UP amends SEZ policy; ADAG proposed SEZ at Noida in doldrums

Lucknow, Aug 18 (UNI) Effecting major changes in the existing Special Economic Zone (SEZs) policy, Uttar Pradesh government has approved the amendments made by a high-powered committee in accordance with the Centre's guidelines.

With this amendment, the proposed multi project SEZ of Anil Dhirubhai Ambani Group (ADAG) at NOIDA spread in 1,200 acres might not see the light of day with the state government refusing to acquire 2,000 acres more land for the project.

The state cabinet today approved changes in the new state SEZ policy.

Briefing about the cabinet decision, principal secretary to chief minister Shailesh Krishna said as per the commerce ministry guidelines dated June 15, 2007, forcible acquisition of land against the wishes of farmers had been prohibited.

In the ADAG multi project SEZ at least 2,000 acre more land is required and this requirement cannot be met without the forcible acquisition of farmers' land.

Mr Krishna said under the new policy, now Private-Public Partnership (PPP) would be the main base of the SEZs in UP with open selection of projects. Earlier, the SEZs were awarded on first come, first serve basis.

''Now government participation in SEZs would be on equity basis,'' he said.

Now, the government concession can only be taken by processing units and the non-processing units will recieve no government benefits.

The new SEZ policy has framed separate guideline for the projects of the Information Technology (IT) sector.

The BSP government, after it came to power in UP in May last, had set up a committee of secretaries headed by Industrial Development commissioner Atul Kumar Gupta, to review the SEZ policy announced by the previous Samajwadi Party government led by Mulayam Singh Yadav, announced in May 2006.

The Mayawati-led government in its second meeting of the cabinet on May 24 had decided to refer the ADAG's SEZ proposal to the Centre as this does not confirm to the guidelines laid down by the union commerce ministry.

The state government had then said as per the guidelines for the SEZ laid down by the Centre the SEZ should be located on a contiguous plot of land.

In case of ADAG's SEZ proposal at NOIDA, the land is in two parts and a road is located within the 1,200 acre land for the project.

This was in violation of the Centre's guidelines for the SEZ and the UP government has decided to apprise the union commerce ministry of the glaring anomaly. A contiguous plot of land for the SEZ is the primary condition imposed by the Centre.

UNI