Govt clears SEZing doubts

TIMES NEWS NETWORK[ WEDNESDAY, JANUARY 24, 2007 03:45:34 AM]

NEW DELHI: The commerce & industry ministry has allayed apprehensions of
SEZ developers over the government’s decision to freeze new approvals
and notification of SEZs. On Monday, the empowered group of ministers
(eGoM) on SEZs had decided to keep approvals on hold till further orders.

In a statement issued on Tuesday, the ministry of commerce & industry
said new approvals and notifications have been temporarily held in
abeyance and final decisions would be taken on all pending issues when
the eGoM meets again shortly. The statement took note of the concern
among developers over the future of their investments.

The statement noted that apprehensions had been expressed by SEZ
developers and other stakeholders regarding the future of investments
made by them. “The apprehensions are primarily based on media reports
highlighting the decisions of the eGoM,” the release said.

The statement explained that the eGoM meeting on Monday for reviewing
the status of SEZ approvals –– as per the decision taken in the previous
meeting last August –– was inconclusive. “It is only pending decision by
the eGoM that the new approvals and notifications have been temporarily
held in abeyance. The eGoM is expected to meet shortly and final
decisions would then be taken on all pending issues,” the release added.

The eGoM, in its meeting on Monday, had decided to slam brakes on all
notifications till a decision on contentious issues, including land
acquisition process, sectoral caps and possible ceilings, were sorted
out in its next meeting. Opposition surrounding land acquisition for
SEZs has been gathering steam and also taking a violent shape, as in
Nandigram, West Bengal, where Indonesia’s Salim group was planning to
set up a chemicals SEZ.

The Prime Minister has promised that a new rehabilitation policy for the
displaced will be in place soon to ensure farmers and displaced
businesses get a fair deal. The Left parties and BJP are also pushing
for sectoral caps to be placed on SEZs. With Assembly elections in
Punjab and Uttar Pradesh due shortly, the government is expected to go
slow on SEZs.

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