SEZs in China

Apart from reasons elaborated in `SEZs: Govt must re-do the homework'
(Business Line, December 6), a few other policies have been instrumental
for the success of SEZs in China. One main reason is that the land
belongs to the state. In China, the SEZs are large,
multi-product-oriented and concentrated mainly on the manufacturing
sector. Major fiscal sops were not a part of the policy and labour laws
were amended to give enough authority to the employer to terminate the
services of incompetent workers.

Surprisingly, in India, the Commerce and Finance Ministries have serious
differences of opinion on the policy itself. The number of applicants
has been large, as they see it as real-estate investment. The
concentration of the approved SEZs is mainly in the South and in the
progressive States; there are no takers for the North-Eastern region.
Unless the Government revamps the SEZ policy, it may well turn out to be
the mother of all scams.

A. E. Charles

http://www.thehindubusinessline.com/2006/12/21/stories/2006122100180800.htm