New SEZs may not have golf courses, amusement parks

New SEZs may not have golf courses, amusement parks
RAJAT GUHA & SUBHASH NARAYAN

TIMES NEWS NETWORK[ MONDAY, MARCH 26, 2007 12:34:26 AM]

NEW DELHI: The government is considering framing new rules for housing
and recreational activities in upcoming SEZs. Large-scale recreational
activities, such as construction of golf courses and amusement parks,
may not get approval in new SEZs.

Also, only 25% of the approved housing may be allowed during the initial
phase, with the remaining construction being permitted in phases
depending upon the progress made by the SEZ developer.

The changes are likely to be incorporated in the rules for setting up
SEZs, a government official said. The rural development ministry is also
in favour of the proposal as it would limit land requirement for
projects. Due to widespread farmer unrest and violence, the government
wants to tread cautiously while allocating land for SEZs.

As per the proposal, setting up of golf courses or other recreational
facilities with large land requirement may be included in a negative
list of activities permitted in a SEZ.

The entire land acquisition for SEZs would also be undertaken by
limiting the minimum area of land for core functions and a small portion
for allied functions.

"There should be a symbiotic relationship between core and allied
functions. Construction of golf courses and other such recreational
activities are not in consonance with core functions under SEZ," the
official said.

The changes may also require an SEZ promoter to construct just 25% of
the approved housing for the project in the first phase. The approval
for the remaining construction may be given in three phases depending
upon the development of the SEZ. The changes are likely to be included
to restrict land requirement for non-core functions.

While the commerce ministry is working on the new changes, sources said
the rural development ministry may also suggest the creation of a new
authority in the new rehabilitation and resettlement policy that would
come up for Cabinet approval soon.

The proposed authority would first vet land requirements suggested by a
SEZ developer before forwarding it for approvals. Non-core activities,
such as setting up recreational facilities, may be axed at this stage.

rajat.guha@timesgroup.com

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