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Wednesday, Sep 24, 2008
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CPI to insist on legislation for SEZs

Special Correspondent

THIRUVANANTHAPURAM: The CPI State council has resolved to insist on strict compliance with the SEZ norms approved by the LDF State committee and to reiterate the party’s demand for a separate legislation on the subject when the issue comes up before the Cabinet on Wednesday.

The CPI State council, which began a two-day meeting here on Tuesday, was happy that the conditions put forward by the party were, in general, accepted by the LDF State committee. The council was, however, of the view that there was need for more clarity on the question of a legislation to cover the SEZs. The party would not stand in the way of the SEZ proposals already before the government being referred to the Centre for want of clarity on the issue. But it might well demand that the SEZ promoters give an undertaking to the government regarding compliance with the new norms.

Party sources said a new law to cover the SEZs was one of the conditions approved by the LDF committee, though it was not announced formally. A lot of the confusion about the collective CPI stand on the issue could have been averted if the decision to go in for a legislation on the subject too had been announced.

The main issues raised by the CPI related to the size and product profile of the SEZs, enforcement of all State taxes on the units to be set up in them and the steps needed to protect the interests of labour. The party had wanted a separate legislation covering all these aspects and this, CPI insiders say, was agreed to during the bilateral talks between the CPI and the CPI(M) before the LDF State committee meeting on Friday.

Speculation has been rife about a rift within the CPI over the issue with the AITUC and the AIYF coming out against the SEZs and demanding strict norms if at all SEZs were to be sanctioned. Party sources termed such reports exaggerated and said that the party was united in its position that if SEZs were to be sanctioned, the State government must ensure strict compliance with proposals approved by the LDF panel, including that for a new legislation with retrospective effect.

When dealing with the issue at the State council meeting, party State secretary Veliyam Bhargavan is understood to have fully endorsed the stand taken by CPI State assistant secretaries K.E. Ismail and C.N. Chandrappan at the LDF panel meeting.

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