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