EGoM on SEZ to meet on May 10

New Delhi, May 9: In the backdrop of inter-ministerial differences, an Empowered Group of Ministers is meeting here tomorrow to review the issue of minimum area requirement for the Special Economic Zones (SEZs).

The EGoM, headed by Defence Minister Pranab Mukherjee will thrash out the most contentious issue of the minimum area requirement of the SEZs for the information technology industry.

According to sources, there are differences between the Commerce Ministry and Finance Ministry over what could be considered the right size for the IT SEZs. The Finance Ministry argues that if SEZs are allowed on small plots of 10 hectares, every other building having an I.T complex would enjoy the status of SEZ, leading to revenue leakages.

The group which was set up in March was not able to meet till now due to unavailability of ministers in the face of ongoing elections in states. The Finance Ministry is of the view that the minimum area for any SEZ should not be less than 25 acres.

The other members of the group include Finance Minister P Chidambaram, Commerce Minister Kamal Nath, Science and Technology Minister Kapil Sibal, Law Minister H R Bharadwaj, Telecom Minister Dayanidhi Maran and Deputy Chairman of Planning Commission Montek Singh Ahluwalia.

The Board of Approvals has cleared proposals for setting up 148 SEZs, of which some are less than 25 hectares, but these have not been notified.

UNI