HYDERABAD: Union Commerce Secretary G. K. Pillai has made light of the talk that the country's food security will be affected by the acquisition of arable land for setting up of special economic zones (SEZ), saying that only .000012 per cent of such area is being `diverted' for the projects. He has also made it clear that real estate activity will not be allowed in SEZs.

Delivering the Yarlagadda Sreeramulu Third Endowment Lecture here on Wednesday, he said so far the nod had been given for establishing 237 SEZs in 16 States and Union Territories. Another 166 approvals were given in principle and 41SEZs formally notified.

He said the area involved was 34,500 hectares, and wondered how "distinguished economists", politicians and others could say that it would affect food security. People were not looking at facts.

The lands being acquired for SEZs by the State Governments constituted only 10 per cent of the total acquisitions for various projects. Mr. Pillai said land, payment of compensation, relief and rehabilitation were State subjects and it was for State Governments to decide which land should be earmarked for SEZs.

While the policies of each State differed, his Ministry was encouraging partnerships with farmers, wherein 75 per cent of the cost of land acquired would be paid in cash and 25 per cent would be in the form of shares of the corporation.

While Rs.2,700 crore was invested in SEZs over 30 years, an investment of more than Rs.10,000 crore had been made in eight to nine of them in the last nine months.

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