More moulding for SEZ rules; notification today

More moulding for SEZ rules; notification today

The empowered group of ministers will review ban on fresh approvals for
special economic zones on May 8

ARUN S
Posted online: Wednesday, March 21, 2007 at 0000 hours IST

NEW DELHI, MAR 20 : The much-anticipated empowered group of ministers
(eGoM) meeting to decide on lifting the freeze on the approval of
special economic zones (SEZs) is likely to be held on May 8.
The last eGoM in January was inconclusive on issues, including
rehabilitation of displaced people, assessment of environmental impact,
restructuring the Board of Approval (BoA), land use inside SEZs and a
cap on SEZs of different categories.

After the eGoM on May 8, the government will consider notifying only
those SEZ proposals, which have already received a formal nod from the
BoA and required clearances from respective state governments, sources
told FE. SEZs, which would be notified, should have documentary
evidences of no disputes regarding land acquisitions.

In most of the 171 proposals, which have the formal approval and are
awaiting notification, land has been acquired without any litigation and
by giving adequate compensation.

Recently, following the Nandigram violence, commerce and industry
minister Kamal Nath had said the forthcoming meeting of the eGoM would
consider those SEZ proposals where land was acquired without legal
hassles, separately from those facing disputes.

The Centre has also asked state governments to give details of land
acquisition and categories of land available with them.

In the zone
• The last eGoM was inconclusive on issues of rehabilitation, assessment
of environmental impact, etc
• SEZs, which would be notified, should have documentary evidences of no
disputes regarding land acquisitions
• In most of the 171 proposals that are awaiting notification, land has
been acquired without any litigation.

The commerce ministry has also fixed March 28 for the meeting of the
Board of Approval to take up issues like approvals for co-developer
status and authorised operations only for the 63 notified SEZs,
government sources told FE.

The ministry would also notify on Wednesday the latest amendments to SEZ
Rules, sources said. Major changes include the requirement that all
developers will have to get the formal approval (that is after procuring
the required land) within one year of getting the in-principle nod.

Besides, developers can now change their category of SEZ from IT/ITeS
(minimum area of 10 hectares) to sector-specific (minimum area of 100
hectares) to multi-product (minimum area of 1,000 hectares), once they
produce documents regarding the acquisition of additional land required.

Following the Prime Minister's observation that the government has
decided to await the formulation of a National Rehabilitation Policy
(NRP), the Centre had stopped issuing notifications after giving green
signal to 63 developers. The policy is being formulated by the rural
development ministry.

Reviving SEZs has also been flagged off by chief ministers of several
states, including Haryana, Gujarat, Karnataka, Tamil Nadu and Andhra
Pradesh, who have written to the members of the eGoM. The government has
also received requests to reconsider the ban from domestic and foreign
investors.

The 63 notified SEZs have so far brought in investments worth over Rs
13,500 crore and employed over 18,000 people.

http://www.financialexpress.com/fe_full_story.php?content_id=158445