State planning commission calls for review of SEZ policies

Mumbai, June 19 (UNI) The draft 11th five year plan of the Maharashtra State Planning Commision has called for a review of SEZ policies which, it said, would lead to a greater imbalance in the industrial sector.

Addressing a press conference here, deputy chairman of the state planning commission Dr Ratnakar Mahajan said the proposed SEZs in the state are centered around Pune district, Nashik and Mumbai. Due to this, industrial progress in this belt would grow by leaps and bounds but at the same time result in imbalance in the overall growth of the state. In the SEZs, industrial houses would get tax related and other benefits. Hence, the per capital income and standard of living in these areas would be very high.

Dr Mahajan said SEZs world over are models of quick economic growth. But, there is no mechanism in India to find out whether the model would work effectively here.

He said due to the SEZs, small manufacturers would be subjected to injustice as he would not be able to compete with the products coming out of the SEZs and allowed to be sold in the domestic market. It is expected that products manufactured in SEZs will be exported. Dr Mahajan also informed that the percentage of below poverty line (bpl) population in rural areas in 2004-05 was 9.18 per cent while that in urban areas was 18.23 per cent during the same year.

Dr Mahajan said the foreign exchange reserves since 1991 stands at 180 billion dollars. if SEZs are being permitted with the aim to boost exports and earn foreign exchange, the purpose has been achieved long ago. Hence, the need of the hour was to review the SEZ policies from the root.

He said the draft report has been submitted to the government and it will be discussed in the soon to be formed State Development COuncil (SDC).

He said the draft plan focussed on employment oriented balanced development of the state. The plan also calls for concrete effort for poverty erradication. It says that SEZs should be taken up in remote hilly tribal areas and infrastructure development should be provided.

It also wants the government to set up a child rights commission.

UNI