Controversy over changes in SEZ norms
The government is considering a fresh revision in the draft guidelines for development of Special Economic Zones (SEZs) that could dilute the role of state governments in acquisition and development of land for these projects and make adherence to environment rules optional.
The government has, however, disputed this interpretation. The confusion regarding the proposed changes followed after the ministry of commerce and industry omitted some specific clauses regarding land acquisition that were present in the previous draft guidelines issued in August.
The ministry had issued the first set of draft guidelines on 5 August for public discussion. It incorporated the suggestions and issued revised draft guidelines on 13 November. And it has sought comments on the new guidelines by 10 December.
The earlier draft said “The developer may acquire land by negotiations and mutual consent.” It also said “The state government may allocate government land for setting up of SEZ in the manner as may be prescribed. The state government may also agree to acquire land for establishment of SEZ by consent agreement or through proceedings under the relevant Act provided there is no forceful acquisition.”
However, the new guidelines have omitted both these earlier clauses.
D.K. Mittal, additional secretary in the commerce ministry and in charge of SEZs, said: “The intention is not to dilute the previous guidelines. There are separate guidelines, which prohibit forceful acquisition. That’s why it is not repeated here. Then, land acquisition is a state government domain. Hence, we did not want to get into that.”
However, analysts have a different point of view. “The clarity is missing in the new sets of guidelines regarding the role of the state government in development of SEZs. While I support that state governments should not acquire land on behalf of private players, I do not understand why the clause which said that state governments can allocate land in their possession for SEZs was deleted. The new guidelines are confusing regarding where the state government should come in and where it should keep out,” said Sameer Bhatia, senior director and national leader, SEZ advisory practice, Deloitte Touche Tohmatsu.
