Videocon hires 50 farmers for Aurangabad SEZ

In its efforts to gain confidence of the farming community for its special economic zone projects, Videocon Industries has started hiring farmers or their relatives in their Aurangabad facilities despite locals not selling land to the company.

"We have already hired 50 farmers so that the message is clear to the community that we are serious in our endeavour to rehabilitate them and not eyeing their land," Chairman of Videocon group, Venugopal Dhoot told Business Standard.

"These farmers have not sold their land to us and they are not under any compulsion to do so. What we are trying to do is to let the farmers know that we would not go back on any of our promises," Dhoot said. The recruitment of farmers is expected to double within this month, Dhoot said.

Videocon has already acquired 100 acres in Aurangabad and is acquiring land for its 1,180 hectare Pune SEZ. Early this month, the land acquisition of the consumer durable giant's Pune SEZ project took a turn for the worse as farmers protested the acquisition.

Industry body Assocham has already written to the commerce ministry about the various packages on offer for the farmers. Assocham, which Dhoot heads, will be soon meeting the Prime Minister to break the deadlock over the SEZ projects stuck across the country.

"The projects, which are not facing any protests, should be cleared on a priority basis," he added.

"All the three parties, the government, the industry and the farmers themselves agree on the rehabilitation schemes then why are these projects on hold?" asked Dhoot.

Thanks to the indecision, the projects are already late by two years and is facing massive cost overruns, he said. It has also sent negative signals abroad at a time when India is a top destination for investments, he added.

On the SEZs based in metros, Dhoot said even if a company has less than 20 acres of land, it should be allowed all the concessions of a SEZ, provided the developer has local government's permission to develop minimum 1,00,000 square feet.

"This would help the infotech parks as most of their employees do not want to stay away from cities. The 25 acre minimum area should be bought down to 20 acres so that the country continues to retain its edge in the infotech sector," he suggested.