 per cent of the cost of land in cash to the farmers and the balance as shares of the company that is developing the SEZ.

With the Empowered Group of Ministers (EGoM) giving the go-ahead for more SEZs without any restrictions or ceiling, the BoA is slated to meet four times before October 10 to consider 266 fresh proposals for SEZs with a potential investment of $80 billion and generating about 18 lakh jobs. All the proposals that meet the stipulated criteria, including that on net worth, would be cleared.

The BoA has already granted `in-principle' approval to 150 SEZs with an investment potential of $40-50 billion out of which 94 are in the IT and ITeS category. Mr. Pillai said the BoA was ready to impose a cap on the number of SEZs proposed in the IT and ITeS sectors if the STPI (Software Technology Park of India) scheme was extended beyond 2009.

"The Ministry of Information Technology is thinking of moving a Cabinet note seeking extension of the STPI scheme beyond 2009,'' he said.

http://www.hindu.com/2006/09/27/stories/2006092708471700.htm

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