Govt to go ahead with setting up of SEZs

New Delhi, Apr 5 (UNI) The Government today decided to go ahead with setting up of Special Economic Zones (SEZs), but said there will be no forcible acquisition of land.

The SEZ issue had evoked nationwide attention and concern, especially in the wake of last month's Nandigram killings.

The process for creation of SEZs will continue, except in those cases in which some land acquisition controversy was involved, Commerce and Industry Minister Kamal Nath told reporters after a meeting of the Empowered Group of Ministers (eGoM).

''We are not stopping any process, and formal approval in the existing 83 cases under consideration would be issued by the Department of Commerce,'' he said.

The eGoM in its last meeting held in January, had suspended the processing of all fresh proposals and notification of SEZs after there were violent protest in several parts of the country over forcible land acquisition by states.

It had put on hold even proposals in whose cases there was no land acquisition problem and which had been formally approved by the board of approval for SEZ.

Mr Kamal Nath said 50 per cent of SEZs would be reserved for the processing industry. Earlier, the minimum requirement was 35 per cent of the land.

The ceiling on land for SEZs was placed at 5,000 hectares and this could be reduced by state governments, the minister said.

He said there will be no compulsory acquisiton of land by state governments. Those wanting to set up SEZs would have to purchase land on their own or use their own land.

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