Centre may relax cap on SEZ lands

New Delhi: The Centre may allow special economic zones (SEZs) to be bigger than the current limit of 5,000 hectares, a Commerce Ministry official has revealed.

“Since the resettlement and rehabilitation policy is in place, the government may think of relaxing the upper limit of 5,000 hectares for SEZs,” Commerce Secretary G K Pillai said at the India Economic Summit here on Monday.

Talking to newspersons on the sidelines, Pillai pointed out that out of 472 SEZs that have been formally approved, only 34 are multi-product and specified that there are only three-four cases of people wanting the sizes to be increased.

He added that the government would decide whether this will be done on a case-by-case basis or enact a specific policy in this regard. Three to four of these SEZs have an area of 5,000 hectares, including Reliance Industries and DLF.

On land acquisition policy, which is expected to come up for discussion in the current session of the Parliament, he said: “We will have a fresh look after the bill is passed on a case-by-case basis.”

Pillai said farmers would also be given an option of becoming stakeholders in the company that comes up on their land. He said. the government has so far given formal approval to 404 SEZs, while 160 have received in-principle approval and 172 have been notified, in which work has started.

“By March, SEZs will create 1.5 lakh jobs and, by Dec 2009, more than 6 lakh jobs will be created,” he said.
The SEZs have already attracted $13 billion in investments, of which $3 billion is foreign direct investment.

Source: mumbaimirror.com