Noose around SEZs tightened

Purchases from domestic tariff area to be treated as imports

ARUN S & SUNNY VERMA
Posted online: Friday, June 29, 2007 at 0044 hours IST

NEW DELHI, JUN 28: The government is planning to treat 'certain' goods
purchased by special economic zones from the domestic tariff area (DTA)
as imports. This is aimed at preventing the misuse of tax incentives by
SEZs.
At present, these are treated as just purchases and not as imports. This
will force SEZ units to substantially increase exports to meet the net
foreign exchange (NFE) criterion specified in the SEZ Act.

The NFE requires SEZ units to export more than what they import over a
five-year period after production starts. Experts see it as a retrograde
step, which could jeopardise the entire operational flexibility
available to SEZs and reduce investment in such zones.

Government officials, however, said SEZ units would require to export a
major chunk of their production instead of selling it in the domestic
market. The finance and the commerce ministries have finally agreed on
treating purchases from DTA as imports. The SEZ Rules would be modified
soon, they said.

A government official said, after SEZ Rules changes were brought in,
"any supply from DTA to an SEZ unit —which results in benefits under the
Foreign Trade Policy—will be treated as imports, and hence liable for
export obligations."

Fresh Curbs
• Imports by SEZs Rs 1 crore
• Domestic buying by SEZs Rs 50 lakh
• Total procurement (import + domestic) Rs 1.5 crore
(As domestic procurement will now be treated as import)
• Value addition by SEZs (say 10%) Rs 15 lakh
• Total product value Rs 1.65 crore

Purchases where export-related benefits —the advance advance licence
scheme, duty entitlement passbook scheme, duty-free import entitlement
certificate and the duty drawback benefits—are availed of will be
treated as imports.

Experts said these changes would defeat the purpose behind setting up
SEZs—that of generating additional economic activity.

"It will affect their operational flexibility and further discourage
both backward and forward integration of SEZs with the domestic market,"
said Lalit B Singhal, director-general of Export Promotion Council for
export oriented units and SEZs. The finance ministry had earlier pointed
out that some SEZ units were selling goods in the domestic market
instead of exporting them— the main purpose of SEZs.

In fact, during a meeting of an empowered group of ministers on SEZs in
January, it was proposed that zones be denied tax benefits unless they
fulfilled their 50-70% export obligation. The fresh move is being seen
as a compromise formula between the finance ministry and commerce
department.

Proposed norms
• If domestic procurement is counted as imports, SEZs will have to
compulsorily export goods worth Rs 1.5 crore to meet the positive net
forex criterion
Current norms
• SEZs are entitled to sell domestically goods worth Rs 51 lakh and
required to export goods worth only Rs 1 crore to meet the positive NFE
criteria

http://www.financialexpress.com/fe_full_story.php?content_id=168569

BoArd not to be SEiZed of basics

AMITI SEN

TIMES NEWS NETWORK[ MONDAY, JUNE 25, 2007 12:27:54 AM]
 
NEW DELHI: In a move that would expedite setting up and operationalisation of special economic zones (SEZ), the government has decided to allow developers to carry out a number of operations including building of roads and boundary walls as soon as the zones are notified without seeking the permission of the board of approvals (BoA) on SEZs.

Other operations such as setting up the manufacturing area, schools, shopping complexes and hospitals would, however, continue to require authorisation certification from the BoA.

Speaking to ET, commerce ministry sources said the BoA members, in their meeting on Friday, decided to identify a number of essential operations that could be allowed without government scrutiny. The operations identified for automatic clearance include setting up of roads, boundary walls and water and power distribution systems.

“It was recognised by all members that there were a number of default activities that had to be automatically allowed and should not require special permission. The activities will be mentioned in the minutes of the meeting that will be published soon,” an official said.

Other activities such as construction of the production area and building of shopping complexes, schools and hospitals would continue to require the BoA’s nod. “The activities falling within the processing and non-processing areas have to be monitored to ensure the given parameters are not breached,” the official said.

As per SEZ rules, the processing area for all SEZs cannot be less than 50% of the total area. The housing, schooling and other facilities have to be in proportion to the number of employees working in the SEZs.

With the relaxed authorisation rules, SEZ developers will now have the freedom to start putting in place the essential infrastructure as soon as they get their zones notified without waiting for the BoA to meet. “Developers will not have to bide time till the BoA decides to meet. Work can start as soon as the notification appears,” the official said.
 
 
http://economictimes.indiatimes.com/News/Economy/Infrastructure/BoArd_not_to_be_SEiZed_of_basics/articleshow/2145716.cms

--

 

 

 

 

Sudarshan Rodriguez,

Senior Research Associate,

Ashoka Trust for Research in Ecology

and the Environment (ATREE)

 

CHENNAI

Flat 2B, Aditya Apartments,

38 Balakrishna Road,

Valmiki Nagar, Thiruvanmiyur,

Chennai-600 041

Tamil Nadu, India.

Phone:+91 44 420 19470

Fax: +91 44 420 19468

 

BANGALORE

Ashoka Trust for Research in Ecology and the Environment

No 659, 5th ‘A” Main, Hebbal,

Bangalore 560024

Direct line: 080 - 65356130

Tel: +91 80 23533942, 23530069, 23638771

Fax: +91 80 23530070

 

Mobile: +91 9840680127

Email: sudarshanr@yahoo.com

Post- Tsunami Environment Initiative

(www.ptei-india.org)

 

You are not what you do , you do what you are

One's profession and career should be their  hobby, passion and cause

States get 60-day deadline to clear SEZ proposals

AMITI SEN

TIMES NEWS NETWORK[ WEDNESDAY, JUNE 27, 2007 03:19:08 AM]

NEW DELHI: The Centre has warned state governments that if pending state
approvals for proposed SEZ projects are not granted within 60 days, the
proposals would be taken off the list of cases to be considered by the
board of approvals (BoA) for SEZs. As many as 170 SEZ proposals lying
with the commerce department are still to receive the go-ahead from the
respective state governments, where they are to be set up. Reliance
ADAG's proposal for a multi-product SEZ in Noida also figures in the
list as the Mayawati regime has withdrawn the state's approval.

Speaking to ET, commerce ministry officials said at the BoA meeting on
June 22, it was decided that the board would not keep holding on forever
to proposals that had not received state government nod. It was decided
that letters would be sent to states asking them to take a decision on
the pending proposals within 60 days. "Two months is long enough for
states to decide whether they want to back a proposal or not. If they do
not respond by the given time, the proposals may be taken off the list
and developers would have to re-apply," an official said.

Officials said if the states act immediately, a number of pending
proposals can be taken up at the next BoA meeting scheduled for July 12.
"Till date, there are just 19 proposals on the list for the next BoA
meet. As we can take up to 40 proposals in a meeting, if state
governments hurry, a number of pending proposals can be taken up at the
next meeting," the official said.

The recently sworn-in Mayawati government in UP, however, is expected to
take its time to grant approval to projects. The UP government has
revoked its approval for private sector SEZs that were pending with BoA
on grounds that they needed to be scrutinised again.

A total of 339 SEZs have received formal approval so far, of which 126
have been notified. In all, Rs 35,145 crore has been invested in these
zones, which have created 32,578 direct jobs.

http://economictimes.indiatimes.com/News/Economy/Infrastructure/States_get_60-day_deadline_to_clear_SEZ_proposals/articleshow/2152296.cms

'No forcible eviction from farmland for SEZs'

IANS[ SUNDAY, JUNE 17, 2007 12:09:07 PM]
 
NEW DELHI: Displacement of people from land sought for special economic zones (SEZs) will be purely voluntary and no forcible land acquisition will be made, Rural Development Minister Raghuvansh Prasad Singh has assured.

Singh, whose ministry has a draft rehabilitation package ready for people who are displaced from their farmland to make way for SEZs, also assured that the compensation in such cases would be attractive and offered before acquisition.

"Even if the rehabilitation package is attractive, it fails to serve its purpose when the people start agitating and hold demonstrations," Singh, who personally fashioned the finer points of the package, told IANS in an exclusive interview.

"The policy seeks to end forcible acquisition of farmers' land. And in the case of agreed acquisition, the rehabilitation package will be awarded to affected people before displacement," added Singh, who has a doctorate in mathematics.

"The displacement should take place only when it is absolutely necessary and fully voluntary."

Piloted by the rural development ministry, the government proposes to enact a new law - Resettlement and Rehabilitation Act - and the relevant bill is being examined by the law ministry.

The government also proposes to amend the Land Acquisition Act to give the new law an overriding effect over the Land Acquisition Act and the Special Economic Zone Act.

The concept of SEZ, seen as a prime mover of the Indian economy, came under criticism after farmers opposed forced land acquisitions for such projects at many places across the country, especially in Nandigram in West Bengal where 14 people were killed in police action against protestors March 14.

In the freewheeling interview, Singh, 61, who represents the Vaishali constituency of Bihar in the Lok Sabha, said that his party, the Rashtriya Janata Dal (RJD), had started preparations to expand its base beyond its pocket borough in Bihar and Jharkhand with a nationwide ambition.

He said his party had won seats in the Manipur assembly and also has a presence in Maharashtra and West Bengal. "People in other states look up to the RJD. But so far we have ignored their aspirations," he said.

"The whole purpose was that the party should grow in strength all over the country. Only then we will be able to fight the communal forces," Singh said and added that the party was formed to empower minorities and the socially weak.

Singh also sought to play down criticism against his party chief and Railway Minister Lalu Prasad that he was ignoring his home state Bihar and spending too much time in New Delhi only to nurse his aspirations to become prime minister.

Even the decision to hold the national executive meeting of the party in the capital last week did not go down well with the cadre.

"All kinds of people keep making all kinds of speculations. This has nothing to do with any of that. What's wrong with holding it in Delhi? It is well connected to every corner of the country," Singh asserted.

"People from all over the country were coming for the national executive meet. So holding it in Delhi facilitated their travel. But the national convention will be held in Sarnath on Aug 25."

The rural development minister also justified his party's total endorsement of every action taken by the United Progressive Alliance (UPA) government and said everything was being done as per the national common minimum programme.

"We don't want to do anything that could weaken this alliance and strengthen the communal forces. We neither want to nor will do anything that would encourage communal forces."
 http://economictimes.indiatimes.com/News/Economy/Infrastructure/No_forcible_eviction_from_farmland_for_SEZs/articleshow/2129013.cms
 

--

 

 

 

 

Sudarshan Rodriguez,

Senior Research Associate,

Ashoka Trust for Research in Ecology

and the Environment (ATREE)

 

CHENNAI

Flat 2B, Aditya Apartments,

38 Balakrishna Road,

Valmiki Nagar, Thiruvanmiyur,

Chennai-600 041

Tamil Nadu, India.

Phone:+91 44 420 19470

Fax: +91 44 420 19468

 

BANGALORE

Ashoka Trust for Research in Ecology and the Environment

No 659, 5th ‘A” Main, Hebbal,

Bangalore 560024

Direct line: 080 - 65356130

Tel: +91 80 23533942, 23530069, 23638771

Fax: +91 80 23530070

 

Mobile: +91 9840680127

Email: sudarshanr@yahoo.com

Post- Tsunami Environment Initiative

(www.ptei-india.org)

 

You are not what you do , you do what you are

One's profession and career should be their  hobby, passion and cause

Industrial zone planned in 9 SEZ villages

 
GIRISH KUBER

TIMES NEWS NETWORK[ MONDAY, JUNE 18, 2007 12:57:46 AM]
 
MUMBAI: The Maharashtra government’s special land acquisition officer has recommended the removal of nine villages from the list of 45 earmarked for setting up the Maha Mumbai SEZ.

The official has contended that these villages have already been reserved by the government, in 2003, for a township and an industrial zone, and substantial investments have already been made for these purposes.

The officer’s report, a copy of which is with ET, states that large parts of land in these villages have been mortgaged to raise money for various industries. The report was submitted to the state revenue department in the second week of May.

The Maha Mumbai SEZ is promoted by the Reliance group. When contacted, the company spokesperson refused to comment.

These nine villages are among the 45 where the state government has served notices under Section 4 of the Land Acquisition Act 1894. The notices served last year are meant to seek suggestions/objections from landowners on the government’s decision to acquire their land for the SEZ. As per the procedure, the Section 4 notices were followed by personal hearing under Section 5 of the same Act. Under this, the state’s special land acquisition officer listens to every individual whose land is being acquired for the project.

While listening to the villagers, the officer discovered that the land has already been reserved in these villages. The SEZ Act allows taking over of land that has not been reserved for any other purpose. The officer, as per the procedure, has recommended the publication of notification in the government gazette. The government, however, is yet to act on it. 
 http://economictimes.indiatimes.com/News/Economy/Infrastructure/Industrial_zone_planned_in_9_SEZ_villages/articleshow/2129767.cms
 

--

 

 

 

 

Sudarshan Rodriguez,

Senior Research Associate,

Ashoka Trust for Research in Ecology

and the Environment (ATREE)

 

CHENNAI

Flat 2B, Aditya Apartments,

38 Balakrishna Road,

Valmiki Nagar, Thiruvanmiyur,

Chennai-600 041

Tamil Nadu, India.

Phone:+91 44 420 19470

Fax: +91 44 420 19468

 

BANGALORE

Ashoka Trust for Research in Ecology and the Environment

No 659, 5th ‘A” Main, Hebbal,

Bangalore 560024

Direct line: 080 - 65356130

Tel: +91 80 23533942, 23530069, 23638771

Fax: +91 80 23530070

 

Mobile: +91 9840680127

Email: sudarshanr@yahoo.com

Post- Tsunami Environment Initiative

(www.ptei-india.org)

 

You are not what you do , you do what you are

One's profession and career should be their  hobby, passion and cause

Congress to launch protest against Nandagudi SEZ

PTI[ FRIDAY, JUNE 22, 2007 06:30:18 PM]

BANGALORE: Slamming the Karnataka government on the issue of acquisition
of land for special economic zones, the opposition Congress on Friday
said it would launch a protest from next month against the SEZ proposed
to be set up at Nandagudi on the city's outskirts.
It will chalk out an agitation programme, including protest rallies to
be staged in Bangalore urban and rural districts, at its legislature
party meeting to be held on July 3 or July 4, ahead of the assembly
session commencing from July 5.
"The BJP-JD-S coalition government is on a land acquisition spree to
help land developers," state Congress president M Mallikarjun Kharge
alleged at a press conference here.
The proposal to set up a SEZ on 1200-odd acres at Nandagudi in Hoskote
taluk, about 50 km from here, has drawn flak from farmers and Left parties.
Kharge alleged that the government was acquiring land in excess and the
allotted land was being sold to developers. He asked: "Is it a
pro-farmer government?"
Noting that his party was against "indiscriminate" acquisition of farm
land and "injustice" towards farmers, Kharge said it was not opposed to
development including industrial development.
He said there were clear-cut guidelines issued by the Centre against
acquiring farm land for SEZs and alleged that the government had been
violating them.
The government has clarified that it is not acquiring land for SEZs and
entrepreneurs will purchase land at the prevailing market rates.

http://economictimes.indiatimes.com/News/Economy/Infrastructure/Congress_to_launch_protest_against_Nandagudi_SEZ/articleshow/2141782.cms

Mukesh SEZs approved

Mukesh SEZs approved

ECONOMY BUREAU
Posted online: Saturday, June 23, 2007 at 0021 hours IST

NEW DELHI, JUN 22: The Centre on Friday formally approved three special
economic zones (SEZs) promoted by Mukesh Ambani's Reliance Industries
Ltd (RIL) and one by his brother, Anil Ambani. These were among the 36
SEZs that were formally approved by the government and another nine that
obtained in-principle clearance.
The Board of Approval (BoA) gave its formal nod to the Mukesh
Ambani-promoted Navi Mumbai SEZ Pvt Ltd's proposals for projects related
to biotechnology (63.74 hectare), light engineering (179 hectare) and
pharmaceuticals (103.25 hectare) inMaharashtra. Another RIL proposal for
a 1,250-hectare multi-product SEZ would be considered at the next BoA
meeting on July 12, as it was earlier deferred following the revenue
department's objections on contiguity, lack of alternate access roads
for local villages and their disconnect with water bodies.

BoA chairman and commerce secretary GK Pillai said the promoters and the
Maharashtra government had already given their comments on the stalled
SEZ. The Maharashtra government has approved the project. Though RIL
initially planned a single SEZ in Navi Mumbai, sources said it later
decided to split the zone into four projects in order to bypass the
contiguity issue and avoid procedural roadblocks.

The BoA also gave its formal approval to the 18.26-hectare IT/ITeS SEZ
belonging to Anil Ambani's Reliance Infocom Infrastructure Pvt Ltd at
the Dhirubhai Ambani Knowledge City in Maharashtra.

The BoA gave its nod to the Foxconn-promoted 11-hectare electronic
hardware SEZ at Sriperumbudur in Tamil Nadu. The company supplies
hardware to Motorola and Nokia. Foxconn, which already has an SEZ, plans
to invest $400 million in the new project.

Green Signal
• RIL proposal for 1,250-hectare SEZ to be considered at July 12 BoA meet
• Anil Ambani's 18.26-hectare IT/ITeS SEZ in Maharashtra also approved
• Barring Bihar and the northeast, SEZs have been approved in all states
• SEZs with complaints of compulsory land acquisition would not be notified

The Centre also said state governments would undertake the acquisition
of land for SEZs only when all the affected landowners gave their
consent. Pillai told state government representatives that SEZs with
complaints of compulsory land acquisition would not be notified.

It was also clarified that to the extent possible, double-crop and
multiple-crop land should not be acquired.

"Now, barring Bihar and the northeast, SEZs have been approved in all
states. Bihar and the northeast have been left out as no application has
been received from those states," Pillai said.

Seven proposals were deferred, including two for multi-product SEZs by
Skil Infrastructure. The company did not meet the net worth requirement.
http://www.financialexpress.com/fe_full_story.php?content_id=167987

Government clears 36 SEZ proposals

AGENCIES
Posted online: Friday, June 22, 2007 at 1323 hours IST
Updated: Friday, June 22, 2007 at 1328 hours IST




NEW DELHI, JUNE 22: The government panel on Special Economic Zones on
Friday cleared 36 proposals, including three zones jointly promoted by
RIL chief Mukesh Ambani and Anand Jain, while granting in-principle
approval to nine others.
The Board of Approval, which met here on Friday, also cleared Anil
Ambani group firm Reliance Infocomm's IT SEZ in Dhirubhai Ambani
Knowledge City in Maharashtra.

Among those that received in-principle approval was a multi-product zone
in Midnapore, which will be the first such in West Bengal.

The Mukesh Ambani-Anand Jain promoted projects that were cleared are
product specific zones -- biotechnology, light engineering and
pharmaceuticals -- and would cover an area of 346 hectare in Navi Mumbai.

Also to receive clearance was a hardware manufacturing SEZ promoted by
Foxconn, which plans to eventually scale up the zone's size to 100 hectare.
http://www.financialexpress.com/latest_full_story.php?content_id=167903

BoA meets today to take up 46 SEZs

 
Posted online: Friday, June 22, 2007 at 0046 hours IST
 
       
 
 
NEW DELHI:  Having cleared over 200 SEZ proposals, the BoA will on Friday take up 46 fresh cases that include those of RIL CMD Mukesh Ambani, Anil Ambani group's Reliance Infocom, DLF Ltd and GMR Hyderabad International Airport. IT, ITeS and biotechnology sectors dominate the list of projects awaiting the Centre’s nod, with as many as 23 proposals awaiting clearnace.
—PTI
http://www.financialexpress.com/fe_full_story.php?content_id=167838
 

--

 

 

 

 

Sudarshan Rodriguez,

Senior Research Associate,

Ashoka Trust for Research in Ecology

and the Environment (ATREE)

 

CHENNAI

Flat 2B, Aditya Apartments,

38 Balakrishna Road,

Valmiki Nagar, Thiruvanmiyur,

Chennai-600 041

Tamil Nadu, India.

Phone:+91 44 420 19470

Fax: +91 44 420 19468

 

BANGALORE

Ashoka Trust for Research in Ecology and the Environment

No 659, 5th ‘A” Main, Hebbal,

Bangalore 560024

Direct line: 080 - 65356130

Tel: +91 80 23533942, 23530069, 23638771

Fax: +91 80 23530070

 

Mobile: +91 9840680127

Email: sudarshanr@yahoo.com

Post- Tsunami Environment Initiative

(www.ptei-india.org)

 

You are not what you do , you do what you are

One's profession and career should be their  hobby, passion and cause

Industrial zone planned in 9 SEZ villages

GIRISH KUBER

TIMES NEWS NETWORK[ MONDAY, JUNE 18, 2007 12:57:46 AM]

MUMBAI: The Maharashtra government's special land acquisition officer
has recommended the removal of nine villages from the list of 45
earmarked for setting up the Maha Mumbai SEZ.

The official has contended that these villages have already been
reserved by the government, in 2003, for a township and an industrial
zone, and substantial investments have already been made for these
purposes.

The officer's report, a copy of which is with ET, states that large
parts of land in these villages have been mortgaged to raise money for
various industries. The report was submitted to the state revenue
department in the second week of May.

The Maha Mumbai SEZ is promoted by the Reliance group. When contacted,
the company spokesperson refused to comment.

These nine villages are among the 45 where the state government has
served notices under Section 4 of the Land Acquisition Act 1894. The
notices served last year are meant to seek suggestions/objections from
landowners on the government's decision to acquire their land for the
SEZ. As per the procedure, the Section 4 notices were followed by
personal hearing under Section 5 of the same Act. Under this, the
state's special land acquisition officer listens to every individual
whose land is being acquired for the project.

While listening to the villagers, the officer discovered that the land
has already been reserved in these villages. The SEZ Act allows taking
over of land that has not been reserved for any other purpose. The
officer, as per the procedure, has recommended the publication of
notification in the government gazette. The government, however, is yet
to act on it.

http://economictimes.indiatimes.com/News/Economy/Infrastructure/Industrial_zone_planned_in_9_SEZ_villages/articleshow/2129767.cms

BoA meet to decide Navi Mumbai SEZ’s fate

GIRISH KUBER

TIMES NEWS NETWORK[ MONDAY, JUNE 11, 2007 02:41:33 AM]

MUMBAI/DELHI: The Centre has set June 20 as the deadline for the
Maharashtra government to spell out its stand on the finance ministry's
reservations over the proposed Navi Mumbai SEZ. Maharashtra chief
secretary Johny Joseph is holding consultations with some of the
stake-holders in the Navi Mumbai SEZ. "Discussions are being held with
inhabitants of the five villages falling within the proposed zone and
also with the Jawaharlal Nehru Port Trust (JNPT), which has staked claim
to some of the land in the zone," commerce ministry officials told ET.

A spokesman for Navi Mumbai SEZ — the firm setting up the SEZ — refused
to comment.The Centre wants the Maharashtra government to give
point-by-point reply to the concerns voiced by the finance ministry in
its report submitted recently. "The s tate government's views will be
discussed in the Board of Approval (BoA) meeting scheduled for June 22,"
said a commerce ministry official.

A team headed by Sanjeev Behari, commissioner-customs & exports, visited
some of the Navi Mumbai SEZ areas on May 21 to assess the ground situation.

The central team's report has resulted in the BoA deferring its decision
to clear the Navi Mumbai SEZ twice in the past. The BoA has also raised
the issue of land contiguity which relates to a major road cutting
across the SEZ site.

The Navi Mumbai SEZ, however, doesn't have land-acquisition related
issues as the state-run agency Cidco has already acquired the land for
the project.

http://economictimes.indiatimes.com/News/Economy/Infrastructure/BoA_meet_to_decide_Navi_Mumbai_SEZs_fate/articleshow/2113118.cms

SEZ developers need to win farmers’ trust

GIRISH KUBER

TIMES NEWS NETWORK[ FRIDAY, JUNE 08, 2007 02:37:19 AM]

MUMBAI: The union commerce ministry on Thursday told the Maharashtra
government that no land acquisition for SEZs shall be completed till
farmers "willingly withdraw their objections" or "give consent to the
compensation package" offered by developers.

The clarification, in response to a query from the Maharashtra
government, puts paid to all plans for forcible land acquisition
anywhere in the country for any SEZ. Specifically, in Maharashtra, this
development puts the brakes on the state government's plan to commence
acquisition of land on Friday in 29 villages of Raigad district for the
Mahamumbai SEZ being promoted by Reliance.

The plan was to acquire land under Section 6 (1) of the Land Acquisition
Act 1894. Specifically, the clarification from the Centre means that the
state can still go ahead with the formalities involved in the Land
Acquisition Act, 1894, but cannot complete the actual process of
transfer to the SEZ developer, without getting the farmers' consent.

Acquisition under Section 6(1) allows the state government to override
objections from holders of the land being acquired. Given that farmer
groups had submitted 18,000 objections and threatened to launch a
wide-scale agitation against the imposition of Section 6(1) in the
district, the state government cannot transfer land to SEZs without
violating the Centre's policy on the subject, reiterated by the Commerce
ministry on Thursday.

"Our communiqu# to Maharahtra government is mean to interpret the SEZ
policy which has been announced and hence shall be applicable all over
India," a senior commerce ministry official told ET.

The commerce ministry communiqu# to the state government categorically
states that no land transfer shall take place unless farmers willingly
withdraw their objections to SEZ or give their consent to the
compensation package announced by the developers.

Farmers in the state have been accusing the state government of
"coercive land acquisition" for private developers. Pune recently
witnessed violent farmer protests over electronic giant Videocon's SEZ.

http://economictimes.indiatimes.com/News/Economy/Infrastructure/SEZ_developers_need_to_win_farmers_trust/articleshow/2107849.cms

Govt limits cap for SEZs to 5k hectare

SIDHARTHA

TIMES NEWS NETWORK[ FRIDAY, JUNE 08, 2007 02:00:28 AM]

NEW DELHI: In a move that could dampen the spirits of those hoping for a
review of the 5,000 hectare ceiling on special economic zones, the board
of approvals (BoA) has rejected a proposal from government-run Kandla
Port Trust to set up an SEZ spread over 6,100 hectare in Gujarat.

Instead, it has asked Kandla Port Trust to develop the SEZ on 5,000
hectare land, in line with the cap fixed by the empowered group of
ministers (EGoM) headed by Pranab Mukherjee in April this year.

The decision has already been communicated to the port authorities who
are not pleased with the move. The shipping ministry and Kandla Port
Trust are of the opinion that the land has been lying with the port for
years and, unlike with other developers, there is no fresh acquisition.

The commerce ministry, which administers the SEZ policy, and the
shipping ministry are now expected to approach the EGoM to seek a
clarification on how the land ceiling should be applied. Based on the
ministerial panel's decision, the BoA will fix a policy which will
decide if the cap holds good for all SEZs or only for those that acquire
land after a stipulated date.

But Kandla's experience sets the precedent for the likes of Reliance
Industries and DLF which have planned the country's largest SEZs. The
Mukesh Ambani group intends to set up the Maha Mumbai SEZ and Reliance
Haryana SEZ that would be spread over 10,000 hectare each, while DLF's
proposed zone in Gurgaon, Haryana, is intended to cover 8,097 hectare.
Omaxe too has plans to build an SEZ on over 6,000 hectare land in Alwar.

On Tuesday, Reliance got a go-ahead from the BoA to start work on 440
hectare land in Haryana. While the company is hopeful of not just
acquiring 10,000 hectare as it had originally planned but also of
getting the government green signal for the multi-product zone, sources
in the government said there was no move to relax the 5,000 hectare
ceiling at the moment.

"Reliance or anyone else who has a permission to set up an SEZ can start
construction once they have land and the necessary approvals. But we do
intend to ask them to stop expanding the zone the moment they reach
5,000 hectare," an official said.

While officials at Kandla may not be pleased with the BoA decision, it
does help the port trust start work since it ends months of uncertainty.
The port trust's proposal was first held up since the home ministry
wanted to put it through a security check.

http://economictimes.indiatimes.com/News/Economy/Infrastructure/Govt_limits_cap_for_SEZs_to_5k_hectare/articleshow/2107812.cms

RIL's three SEZs listed for clearance

PTI[ WEDNESDAY, JUNE 20, 2007 01:25:01 PM]

NEW DELHI: With the government still to clear their multi-product Navi
Mumbai SEZ, three other zones promoted by Reliance Industries Chairman
Mukesh Ambani and his close aide Anand Jain in the same area have been
listed for clearance at the Board of Approval's meeting on Friday.

"While we are awaiting response from the Maharashtra government on
objections of the Revenue Department on the 1,250 hectare multi-product
SEZ proposal in Navi Mumbai, three other product-specific zones in the
area will come up for approval," a highly placed source told media.

He said the three proposals are stand-alone single product SEZs spread
over 350 hectares of land.

Asked whether it was a move on the part of developers to overcome
contiguity issues in the Navi Mumbai SEZ, the official said these four
projects have been stand-alone proposals ever since the SEZ Act came
into force last year.

However, these zones were originally part of a single multi-product SEZ
mooted by SIDCO -- the original promoter of the Navi Mumbai project. But
after the new law came into force, its new promoter who had bought the
project from SIDCO decided to set up four zones there.

The multi-product SEZ in Navi Mumbai had run into difficulties following
objections from Revenue Department, which feared revenue leakage because
of a road passing through the zone. After examination, the department
gave it a clean chit as far as the issue of contiguity was concerned,
but raised other points.

The BoA had asked the promoters and the state government to respond to
the issues raised by the Finance Ministry. While the promoters have
replied, the Commerce Ministry is awaiting views of the state government.

http://economictimes.indiatimes.com/News/Economy/Infrastructure/RILs_three_SEZs_listed_for_clearance/articleshow/2136396.cms