CPI(M) wants ceiling on SEZs to be reviewed

Our Bureau

`The SEZ policy announced is totally inadequate'

--------------------------------------------------------------------------------
The CPI (M) did not agree with State Governments not being involved in
acquisition of land, particularly for those of a larger size.
--------------------------------------------------------------------------------

New Delhi April 6 The Communist Party of India (Marxist) said on Friday
that the Government should await the recommendations of the Standing
Committee on Commerce and re-examine the whole matter on special
economic zones (SEZs).

The Polit Bureau of the CPI (M) said that a multi-product SEZ should
have a minimum specified size of only 400 hectares (1,000 acres) and a
ceiling of 2,000 hectares (5,000 acres).

Pegs ceiling

The Empowered Group of Ministers (EGoM) on SEZs had on Friday decided to
peg the ceiling on multi-product SEZs at 5,000 hectares (12,500 acres).

It, however, did not disturb the existing minimum size of 1,000 hectares
(2,500 acres) for multi-product SEZs.

Stating that the changes in SEZ policy announced by the EGoM was totally
inadequate and fell far short of what was required, the CPI (M) Polit
Bureau noted that it has ignored the comprehensive suggestions made by
the Left parties.

"The UPA Government should realise that the political parties across the
board have come out against the present SEZ Act and rules. If the
Government proceeds with the SEZs in the present form, the matter will
have to be taken up in Parliament so that the demand for amendments to
SEZ Acts and rules can be dealt with there," a statement issued by CPI
(M) Polit Bureau said.

Iniquitous Tax

The CPI (M) did not agree with State Governments not being involved in
acquisition of land, particularly for those of a larger size.

"There has to be State intervention to ensure that if any land is being
bought, the farmers and others working on land get a fair price. In the
absence of any changes in the Land Acquisition Act and a rehabilitation
policy that can be legally enforceable, the licence being given to
corporates to buy land on a large scale will be harmful," the statement
added.

The CPI (M) said that the EGoM has left the "exorbitant and unjustified"
tax concessions intact.

http://www.thehindubusinessline.com/2007/04/07/stories/2007040704591000.htm