Assocham chief for pact with SEZ-hit farmers

A tripartite agreement should be worked out by farmers, industry and the government to resolve the controversies around land acquisition for special economic zones (SEZs) and other industrial purposes, the newly elected president of industry body Assocham and Videocon chief, Venugopal Dhoot, has said.

In an interview with Business Standard, Dhoot said it was not the intention of corporates to exploit farmers for industrial projects. "The industry does not want to eat somebody's bread. We want the SEZ opportunity to benefit farmers as well," he said.

Dhoot said land should be acquired from farmers at the prevailing market prices. "Guaranteed jobs should be given to members of families affected by the land acquisition. In addition, farmers should be given land at an alternative place," he added.

Dhoot, whose company Videocon is in the midst of an acquisition bid for Daewoo Electronics, demanded that Indian companies buying international giants be given a 10 year tax holiday on its investment in the acquired company.

He said Indian industry must look at going global and to this end, the government should grant tax sops to corporates. He pointed out that South Korea had gained popularity primarily because of its home grown global brands like LG and Samsung.

"The Indian consumer durable industry and the automobile industry will also have to go global. This is the only way for Indian industry to become a household name abroad," he said.

Outlining Assocham's Budget wish list, Dhoot said the industry body had suggested a reduction in tax rates. "Reduction in the rates will result in more revenues for the government. It will be a win-win situation for industry and the government," he said.