Freeze on SEZs has upset investors: Maran

Staff Correspondent

Urges Centre to relax norms or clear proposals

CHENNAI : Union Information Technology and Communications Minister
Dayanidhi Maran on Friday expressed the hope that Special Economic Zones
(SEZs), which have been approved but put on hold in Tamil Nadu due to
controversy over land acquisition in various states, would be given the
go-ahead as most of them were being set up on land belonging to the
Small Industries Promotion Corporation of Tamil Nadu (SIPCOT).

He said some investors with major plans in the State, especially in
manufacturing sector, were upset over the freeze and might explore the
option of moving to countries like Vietnam if the Government did not
relax the norms or lift the freeze.

Mr. Maran, who was part of the empowered Group of Ministers headed by
External Affairs Minister Pranab Mukherjee, said the committee would
meet next week to discuss issues related to SEZs including relaxation of
norms.

After the inauguration of Kerry Reliable Logistics, he told reporters
here that there were over 20 SEZs, which had obtained in-principle and
final approvals and were to be notified in Tamil Nadu. He urged the
Centre to relax norms or clear SEZ proposals where land acquisition was
not an issue.

Mr. Maran said the land component of any SEZs in Tamil Nadu was not more
than 500 acres. The State had promoted compact SEZs on 200-250 acre
plots acquired by the SIPCOT, the nodal agency to implement
infrastructure development schemes. He said Chief Minister M.
Karunanidhi had written to the Prime Minister, noting that big investors
like Feng Tay Enterprise and Nike Shoes' OEM supplier might move out of
India if the uncertainty continued.

Last year, Hong Kong headquartered Growth-Link Overseas Company, a
subsidiary of Taiwan-based shoe major Feng Tay Enterprise Co Ltd. and
leading original equipment manufacturer supplier to Nike, announced
plans to invest Rs. 300 crore in setting up a shoe manufacturing
facility on over 300 acres at Cheyyar, 90 km from Chennai.
http://www.hindu.com/2007/03/31/stories/2007033119920800.htm