Citizens’ Research Collective on SEZ

Priya Ranjan Dash, DNA India

New Delhi, June 23, 2007: The Centre’s panel that clears proposals to establish Special Economic Zones made it clear to state governments on Friday that it will not approve any SEZ if even one farmer objects to the acquisition of land for the project.

In its meeting in New Delhi, the Board of Approval (BoA) formally cleared three SEZ proposals of Reliance Industries chairman Mukesh Ambani, and one of the Anil Ambani group.

BoA chairman and commerce secretary GK Pillai told the representatives of the state governments that land for SEZ should be acquired only when all the owners have given consent. The BoA has asserted that if any proposal for compulsorily acquired land comes up, it would not be notified as SEZ.
The BoA considered 52 SEZ proposals and accorded formal approval to 36 and in-principle approval to nine. The three proposals of Navi Mumbai SEZ Pvt Ltd, promoted by Mukesh Ambani and Anand Jain, would cover 345 hectares.

A biotech zone will be set up on 63.74 hectares, a light engineering SEZ will cover 179 hectares, and a pharmal zone will account for 103.25 hectares. Official sources said the entire land was initially proposed to be part of the Navi Mumbai multi-product SEZ of the group, but because the three land parcels were not “contiguous”, the promoters forked them into separate SEZ proposals.

SEZ rules require land parcels to be located in a “contiguous” area so that the zone can be secured as a single “customs area” for import and export activities. The bigger 1,250-hectare Navi Mumbai multi-product SEZ is, in fact, still hanging fire as the Customs have taken objection to the lack of “contiguity” of the area.

Anil Ambani’s group was granted clearance for its proposal to set up an IT/IES SEZ at Dhirubhai Ambani Knowledge City in Navi Mumbai in an area of 18.26 hectares.

With Friday’s clearances, the total number of SEZs that have been granted approval touched 339. Of these, 126 have been notified as SEZs. Commerce ministry said an investment of Rs35,145 crore has been made in the SEZs and these have created 33,000 jobs.

The ministry expects additional employment in new SEZs would cross one lakh by the end of the year.