SEZs are here to stay, says Manmohan

POLITICAL BUREAU
Posted online: Saturday, March 24, 2007 at 0000 hours IST

NEW DELHI, MAR 23: Prime Minister Manmohan Singh on Friday admitted to
certain problems in the Centre's SEZ policy. Addressing a conclave, the
Prime Minister, however, asserted that the SEZ was here to stay.
"These decisions are in many ways irreversible," Singh said. Making it
clear that there was no going back on the SEZ, he observed: "If there
are gaps in its design or in its implementation, we should halt a little
bit."

Against the backdrop of Nandigram police firing, the Prime Minister said
he does "believe that we should address these concerns if we want the
policy to succeed in the long run." He went on to assure that the
government was formulating a "humane and just policy on resettlement of
those who lose their lands." He said the "SEZ as an instrument of
economic policy has come to stay. But in the process of implementation,
we have been exposed to certain problems which cannot be dismissed." He
also said the "cost of delay was going to be much less than the cost
that would arise if wrong policies were forcibly adopted." He reiterated
that if the government found certain flaws in the policy, it would set
in motion a mechanism to redress those gaps."

It may be mentioned that the Board of Approval in the commerce ministry,
the nodal agency for SEZs, has so far given final approval to 237 zones
and in-principle nod to another 166. Approvals, however, have been kept
on hold for the past few months. The Prime Minister added: "India is a
democracy and democracy sometime seems to be fickle-minded". He,
however, maintained that "democracy was the strength of the country.'

On another issue, the Singh maintained that a common currency for Asian
countries in the line of Euro for European nations was some years ahead.
"Time has not yet arrived for a common Asean currency like Euro," Singh
observed. He felt a this currency would require "more coordinated
efforts and might become a reality in near the future."

On the issue of exploring Asian funds for infrastructure, he said the
government was "confident that rising levels of savings will largely
meet fund requirements for infrastructure." The Prime Minister also
favoured a "strong vibrant debt market for long-term funds for the
infrastructure sector." He felt the public-private partnership "has
begun to show results in ports, airports and other infrastructure sectors."

With the Saarc Summit to be held next month, the Prime Minister said
India wanted its neighbours to feel secure and confident that "in New
Delhi they have a wellwisher".

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