The Hindu : Front Page : Karat demands changes in Special Economic Zone Act

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Wednesday, Sep 27, 2006
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Karat demands changes in Special Economic Zone Act

Special Correspondent

CPI(M) to send note to Government suggesting corrections

Prakash Karat

NEW DELHI: Amid the controversy over the creation of Special Economic Zones (SEZs), the Communist Party of India (Marxist) on Tuesday demanded urgent changes in the Act, and decided to send a comprehensive note to the Government suggesting corrections.

"The Act and Rules for SEZs provide large tracts of land to promoter companies. This will to lead to [the] largescale displacement of farmers, [and] meagre compensation and no alternative means of livelihood [for them]. On the other hand, [the] promoters are getting land cheaply, and they are going to make their fortunes out of real estate development and speculation," the party's Central Committee noted.

Addressing a press conference at the end of the three-day meet here, party general secretary Prakash Karat said indiscriminate approvals for SEZs had serious implications for agriculture, food security, the interests of farmers, and economic sovereignty. The interests of agricultural workers, who were dependent on the land, had not been taken into account.

The party suggested some guidelines on the West Bengal model. First, there should be a cap on the amount of land allotted. At present, the clause was only for a minimum allotment and not a ceiling. In one case, the land allotted for multi-purpose activity was to the tune of 10,000 hectares. Second, as against the present 25 per cent land use for industry and the rest for other purposes, it should be made 50:25:25 — 50 per cent for industry, 25 per cent for related infrastructure, and the rest for other purposes. Third, tax exemption proposals must be reviewed, and exemptions drastically pruned.

Adequate compensation

Adequate steps to compensate and rehabilitate those displaced must be taken, it said, and suggested suitable amendment of the Land Acquisition Act. The SEZs, the party emphasised, should be set up only with the approval of the State Governments.

The Central Committee had authorised the Polit Bureau to prepare a comprehensive stand on the issue, and mobilise support from other political parties for amendments and changes.

Mr. Karat said the party would get in touch with other parties on the issue.

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