labels: industry - general, economy - general
Ministerial meet on SEZs remains inconclusivenews
22 January 2007

The meeting of empowered group of ministers (EGoM) on special economic zones today could not arrive at a conclusion on the policy to be adopted towards SEZs while the rehabilitation policy will be taken up by the cabinet next month.

The next meeting is likely after commerce and industry minister Kamal Nath returns from the World Economic Forum at Davos.

Nath told reporters after the meeting of the EGoM, the board of approval would not clear any fresh applications till the EGoM reaches a decision. Nath said that the group had discussed land issues, rehabilitation question and possible misuse of tax concessions.

The centre has asked the state governments to submit details of land acquisition for all purposes, including SEZs.

The board of approval (BoA) meeting has been cancelled twice pending the finalisation of the rehabilitation policy as announced by prime minister Dr Manmohan Singh. So far, the BoA has given final approvals to 237 SEZ and in-principle nod to about 165 zones. Besides, another 300 applications are pending before the BoA.

Violent protests at Nandigram in West Bengal where Indonesia's Salim Group had proposed an SEZ, have put the SEZ policy under increased pressure.

Apart from land acquisition and compensation, the EGoM will also decide whether to give clearance to only those proposals where land acquisition is already completed, in which case, in-principle clearances would come to an end. Already, the BoA is considering only those proposals for IT SEZs, where the developer already has land.

The EGoM will also see how to align the rehabilitation policy, which is being worked out by rural development ministry, with the development of SEZs. Sources say while the government does not want to abandon the SEZ policy, it wants to make sure that those displaced by the projects are rehablitated.

also see : SEZ meeting postponed, GoM to meet on Jan 22

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Ministerial meet on SEZs remains inconclusive