SEZs around towns may be stalled to curb speculation

ARUN S
Posted online: Thursday, December 21, 2006 at 0138 hours IST




NEW DELHI, DEC 20: The government may stall proposals for special
economic zones (SEZs) within 50 kilometres of major towns and cities.
The move will prevent speculation in land prices leading to real estate
scams.
According to government officials, a proposal to this effect is likely
to be cleared by an empowered group of ministers next month. The
officials said the move follows concerns raised by Left parties on
Wednesday during a group of ministers meeting on SEZs regarding the
misuse of land in setting up such zones. The officials said the move
would also encourage development in the hinterland.

The officials said most of the 403 SEZs approved by the government were
being set up in and around major cities and towns. This had pushed land
prices to unrealistic levels, they added.

The government is also likely to amend the Central Land Acquisition Act
to include specific provisions on fair compensation and rehabilitation
package for those displaced while setting up SEZs. The rural development
ministry would decide the level of compensation and the implementation
of the rehabilitation package.

The government is also open to converting the whole area of an SEZ into
a processing area, instead of the present 35%. Land acquired for SEZs
accounts for 2-11% of the total land acquired for all purposes.

http://www.financialexpress.com/fe_full_story.php?content_id=149499