Citizens’ Research Collective on SEZ

New Delhi/Gurgaon January 16, 2008 (PTI & UNI): The board of approval for SEZs will next month consider a request to scrap SEZs in Goa, weeks after the Commerce Minister, Mr Kamal Nath asserted that the Centre will not thrust such projects on states.

“We will take the issue to the board of approval which will meet in February to deliberate on Goa government’s request to cancel the SEZs, including the three notified projects,” a highly placed official said.

He said despite political assertions, it may not be legally tenable for the Centre to de-notify SEZs that have already become legal entities.

Goa had announced scrapping of all the 15 SEZs in the state on December 31. Three projects, including one from Cipla, have already been notified.

The official said while it would not be much of a problem for the commerce ministry to accede to the request for cancellation of the formally cleared proposals, the problem would arise for the notified projects.

Immediately after announcing the cancellation of the SEZs, the Goa Chief Minister, Mr Digambar Kamat had met Mr Nath and other Congress leaders in the capital. After the meeting, Mr Nath had said that the Centre would not impose an SEZ on any state.

He reiterated his stand again while talking to reporters on the sidelines of partnership summit of CII at Gurgaon today. “Centre will not thrust any SEZ. The states can choose their own developmental model,” he said. Mr Nath said the SEZ Act was working well and there was no question of amending it.

The commerce secretary, Mr G K Pillai, who heads the BoA, had earlier stated that notified projects couldn’t be de-notified. However, an opposite view was taken by Mr Nath.

The government today took a strong stance on the Goa SEZ issue, saying it will not rethink the decision as it is an Act of Parliament and it was now on the states to adopt a suitable development model.

“There is no rethinking needed as it’s an Act of Parliament. The Goa Chief Minister has written to us and we are studying the matter,’’ the Commerce and Industry Minister told reporters in Gurgaon on the sidelines of the CII partnership summit 2008.

He added that it was up to the state to take a decision on the development model they would like to have.

“The SEZ Act has been very successful and has generated both investment and employment,” Mr Nath said.

The state of Goa has 15 SEZs, of which three are notified.

A notification happens only when the board of approvals gives its nod. SEZ, thus is a legal entity and can commence operations.

Pharmaceutical major Cipla has one notified SEZ in Goa and has already pumped in Rs 500 crore and equipment has already been imported.

Mr Nath added that considerate decisions should be taken keeping in the mind the interest of the people and the business community.

Source: The Navhind Times