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Article #373: Sez Rush In India

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SEZs have become the most talked about in agricultural prospects.'
the Indian economic circles, its lack of Capping months of debate on the pros and
clear policy has provoked strong cons of developing Special Economic Zones
opposition from leftist political (SEZs), the commerce ministry has issued
parties, activists, farmers groups, a caveat that prime agricultural land
economists and urban planners. However should not be used for business purposes
the government of India is moving ahead India's commerce ministry has asked the
with the programme to set up special chief ministers of all Indian states to
economic zones (SEZs) to trigger a ensure that prime agricultural land was
manufacturing wave in the country. Amid not allotted to business houses for
evidence of an undercurrent of rural development as Special Economic Zones
hostility to giant industrial zones (SEZ), and that in any event agricultural
coming up on agricultural land, Posco, a land must not exceed 10% of the land
South Korean steel company, was last week allotted. The commerce ministry's
permitted to set up a 1,600ha SEZ in clarification, which also underlines that
mineral-rich Orissa state. farmers be adequately compensated for
Posco plans to invest 530 billion rupees their land and rehabilitated fairly,
(S$18 billion) in the zone. Some 30 other comes in the face of mounting concern
SEZ applications have now won the backing that diverting agricultural land for the
of the Board of Approvals, taking the development of business interests, that
total number of SEZ proposals cleared to too at government rates, was riding
181. The government sees boosting roughshod over the interests of India's
manufacturing as crucial to balancing the farmers. This has come as a reality check
country's economic growth. Untypical for for state governments that have been
a developing country, India's services aggressively pushing their SEZ proposals
sector contributes about 54 per cent of for clearance from the Centre. So far,
GDP. Economists say a China-style push to the Indian government has handed out over
manufacturing is needed to provide jobs 150 licenses to set up SEZs; another 200
for the unemployed and those migrating applicants are on the waiting list.
from farm work. However, the chief minister of Andhra
But SEZs also have raised some Pradesh - the biggest beneficiary of SEZs
controversy in India. Finance Minister P. so far has categorically ruled out any
Chidambaram has warned of massive revenue review of SEZs already cleared for the
losses because of the tax breaks accorded state. It said that SEZs should serve
to companies in the zones. With SEZ being as a bridge between rural and urban
under the charge of the Commerce economies. The concept of PURA (Provision
Ministry, there has been a turf war of of Urban Facilities in Rural Areas),
sorts between him and Commerce Minister which is how developed countries have
Kamal Nath. As well, several political holistically conceptualized their rural
leaders are uncomfortable about pushing habitations, needs to be remembered at a
farmers off land in a nation where six in time when India is entering an era of
10 people depend on agriculture for a SEZs. The explosion in the economy
living. Mrs. Gandhi, who chairs the envisaged through SEZs will have to be
ruling coalition, said: 'Prime linked to integrated infrastructure in
agricultural land should not be diverted rural and urban areas. India should focus
to non- agricultural uses and, even if on comprehensive and integrated spatial
this is resorted to for unavoidable planning within and beyond SEZs. This
reasons, this should not jeopardize however is a dream come true here.






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