JD(U) asks PM to scrap SEZ Act

POLITICAL BUREAU
Posted online: Wednesday, October 04, 2006 at 0000 hours IST

NEW DELHI, OCT 3: Janata Dal (United) chief Sharad Yadav has asked Prime
Minister Manmohan Singh to scrap the special economic zone (SEZ) Act and
to withdraw all the SEZ approvals.
According to him, SEZs have created “economic dualism.” In a letter to
the Prime Minister, Yadav said SEZs were against the “sentiments of our
Constitution”.

He said, “Under SEZs two Indias were being created, where two laws and
policies would apply.”

“The cost of production under SEZs will be lower and, hence, there will
be large-scale smuggling from SEZ India to non-SEZ India,” he said,
adding that it would destroy India’s current industrial achievements and
result in revenue loss amounting to thousands of crores.

Subscribing to the view that the SEZs spelt doom for the industry, Yadav
pointed out that the industrial growth in July this year was over 12%
without SEZs. “The best way to invite more foreign capital and promote
exports is to make make the whole of India a low-cost economy,” Yadav said.

Besides, he accused the UPA government of lacking a clearcut SEZ policy
by pointing out the contradictory statements by various ministers on the
issue.

While commerce minister Kamal Nath toed Congress chief Sonia Gandhi’s
line that there would be no SEZ on fertile agricultural land, food and
agriculture minister Sharad Pawar spoke of adequate compensation to
farmers.

Yadav pointed out even rural development minister Raghuvansh Prasad
Singh had termed SEZ as a land scam.

http://www.financialexpress.com/fe_full_story.php?content_id=142286