Government cautious on SEZs

Special Correspondent

Says it is up to the promoters to acquire the land and then seek approval

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Priority for SEZs coming up in backward areas
They are likely to generate 10 lakh jobs
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BANGALORE: The Karnataka Government is cautious on granting approval to
Special Economic Zones obviously after what has happened in West Bengal.

Minister for Industries Katta Subramanya Naidu replying to questions of
N.H. Shivashankar Reddy and others during Question Hour in the
Legislative Assembly on Monday said the State Government would not be a
party to acquiring land for the SEZs.

It was for the promoters of SEZs to acquire the land and approach the
Government for approval. This meant that the promoters had to pay market
price to the landowners.

He said approval for new SEZs had been kept on hold by the Centre for
the last six months pending report of the Group of Ministers (GoM).
There was lacuna in the rules framed by the Centre on SEZs, which
permitted real estate development.

The Minister said the State Government was keen on forming SEZs on its
own, particularly in Gulbarga and Bidar.

Among the 29 SEZs approved for the State so far, the Karnataka
Industrial Area Development Board had obtained permission for one SEZ
for the IT sector on 203 hectares of land with an investment of Rs. 49
crore, another SEZ for the automotive sector to come up at Shimoga on
169 hectares of land and with an investment of Rs. 38.61 crore and a
third for the food processing sector in Hassan on 15.73 hectares of land
with an investment of Rs. 534.58 crore. He said three of the 29 SEZs
approved so far had started functioning. Of the 29 SEZs, 19 were in
Bangalore Urban District, two each in Mangalore and Bangalore Rural
district, three in Hassan and one each in Shimoga, Belgaum and Mysore.

The anticipated investment in the 29 SEZs was over Rs. 14,000 crore of
which the domestic investment alone was Rs. 13,300 crore.

Thus, the foreign direct investment in the SEZs was not more than 10 per
cent of the total anticipated investments.

The SEZs were expected to provide job opportunities to nearly 10 lakh
people.

To another question of R. Roshan Baig, the Minister said the KIADB had
sanctioned 1,183 acres of land to the multinational companies in the
industrially developed areas adjoining Bangalore.

Water scarcity

Earlier, Deputy Chief Minister B.S. Yediyurappa, said the Government
would release adequate funds to mitigate the acute water scarcity in
several parts of the State.

Funds would not be a constraint in providing drinking water supply, Mr.
Yediyurappa added.

http://www.hindu.com/2007/03/27/stories/2007032703010300.htm