New Delhi: Meet of eGoM ends inconclusively

New Delhi, Jan 22: A meeting of the empowered Group of Ministers (eGoM), set up to examine the official policy on Special Economic Zones (SEZs), ended inconclusively today.

The eGoM, headed by External Affairs Minister Pranab Mukherjee, did not take any fresh decision and was awaiting the feedback from states on the touchy issue of land acquisition, which is a state subject.

"The Centre does not have any say in the matter of land acquisition," Union Commerce and Industry Minister Kamal Nath told waiting newspersons after the meeting.

While the ministers discussed the Prime Minister's recommendation for a special rehabilitation package for those displaced by SEZs, it was also decided that of the 300 proposed SEZs, the 63 notified ones could go ahead as proposed. The meeting considered three aspects of the controversial SEZ issue -- the land acquisition policy, land rehabilitation policy and the potential of misuse of tax breaks offered to these units.

Today's meeting assumes significance following violent protests from farmers in Singur and Nandigram in West Bengal.

The eGoM did not take any decision to reverse the existing policy as it is awaiting the report on the rehabilitation draft which has been circulated among the states. Due to the prior engagement of Mr Mukherjee, who is the eGoM Chairman, the meeting adjourned inconclusively. It will meet again in early February after Mr Kamal Nath returns from the World Economic Forum at Davos in Switzerland.

The Board of Approval (BoA) for SEZs will not consider any new cases until the rehabilitation policy is sorted out.

The Ministers at today's meeting noted that land acquisition had emerged as a major concern and could snowball into a major political handicap for the United Progressive Alliance (UPA) Government.

It was further decided that the decisions taken will have prospective effect and will not be with retrospective effect.

UNI