EGoM meeting inconclusive, fate of 340 SEZs hangs in balance

Tuesday January 23 2007 00:00 IST
PTI

NEW DELHI: The fate of more than 340 special economic zones cleared so
far hangs in balance as the Empowered Group of Ministers could not reach
a firm view on the most contentious issues of land and tax concessions.

"The EGoM discussed land issues, rehabilitation question and possible
misuse of tax concessions. But it remained inconclusive," Commerce and
Industry Minister Kamal Nath said.

He said pending the final view of the EGoM, which will meet shortly
again, no fresh proposals will be taken up by the Inter-Ministerial
Board of Approvals.

Sources said whatever decision EGoM takes on the SEZ policy, it would
not be applicable to the 63 SEZs that have already been notified.

But the future of more than 340 proposals approved but not notified
remains uncertain. Apart from the proposals cleared, as many as 300
applications are pending with BoA.

Officials said the rehabilitation policy, which is being prepared by the
Rural Development Ministry, will be taken to the cabinet next month.
They said there would be separate policies for land acquisition and
rehabilitation.

Nath said as EGoM chairman and External Affairs Minister Pranab
Mukherjee had to leave for another meeting, final views on various
issues could not be reached.

Sources said as the issues raised on SEZs were complex and contentious,
it was difficult to reach a firm policy.

Besides Mukherjee and Nath, the EGoM includes finance Minister P
Chidambaram, agriculture Minister Sharad Pawar, and it and
communications Minister Dayanadhi Maran
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