Mumbai: The acquisition of land for the special economic zone being set up by the Anil Ambani Group in Uttar Pradesh seems to have run into rough weather even as the government said it is adopting a hands-off policy in land acquisitions for setting up SEZs.

The government is reviewing land acquisition policy for setting up special economic zones (SEZs) and it would no longer be compulsory for owners to sell, commerce minister Kamal Nath said.

"The whole land acquisition policy is being re-looked at, along with the rehabilitation policy," Nath said, adding, "The government has one clear thing on SEZs. SEZs are here to stay. The question is land acquisition. There would be no compulsory land acquisition."

The review follows nation-wide protests by farmers and land owners over the government''s plans to acquire land to develop hundreds of SEZs and the authorities in no mood to help he promoters.

''''The Board of Approval may relax contiguity clause, while the Uttar Pradesh government had stated that SEZ was in violation of rules. But the bigger problem the SEZ has run into is acquisition of land for which Greater Noida authorities have adopted a rigid attitude,'''' an official said.

According to rules the area identified for SEZ shall be contiguous and vacant and have no public thoroughfare According to rules the area identified for SEZ shall be contiguous and vacant and have no public thoroughfare.

Of the required 3,000 acres, only 400 acres of land could be acquired so far. Earlier, Greater Noida authorities were helping in land acquisition as the SEZ was part of its master plan.

The SEZ, which is being implemented by a special purpose vehicle between Ambani and the Noida authority, has received in-principle approval from the centre. After acquiring land it would need the board''s nod and then go for notification.

Soon after assuming office earlier this month, the Mayawati government in Uttar Pradesh had referred to the ADAG-promoted SEZ to the union commerce ministry stating that there was a violation in the proposal.
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The state government had pointed to violations related to a road dividing the 1,200 hectare piece of land on which the multi-product SEZ was proposed to be set up.

The Board of Approval can relax the condition, as was done in case of Mukesh Ambani-led Jamnagar SEZ in Gujarat, if it is satisfied that the thoroughfare could not be used for taking out goods from the zone to the domestic market without paying duties.