Don’t let new rules delay landed proposals, SEZ Nath

AMITI SEN

TIMES NEWS NETWORK[ SATURDAY, MARCH 10, 2007 02:20:13 AM]

NEW DELHI: The commerce department has written to chairman of the
empowered group of ministers (eGoM) on SEZs, Pranab Mukherjee, seeking
permission to allow SEZ proposals that have received formal approval to
apply for notification.

The letter says that proposals where land has not been acquired could
wait till the new rules are firmed up, but the 173 cases where land is
not an issue should be allowed to take off. The eGoM, which is likely to
meet after Parliament goes into recess later this month, will take a
decision on the issue.

Speaking to ET, official sources said Mr Mukherjee is going through all
the points raised by the department and will share his views with all
eGoM members when the group meets next. Since Parliament is in session
at the moment, the eGoM cannot meet till Parliament goes into recess in
two weeks time. "It is only when the eGoM meets will we get to know what
the fate of the proposed SEZs is going to be," an official said.

The proposals with land include both domestic and foreign investor like
Singapore-based property developer Ascendas, Sri Lankan textile company
Brandix, Infosys, Jindal Steel, the Chatterjee Group, the Tata's and the
Mahindra's.

The eGoM, on January 22, decided to freeze all notifications and
approvals of SEZs till the time a decision was taken on the changes to
be made in the SEZ policy. This followed nation-wide protests on
forcible land acquisition by states for SEZs and inadequate compensation
package for oustees. The eGoM has received a number of suggestions from
various political and farmer groups, including the need to put in place
caps and ceilings on numbers. The government is also finalising a new
rehabilitation policy that promises better compensation to the displaced.

There are as many 236 proposals that have been formally cleared by the
board of approval of which only 63 have been notified. The remaining 173
proposals have been put on freeze despite the fact that a number of
developers have bought machinery and employed workers. About 163 SEZ
proposals have been given in-principle approval by the government as
they do not have land in their possession.

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