Citizens’ Research Collective on SEZ

New Delhi, January 03, 2008: Union Commerce and Industry Minister Kamal Nath on Thursday said the Centre had the right to de-notify a Special Economic Zone (SEZ).

“There are provisions in the SEZ Act for review of the notified zones,” he told journalists after meeting Goa Chief Minister Digambar Kamat here.

Mr. Nath said the Centre could review all SEZs in Goa, including those notified. “We do not want to thrust SEZs on the States. After receiving requests from the Goa government, we will take appropriate action.”

Mr. Kamat called on Mr. Nath seeking cancellation of all 15 SEZs in the State, including the three notified, following protests. “We will send a formal request [for cancellation of SEZs] within the next two to three days.”

On Wednesday, Union Commerce Secretary G.K. Pillai said that a notified SEZ, which was a legal entity, could not be de-notified. However, those proposals, which were under various stages of approval, could be withdrawn or cancelled based on the recommendations of the State governments.

Mr. Kamat expressed “satisfaction” after his meeting with Mr. Nath. “I am satisfied with the Minister’s assurance. Our position is that if Goans don’t want SEZs; SEZs won’t come to Goa,” he told journalists at the Congress headquarters here.

Asked about the legal/financial ramifications of scrapping the notified SEZs, he said: “I see no ramifications. Which company will go against the people? I am not going to fight their battle. They should have convinced the people first.”

To a question whether he sought a review of the SEZ policy, he said Goa was not like other States. “It is amongst the first five international tourist destinations. We have a limitation on industrialisation. The government doesn’t hold much land. The land belongs to communities, and this Congress government will not go against the wishes of the people.”

Indicating that the local people felt there was scarcity of land and the land that had been acquired for the SEZs was at “dirt cheap rates,” he said people should have been explained the basic concept of SEZs and their advantages to Goa and the Goans. “No such exercise was done.”

Mr. Kamat said he had brought the controversy to the notice of Prime Minister Manmohan Singh and Congress President Sonia Gandhi. The latter advised him “not to go against the wishes of people,” he said.

Opposition consulted
The Chief Minister said the State Cabinet Committee on Infrastructure, Congress Committee, the Goa PCC, NGOs, coalition partners and opposition Bhartiya Janata Party were consulted. “After taking into consideration all the views, it was decided that the SEZs proposals were not conducive for Goa.” On the implication of the Goa decision on National SEZ Policy, Mr. Kamat said, “I can only talk about Goa. I am too small to talk about other States.”

Source: The Hindu