SEZ issue continue to agitate MPs

New Delhi, May 9 (UNI) The issue of special economic zones (SZEs) continued to agitate members of Parliament across the political spectrum today notwithstanding the Central government's capping the size of multi-product SEZs to 5,000 hectares and allowing state governments to even lower this limit.

Replying to 11 questions on the issue in the Rajya Sabha, Minister of State for Commerce and Industry Jairam Ramesh said the Central government has asked the Rural Development ministry to reformulate a comprehensive land acquistion act to address all relevant issues as also to work out a comprehensive resettlement and rehabiliation policy ensuring livilihood from SEZs to at least one person from each displaced family.

While stating that 101 SEZs notified so far have provided direct employment to 32,578 people, he said when fully operational these SEZs would provide about 15.47 lakh jobs. But the Minister said there was no proposal to link the allotment of land for an SEZ to employment generation by it.

He said more than Rs 35,000 crore has already been invested in these SEZs.

On developing of agriculture and agro-based industries in the SEZs, the Minister said Maharashtra Industrial Development Corporation (MIDC) is developing an agro-SEZ on 200 hectares of land in Latur, while a private company has been given in-principle approval to set up agro-based chemical SEZ on 106 hectares in rural area of Bharuch district in Gujarat.

Stating that there would be no compulsory acquistion of land for such SEZs, Mr Jairam Ramesh said Reserve Bank has also directed the banks not to lend money to SEZ developers and to acquirers of SEZ units at the rate they lend it to infrastructure sector. All lending to SEZ developers and those acquiring units in SEZs should be at rate applicable to real estate. Rate of lending to real estate is more than the one applicable to infrastructure development.

Those who put up questions were Prof P J Kurien, Mr V Narayansamy, Mr Karnendu Bhattacharjee, Ms Shushila Tiriya, Mr V Hanumantha Rao (Congress), Mr S S Ahluwalia, Mr Ramdas Agarwal and Mr Rudra Narayan Pany (BJP), Mr Naresh Gujral (Shiromani Akali Dal), Mr Ajay Singh Chautala (Indian National Lok Dal) and Mr S P M Syed Khan (AIADMK).

UNI