States must take responsibility of compensation for SEZs

Hyderabad, Nov 15 (UNI) Union Commerce Secretary G K Pillai today said the Special Economic Zones would accelerate economic progress.

Talking to newspersons here Mr Pillai who was here to deliver the 'Yarlagadda Sriramulu Memorial Lecture', however cautioned state governments that farmers whose lands were being acquired for setting up the SEZs should not suffer financially.

While the Union Government sanctioned the SEZs, it was the duty of the states to pay compensation to the farmers who lose their lands, he said.

He said though the authority to scrutinize the applications of states and sanction the SEZs was vested with the Union Government, the states would have to take the responsibility of payment of compensation to land owners.

He said under the Constition, land was a state subject and clarified that the Centre could not interfere in land dealings.

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