Special Erroneous Zones: Pitch against SEZs may slow down pace in Andhra Pradesh

Venkaiah Naidu says the concept should not harm agriculture

KVVV CHARYA
Posted online: Monday, October 02, 2006 at 0000 hours IST

HYDERABAD: Special Economic Zones (SEZs), termed engines of growth, are now being categorised as sheer real estate ventures that need periodic monitoring by the regulatory agencies, thanks to references made by United Progressive Alliance chairperson, Sonia Gandhi, at the recent meeting in Nainital of chief ministers of Congress-ruled states.
The caution, which Gandhi sounded, was to safeguard the country’s food security by protecting farmers and not allowing conversion of agricultural land for industry, even in the name of development.

Interestingly, these words of caution also got approval from the main Opposition party, the Bharatiya Janata Party (BJP). Its national vice-president, M Venkaiah Naidu, said his party was not opposed to the SEZ concept, but it should not replace agriculture.

All these observations are making industry think twice before taking up the SEZ project. Interestingly, in Andhra Pradesh, which is in the forefront of the SEZ rush, with over 25 approved projects and another 25 applications pending before the empowered committee, there is a possibility that some companies may withdraw their applications. Also, some of the projects that obtained approvals may be delayed due to change of lending options by banks, say industry sources.

“The situation is fluid as of now, since a majority of the approved proposals relates to the developers. The changed situation will not give enough incentives to them to complete the project early,” sources added.

While this so, government-sponsored projects, like industrial parks targeting a specific product or service are being pushed hurriedly as the Andhra Pradesh government may have to alter its earlier SEZ policy for amending land acquisition norms and compensations to farmers.

Reports from districts like Nellore, Visakhapatnam etc, which have been seeing a lot of activity, suggest that the district administration has been asked (may be verbally) to speed up the process of acquisition.

Officials, however, said even if cultivable land was acquired, the farmers were being paid market prices.

“If there is going to be a change in the policy and the government has to pay a higher price than the market price, the farmers may be paid later,” they said.
http://www.financialexpress.com/fe_full_story.php?content_id=142085

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Sudarshan Rodriguez

Sudarshan Rodriguez,

Marine Conservation Analyst

Project Coordinator,

Post- Tsunami Environment Initiative

(www.ptei-india.org)

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