SEZs back on track, cut to size

PRESS TRUST OF INDIA
Posted online: Thursday, April 05, 2007 at 1538 hours IST
Updated: Thursday, April 05, 2007 at 1634 hours IST





NEW DELHI, APRIL 5: Bowing to political pressure, the Centre on
Thursday decided that no SEZ would be allowed beyond 5,000 hectares of
land and states will not acquire land for industry.
In the middle of a raging debate on SEZ policy, especially in the wake
of the Nandigram violence, the empowered Group of Ministers took these
decisions.

At the same time, the eGOM, headed by Foreign Minister Pranab Mukherjee,
gave a clear signal that new SEZ norms would not compromise the
industrialisation process and lifted the freeze, clearing 83 new projects.

"No state can compulsorily acquire land from farmers through Land
Acquisition Act," Commerce Minister Kamal Nath said, adding that
promoters would have to themselves go to farmers and acquire land at
commercial rates.

Further, the states would be empowered to reduce the size of SEZs below
the 5,000 hectare limit set by the Centre.

Nath said under the new Relief and Rehabilitation Policy, which would be
finalised soon, at least one member of the displaced family would have
to be employed in the project.

This would be in addition to the compensation paid to farmers.

With the freeze lifted, the government would approve all pending
applications where there is no land dispute.

Of the 234 SEZs with formal approvals, 63 have already been notified,
while 83 more were today cleared for notification. The Board of
Approvals will now take up 162 SEZs with in-principle approval and 140
pending applications.

The decision on limiting the size would hurt plans of companies such as
Reliance Industries, besides real estate players DLF and Omaxe, which
plan to set up mega SEZs.

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