Wednesday, March 21, 2007

Watchdog to run realty check in works

SUBHASH NARAYAN & RAJAT GUHA

TIMES NEWS NETWORK[ THURSDAY, MARCH 22, 2007 01:50:55 AM]


NEW DELHI: Even as the row over land acquisition for industrial projects
rages, a new authority is being set up to vet land requirements of SEZ
projects. The move is aimed at preventing SEZ projects from turning into
real estate ventures.

The rural development ministry has proposed that the authority should
scrutinise the demand for land by promoters before forwarding a case for
further approvals.

The authority would also undertake independent assessment of SEZ
projects and wield powers to scale down land requirements. The proposal
is expected to be included in the new rehabilitation and resettlement
(R&R) policy being finalised by the ministry. The policy is expected to
come up for Cabinet approval later this month, an official source said.

The proposed authority would examine the business model of companies
interested in setting up SEZs. "For example, if a developer or a company
comes up with a proposal to set up a 2,000-acre SEZ, the claim would be
scrutinised to ascertain whether the requirements are actual. The total
area allowed to a SEZ would be entirely based on technical requirements,
which would be done by independent assessors applying stringent
criteria," rural development ministry official said.

The creation of an independent authority is also expected prevent raging
land controversies like the one in Nandigram in West Bengal. It is
proposed that only the minimum amount of land necessary for core
functions and a small proportion for allied functions should be given
for SEZ projects.

The new policy may also propose a bar on multi-crop lands from being
used for SEZs. "Where use of farm land for SEZs cannot be avoided,
single-crop lands in rain-fed areas may be considered. Multi-crop lands
should be avoided to the maximum extent possible. Even in completely
unavoidable circumstances, these lands may be used only for strategic
requirements," the official said.

Degraded forest lands could also be considered for SEZ projects. "We
have proposed compensatory development of wastelands for the sake of
food security," he added.

http://economictimes.indiatimes.com/News/Economy/Infrastructure/Watchdog_to_run_realty_check_in_works/articleshow/1790871.cms

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