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Wednesday, Jun 20, 2007
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Maharashtra board: rethink on SEZs

Special Correspondent

SEZs would lead to an imbalance in regional development

Draft plan summary released
‘Developing SEZs to increasing exports was not feasible’

MUMBAI: The Maharashtra Planning Board, which has drafted the State’s 11th five-year plan, says there should be a complete re-think on the proposed Special Economic Zones (SEZs), even as land acquisition is facing widespread protests. The number of SEZs proposed in the State is the biggest in the country.Addressing a press conference here on Tuesday, Board President Ratnakar Mahajan said it was time to examine if the SEZ model of development could be imported as it was done without consideration. Releasing a summary of the draft plan for 2007-2012, he said that in China, Parliament recently examined the SEZs and it was found that 64 per cent of them were related to construction and developing property. Parliament decided that social sectors would have to be strengthened for development.

The SEZs would lead to an imbalance in regional development as most of them were being located in the prosperous areas of Mumbai, Pune and Nashik, at a time when the number of very poor was increasing in both urban and rural areas of the State.

Manufacturing units in the SEZs would have many tax concessions and goods produced there would be exported to other countries.

This meant manufacturers outside the SEZs losing out in competition. India’s share in international tradewas a mere one per cent and Indian companies should be given incentives to increase their share.

Developing SEZs alone to increase exports was not feasible, especially in the context of India already having huge foreign exchange reserves of $180 billion, Dr. Mahajan said.

The plan would be submitted to the State Development Council, to be be set up on the lines of the National Development Council, for endorsement.

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