Sitaram Yechuri calls for review of SEZ policy

Mumbai, Sept 21: A day after the Reserve Bank of India (RBI) dealt a blow to the Corporate India's rush for setting up special economic zones by treating lending to SEZs or acquistion of units in SEZs as exposure to commercial real estate, the CPI (M) today called for a halt to creation of SEZs across the country untill a comprehensive review of the SEZ policy by the Central government.

Pointing out the differences on the SEZ policy between the Finance and Commerce ministries, party Rajya Sabha MP Sitaram Yechuri told sources that leftist parties would present a memorandum on the issue to the UPA during its coordination meeting with the Left in New Delhi on September 28.

Experts said RBI's direction on lending to SEZs will not only raise the cost of funds for SEZ developers , but also reduce the availability of funds.

Addressing a party-supported farmers rally at Belapur in Navi Mumbai to protest acqusition of farmland for the proposed Navi Mumbai SEZ by the Mukesh Ambani-led Reliance Group, the Marxist leader said indiscriminate growth of SEZs across the country was not only deterimental to the interests of farming community but also posed a threat to the national food security with large scale acquistion of agricultural land.

Dismissing the comparsion between SEZs in India and China as '' untenable'', Mr Yechuri said SEZs in the communist country were not set up at a cost of agriculture production. He also defended SEZs set up in the Left-ruled West Bengal and Kerala saying these did not harm the interests of farming community.

He warned that if the Central government did not make suitable amendments in the SEZ policy for safeguarding the farmers' interests, the CPI (M) will launch a nationwide agitation against the current SEZ policy, adding the protest movement will start from Maharashtra.

UNI

Related Stories