The Hindu : Business : 250 SEZs languish for want of approval

Online edition of India's National Newspaper
Thursday, Jan 04, 2007
ePaper

Business

Business

250 SEZs languish for want of approval

Special Correspondent

Disputes on agricultural land acquisition are unlikely to be resolved quickly

NEW DELHI: As many as 250 proposals for creation of special economic zones (SEZs) in 21 States are still languishing for approval from government, mainly owing to disputers on the compensation package and acquisition of agriculture land in the absence of available relief and rehabilitation package.

An analysis of the status of SEZ proposals by Assocham revealed that these proposals were to be cleared latest by the middle of calendar 2006 but continue to linger on for proper sanctions as dispute on agriculture land acquisition is unlikely to be resolved quickly until the top policy makers of various State governments intervene.

A total of 25,000 hectares of land is needed for these SEZs. These proposals, involving an investment of over Rs. 3,000 crore, are awaiting clearance for six to seven months. The states where the SEZs are proposed included Andhra Pradesh (16), Maharashtra (41), Tamil Nadu (33), and Karnataka (36). The record of other states is no better. The apex chamber has said that SEZs would create over 15 lakh job opportunities by 2010 and generate revenue gains for the government through additional economic activities. While highlighting that the Indian population's median age is just under 25 years, which means that there are over 500 million people below 25 years of age, it said that two-thirds of these 500 million are supported by the agricultural sector, which contributes just 21 per cent to the GDP. The chamber said that IT SEZs could be developed and made operational within six months from the date of notification.

Warning the Government that a one-size fit-all approach might not be the best one for India, the chamber said that IT SEZs would play an important role and therefore the policy must provide an enabling environment. "We have to see our requirements and the resources available to us and then refine our policy".

Printer friendly page
Send this article to Friends by E-Mail

Business