Citizens’ Research Collective on SEZ

Priya Ranjan Dash

New Delhi, January 04, 2008: Averting a clash with Congress-ruled Goa, the United Progressive Alliance government at the Centre on Thursday put the onus for having or not having special economic zones (SEZs) squarely on the states.

“The Centre does not want to impose SEZs on the states,” commerce and industry minister Kamal Nath said after a meeting with Goa chief minister Digambar Kamath here. Kamath had rushed here to meet Nath and the Congress leadership after commerce secretary GK Pillai said on Wednesday that three SEZs in Goa, already notified by the Centre, cannot be denotified.

Faced with widespread protests from environment groups, the Kamath government had announced a halt to all 15 SEZ plans in the state, including the three already notified.

Kamath requested the Centre to denotify the SEZs. Nath said the Centre could review all SEZs in Goa after it received a formal communication from the state government.

Commerce ministry officials say the Centre does not want to create a Nandigram-like situation in any state. It is up to the state governments to take a call on hosting SEZs. The Centre approves only those proposals that have the formal backing of the state governments.

Officials say that since promoters of SEZs enjoy a stable, legally-guaranteed policy regime under the SEZ Act, it is not easy to denotify a zone.

The developers can approach the courts seeking compensation and damages. The Centre would, therefore, like to play it safe in the case of Goa. It expects to act only after the state government formally communicates the grounds for its decision to scrape each SEZ.

Source: DNA