State’s SEZ plans go for a six

GIRISH KUBER

TIMES NEWS NETWORK[ MONDAY, APRIL 09, 2007 03:28:52 AM]

MUMBAI: The new rules guiding the special economic zones (SEZ) may put a
question mark on six sanctioned projects in Maharashtra, home to the
largest number of SEZs.

The empowered group of ministers had on Thursday stopped state
governments from acquiring land for SEZs promoted by private players.
The rules are applicable to SEZs cleared after February 10, 2006.

This means states will not be able to fulfil the promise of ensuring
cost-effective land acquisition for the SEZs cleared after the
cut-off-date. The developers will now have to buy land directly at
market price without any support from state governments.

Of the 72 SEZs proposed in Maharashtra, government agencies are involved
in as many as 24. Of these, 18 may not face any hurdle since they were
cleared before the cut-off-date. "We don't know what will happen to the
remaining six," a top official from the industry ministry said. The SEZs
in question are promoted by Bharat Forge, in Khed near Pune (5,000
acres); Mahindra Gesco, near Pune (2,700 acres); Videocon, one in
Aurangabad (5,000 acres) and another in Pune (2,500 acres); Supreme
Petro, in Raigad(250 acres); and the Reliance Group, the Maha Mumbai SEZ
near Mumbai (35,000 acres).

The Maharashtra Industrial Development Corporation (MIDC) is a partner
in five of these projects except that of Reliance. "We have joint
venture agreements in place for these five SEZs. What will happen to
them in the wake of the eGoM order, we don't know. We will have to wait
for some clarity on the issue," an MIDC official said.

For Maha Mumbai SEZ, the state government had chipped in by invoking the
Land Acquisition Act 1894. "Henceforth, the company will have to go out
on its own to acquire land," a state official associated with the
exercise said.

Though the company has announced plans to buy land directly from
farmers, the state government's decision to impose Section 4 (1) of the
Act virtually froze the land for any other purpose. The Section 4(1)
arms state governments with the power to notify any land they want for
'public purpose'. Once imposed, the section is valid for 12 months.
After the Centre's direction to state governments to stay clear of land
acquisition, the validity of the section is uncertain.

When contacted, the spokesperson for Maha Mumbai SEZ refused to discuss
the issue. State government officials said first they have to get the
Centre's order. "By Tuesday, we expect to receive a copy of the order,"
said a government official.

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