Indian government lifts freeze on SEZ’s
India’s Empowered Group of Ministers on Special Economic Zones has to lift the current freeze on SEZs, with tighter rules and prescribed a ceiling on the size of SEZs, which has now been fixed at an upper limit of 5000 hectares. A comprehensive rehabilitation policy is being finalized, which would include employment to at least 1 person from each displaced family.
Mr Kamal Nath union minister of commerce & industry announced that the following decisions were taken at the EGOM meeting
- Upper limit of the area required for multi product SEZs to be fixed at 5000 hectares. However, state governments may prescribe a lower limit.
- The minimum processing area limit be fixed uniformly at 50% for multi product SEZs as well as sector specific SEZs. Earlier, the minimum processing area requirement for multi product SEZs was 35%, with a provision for relaxation up to 25% by the board of approvals and it was 50% for sector specific SEZs).
- In respect of pending applications for SEZs, these may be processed for in principle, formal approval, notifications subject to the condition that the State Governments would not undertake any compulsory acquisition of land for such SEZs.
- Notification in respect of the 83 cases of formal approvals, documents for which have been submitted by the developers may be issued by the department of commerce after due verification, including issues concerning any dispute relating to land.
- In respect of other formal approvals, notifications may be issued as and when the proposals are received and verification procedures are completed.
Ministry of Rural Development is requested to reformulate a comprehensive land acquisition act to address all relevant issues. A comprehensive Resettlement and Rehabilitation Policy will be worked out ensuring livelihood from the project to at least one person from each displaced family.
The nodal authority for approving SEZ proposals has so far okayed 234 proposals. The 234 SEZs are projected to cover an area of 33,808 hectares.
Industry chambers welcomed the decision to restart the process of granting approvals to SEZs. Associated Chambers of Commerce and Industry of India welcomed the decision to set a ceiling of 5,000 hectares for SEZs and described it as a praiseworthy step that will settle for good the controversies over SEZs”. The Confederation of Indian Industry hoped that the decision would put an end to compulsory land acquisition by state governments and limits on the size of SEZs will end the ambiguity about their future. The Federation of Indian Chambers of Commerce and Industry said that the decision will clear uncertainties and give a clear signal that SEZs are here to stay.
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